Aircraft manufacturer Embraer released its financial results for the first quarter of 2022. The company, which produces commercial, military and business jets, is the third largest company in the industry in terms of unit production globally, behind Airbus and Boeing.
Embraer delivered fourteen aircraft during the first three months of this year: six commercial jets and eight business jets. The company delivered four E175s to SkyWest Airlines and two 195-E2s to Aircastle, which will be operated by KLM Cityhopper.
The firm order backlog reached $17.3 billion, the best figure since 2018. This represents about $300 million more than in the same period of 2021.
See also: Embraer delivers fourteen aircraft in the first quarter of 2022
The company’s total revenue reached $600.9 million dollars, 26% less than in the first quarter of 2021. As reported by Embraer, the shutdown of production for almost a month in January influenced this final number. The company made fewer deliveries of commercial and business aircraft and had lower revenues in the defense segment. The numbers were partially offset by higher revenues in the services and support segments.
However, the company reported a gross margin of 20.1%, 10.6% more than during the first three months of the previous year, due to improved performance in all business segments.
The decline in the number of planned deliveries impacted revenues during the first three months of 2022. Commercial aircraft production revenues decreased 38% compared to the first quarter of 2021. It amounted to $169.2 million. Revenues from business aircraft deliveries were $89.9 million, down 41% from last year. The area’s gross margin exceeded that of 2021.
Defense and security revenues fell 47%. It was $68.3 million dollars, mainly due to the absence of KC-390 deliveries in the period. The area’s gross margin also exceeded that of 2021.
Finally, revenues from aeronautical services activities amounted to $271.2 million, a year-on-year growth of 8%. The segment continues to recover thanks to the global industry recovery. Gross margin was 26.5%, up from 24.6% in 2021.
Free cash flow was $67.8 million. This represents a significant improvement from the $226.6 million in the first three months of 2021 and the best number since 2010. According to the company, the result is due to working capital optimization measures taken.
Embraer’s total debt was $3.6 billion as of March 31. The company reduced $500 million of debt compared to the same period last year.
Embraer plans to enter the cargo market soon with the introduction of passenger-to-freighter variants of the E190 and E195. Entry into service of the freighter-converted units is planned for 2024.
See also: Embraer adventure in the Freighter market: An interview with Johann Bordais
