Embraer intends to increase the number of commercial jets to be delivered in 2023, but at a smooth pace. The Brazilian planemaker announced a delivery target of between 65 and 70 aircraft for this year, slightly above the proposed plan for last year.
In 2022, the company managed to deliver just 57 jets, three less than the less optimistic forecast (60). The goal last year was to have 70 planes delivered, but problems in the supply chain affected the pace of production.
US regional airlines, one of Embraer’s main customers, also contributed to the underwhelming result as they struggle to fill crew vacancies.
| Segment | Net revenues 2021 | Diference | Net revenues 2022 | Var. |
|---|---|---|---|---|
| Commercial Aviation | 1.316.400.000 | 227.500.000 | 1.543.900.000 | 17,3% |
| Executive Aviation | 1.130.100.000 | 114.300.000 | 1.244.400.000 | 10,1% |
| Defense & Security | 594.400.000 | -146.800.000 | 447.600.000 | -24,7% |
| Services & Support | 1.132.200.000 | 134.600.000 | 1.266.800.000 | 11,9% |
| Others | 24.100.000 | 13.600.000 | 37.700.000 | 56,4% |
| Total | 4.197.200.000 | 343.200.000 | 4.540.400.000 | 8,2% |
In addition to commercial aviation, Embraer also revealed the goal of delivering 120 to 130 executive jets in 2023. In this case, the increase compared to 2022 (102 aircraft delivered) is 18% if the lower target is achieved.
The company also believes it can achieve consolidated net income of between $5.2 billion and $5.7 billion this year.
Services grow, defense shrinks
In the balance sheet for 2022, Embraer revealed some financial improvement, despite the challenges faced.
Gross sales, for example, grew by 3.4%, reaching almost US$ 4.5 billion. The commercial aviation division remains the main source of revenue with almost $1.54 billion, up 17% compared to 2021.
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The services segment, however, draws attention as it already represents the second largest area in revenues, with more than $1.27 billion, 712% more than in the previous year.
Business jets were just behind at $1.24 billion (10% growth), followed by defense and security, down 27%.
According to Embraer, the negative result was due to the delivery of five Super Tucanos in 2021, whose revenue was not repeated last year.
The company said that the renegotiation of the KC-390 supply contract for the Brazilian Air Force, which cut three more planes, did not greatly affect revenue. On the other hand, the order from Hungary made up for the losses.
