Embraer releases fourth quarter and fiscal year 2017 results and 2018 outlook

Eleanor Steed
By Eleanor Steed March 12, 2018 15:51

Embraer releases fourth quarter and fiscal year 2017 results and 2018 outlook

Embraer delivered 23 commercial jets and 50 executive jets (32 light / 18 large) in the fourth quarter of 2017, and in 2017 delivered 101 commercial jets and 109 executive (72 light / 37 large) jets, meeting Guidance for 2017. Revenues in 4Q17 reached US$ 1,733.0 million and in 2017 were US$ 5,839.3 million, within the Company’s Guidance range of US$ 5.7 to US$ 6.1 billion. On an adjusted basis, EBIT and adjusted EBITDA excluding special items were US$ 132.7 million and US$ 220.3 million, respectively, in 4Q17, yielding margins of 7.7% and 12.7%. Adjusted EBIT and adjusted EBITDA exclude US$ 66.0 million in net non-recurring charges in 4Q17, mostly related to impairments in the Executive Jets and Defense & Security segments.

For the full year, adjusted EBIT and adjusted EBITDA were US$ 397.1 million and US$ 712.5 million, respectively, excluding US$ 67.8 million in net non-recurring charges. For 2017, adjusted EBIT margin was 6.8% and adjusted EBITDA margin was 12.2%, which were below the company’s guidance.

Embraer closed 2017 with adjusted free cash flow generation of US$ 406.7 million in 4Q17, resulting in positive 2017 free cash flow of US$ 404.8 million, significantly above the Company’s initial expectations for the year of free cash flow consumption of US$(150) million or better. Embraer finished 2017 with net debt of US$ 310.8 million, an improved position versus net debt of US$ 574.7 million at the end of 2016; 4Q17 Net income attributable to Embraer shareholders and Earnings per ADS were US$ 35.2 million and US$ 0.19, respectively. Adjusted net income for the quarter was US$ 58.3 million, representing adjusted earnings per ADS of US$ 0.32 in 4Q17. Adjusted net income for 2017 was US$ 279.7 million, representing adjusted earnings per ADS of US$ 1.52 for the year.

Embraer’s first-ever revenue guidance for its new services business projects sales of $900 million-$1 billion across its commercial, executive jets, and defense customer base, the company said, which is 17% of total projected 2018 revenues of $5.4-$5.9 billion.

Eleanor Steed
By Eleanor Steed March 12, 2018 15:51