Brazilian regional jet manufacturer Embraer has reported a net loss of over $30.2 million in its consolidated Q3 results. However, this comes as a significant improvement when compared to the $146.4 million loss recorded in Q2 2022.
Revenues impacted by fall in the defense and security segment
Embraer’s total revenues stood at $929 million, reflecting a drop from around $1.01 billion in the previous quarter and $958.1 million during Q3 2021.
The manufacturer explained that the 3% year-on-year drop in revenues was mostly driven by lower revenues in the defense and security segment, where Embraer experienced a revenue fall of 42% to $101.7 million in 3Q22, which was “mainly impacted by less PoC [Percentage of Completion, ed.-] revenue recognition from A29 [the A-29 Super Tucano is a turboprop light attack aircraft, ed.-] program compared to Q3 2021”.
Meanwhile, quarterly revenues for both commercial and executive aviation as well as services and support grew by 5%, 6%, and 7% reaching $253.3 million, $271.7 million, and $295 million respectively.
Embraer ended September 2022 with $1.3 billion in cash which, together with other financial investments, resulted in $1.9 billion in total cash.
A $17.8 billion firm order backlog
Embraer’s firm order backlog reached $17.8 billion in Q3, representing an increase of 6% when compared to the same period in 2021. Its backlog overall remained stable, the manufacturer said, noting that new firm orders of 20 E195-E2 from Porter and of six E195-E2 from SalamAir were partially mitigated by an agreed reduction of 31 E175s from Republic in the third quarter of 2022.
Turning to commercial aviation, Embraer delivered nine E175s as well as a single E195-E2 aircraft. Meanwhile, customers in the executive aviation segment received 23 jets, consisting of 15 light and eight mid / super-midsize planes during the quarter. It reflected a 10% growth compared to the same quarter a year ago.
Embraer handed over one more aircraft than in Q2 2022.
“Deliveries were higher than 3Q21 and sales pace continued strong, as the second-best 3rd quarter in the last 10 years,” Embraer wrote in the report.
“Growth in the light and mid-sized business jet segments continues strong. Growing fleet aging likely to sustain a significant replacement cycle in the medium-term,” the manufacturer concluded.