Embraer has posted consolidated revenue of US$1,292 million in 2Q23 representing an increase of 27% YoY due to higher volumes in Commercial and Executive aviation with strong growth of 57.4% and 41.8% respectively.
Commercial Aviation reported revenue growth of 57% YoY to US$ 471.9 million due to higher number of deliveries. Reported gross margin of 12.9% versus 13.2% in 2Q22 shows a small decrease due to one-time effects.
Executive Aviation revenues were US$378.0 million, 42% higher than 2Q22 with an increase in volumes and deliveries mix. Gross Margin in 2Q23 was 19.8% compared to 22.1% YoY due to one-time effects last year.
Defence & Security revenue of US$82.4 million, 28% lower YoY due to delay in revenue recognition in the 1H23. Reported gross margin of -1.5% versus 28.0% in 2Q22 due to lower revenue and a different mix, partially offset by other expenses.
Services & Support reported revenues of US$339.7 million, representing a YoY growth of 6%. Reported gross margin of 24.4% lower than the 31.8% reported in 2Q22 due to one-time effects and different mix of services in the quarter.
Excluding the above special items, 2Q23 Adjusted EBIT was US$99.9 million and Adjusted EBIT margin was 7.7%. Strong recovery of Adjusted EBIT in 2Q23 compared to 1Q23 was mainly driven by higher volumes from Commercial and Executive Aviation. On a YoY basis, adjusted EBIT decrease is mainly due to difference in revenue mix and Defence margins compared to 2Q22.
Net income (loss) attributable to Embraer shareholders and income (loss) per ADS for 2Q23 were US$ (18.8) million and US$ (0.1024) per share, respectively, compared to US$ (146.4) million in net loss attributable to Embraer shareholders and US$ (0.7972) in income per ADS in 2Q22. Excluding extraordinary effects, adjusted net income was US$58 million compared to US$ 46 million in 2Q22 representing an increase of 25% YoY. (£1.00 = US$1.27 at time of publication).
