- Embraer’s net revenue for 2Q: $1.82 billion, reflecting a 22% increase year-over-year, surpassing the estimated $1.78 billion.
- Adjusted net income rose 48% year-over-year to $118.9 million, exceeding the estimate of $67.8 million.
- Adjusted EBITDA reached $245.5 million, a 29% increase year-over-year, beating the estimate of $181.2 million.
- The adjusted EBITDA margin improved to 13.5% compared to 12.7% in the prior year.
- Adjusted EBIT was reported at $191.8 million, up by 38% year-over-year.
- Adjusted EBIT margin increased to 10.5%, higher than last year’s 9.3%.
- Negative adjusted free cash flow was $161.6 million, an improvement of 25% year-over-year.
- The net revenue in Brazilian Reais was R$10.27 billion, showing a 31% increase year-over-year.
- Net income attributable to holders in Brazilian Reais was R$448.9 million, a decrease of 14% year-over-year.
- Embraer maintains its revenue forecast for the year at $7 billion to $7.5 billion.
- Estimated deliveries remain 145 to 155 executive jets and 77 to 85 commercial jets for the year.
- Forecasted adjusted EBIT margin is between 7.5% and 8.3%.
- Free cash flow for the year expected to be at least $200 million.
- Analyst ratings include 3 buys, 1 hold, and 1 sell.
A look at Embraer SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Embraer SA, a company that manufactures and markets aircraft for commercial and defense purposes, is showing promising signs for long-term growth and momentum. With a high score of 5 in Growth, Embraer is positioned well to expand its market presence and potentially increase its production capabilities in the future. The company’s momentum score of 5 further indicates strong upward trends that could contribute to its continued success in the industry. While the Value and Dividend scores are moderate at 2, suggesting room for improvement in these areas, Embraer’s Resilience score of 3 signifies a decent ability to weather challenges.
Overall, based on the Smartkarma Smart Scores, Embraer SA appears to have a positive outlook for the long term, especially in terms of growth and momentum. With a focus on manufacturing commercial, corporate, and defense aircraft along with providing maintenance services, the company is strategically positioned to cater to diverse markets in the United States, Europe, and Latin America. By leveraging its strengths in growth and momentum, Embraer has the potential to strengthen its market position and deliver value to its stakeholders in the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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