Embraer delivers its 1,100th business jet, releases Q1 results

Cleveland, Ohio – Embraer delivered its 1,100th business jet May 4, 2017, from Melbourne, Florida. The milestone aircraft is a Phenom 300, and the customer is private aviation company NetJets, with a portfolio of services that includes fractional ownership, jet cards, aircraft management, and charter.

“NetJets has been integral to our success story by co-creating a premium product to meet the discerning tastes of their distinguished owners,” Michael Amalfitano, president & CEO of Embraer Executive Jets, said in a press release.

With more than 670 customers flying 1,100 aircraft in more than 70 countries, Embraer’s business aviation division has accumulated a compound annual growth rate (CAGR) of 19% since 2002, when the first executive jet model was delivered. In 2016, Embraer’s market share represented 18% of the industry’s global deliveries.

Two days earlier, Embraer management in São José dos Campos, Brazil, released figures for the first quarter of 2017 (Q1 2017). For the period, Embraer delivered 18 commercial and 15 executive (11 light and 4 large) jets, representing a decline from the 21 commercial and 23 executive (12 light and 11 large) jet deliveries in Q1 2016.

Revenues in Q1 2017 were $1.026 billion, representing a decline of 21.6% as compared to Q1 2016, due to a decline in commercial jet and executive jet deliveries, according to the company. However, the company’s firm order backlog ended the quarter at $19.2 billion, down only slightly from Q4 2016.

Adjusted earnings before interest and taxes (EBIT) and adjusted earnings before interest, taxes, and amortization (EBITDA) margins were 3.0% and 10.1%, respectively, in Q1 2017.

The company finished Q1 2017 with a total cash position of $3.482 billion and total debt of $4.288 billion, yielding a net debt of $805.8 million. In January, Embraer issued $750 million in principal value of bonds at par, with maturity in 2027 and a coupon rate of 5.4%.

According to Embraer officials, all three jet models of the E-jets E2 program remain on track for their respective entry into service plans starting in 2018, and company management “reiterates all aspects of its financial and delivery outlook for 2017.”