Embraer turns profitable in third quarter and sticks to 2023 aircraft-delivery goal

Embraer swung to profitability in the third quarter of 2023 and still expects to meet its full-year delivery and financial expectations despite a still-struggling supply chain. “We know we have a challenge ahead in terms of deliveries. Therefore, we can expect an intense Q4, mainly due to supply chain constraints,” the Brazilian manufacturer’s CE Francisco Gomes Neto said on 6 November. His comments came as Embraer reported earning a $64.3m profit in the third quarter, reversing a $41.4m loss in the same period last year. The company attributes the improvement largely to a bump in aircraft deliveries. Its commercial aviation division delivered 15 aircraft in the third quarter, up from 10 in the same period of 2022, and generated $425m in revenue, up 68% year on year. Embraer delivered 28 business jets last quarter, up from 23 in the third quarter of 2022, and brought in $340m in revenue, up 25% in one year. The company also logged a 24% jump in service revenue and a 40% bump in defence revenue, year on year. “This quarter was marked by an excellent sales momentum and double-digit revenue growth in all business units,” says Gomes Neto. Executives say their 2023 predictions remain unchanged, though Gomes Neto predicts the company’s aircraft-delivery total will come in at the lower end of its guidance. Embraer has said it expects in 2023 to deliver 65-70 commercial aircraft and 120-130 business jets, to generate $5.2-5.7b in revenue and to post a 6.4-7.4% operating profit margin. The company has a way to go. Embraer generated $3.3b in revenue in the first three quarters of 2023 and delivered 39 commercial aircraft and 66 business jets.<br/>