Air Canada cancels over 1,200 flights, citing poor weather and runway disruptions at Toronto Pearson
19th February 2025
In the second quarter of 2018, Embraer delivered 28 commercial and 20 executive (15 light and 5 large) jets, compared to the 35 commercial and 24 executive (16 light and 8 large) jets in the prior year quarter.
The company's firm order backlog was US$ 17.4 billion at the end of 2Q18, including contracts of the Services & Support segment.
Embraer’s reported EBIT and EBITDA in 2Q18 were US$ (17.7) million and US$ 44.1 million, respectively, yielding margins of -1.4% and 3.5%. The reported EBIT and EBITDA figures include the negative impact of a non-recurring special item of US$ 127.2 million related to additional costs (cost base revision) on the KC-390 development contract in 2Q18, resulting from the recent incident with prototype aircraft 001 in May.
Adjusted EBIT and adjusted EBITDA, excluding the impact of the KC-390 cost base revision, were US$ 109.5 million and US$ 171.3 million, respectively. Adjusted EBIT margin in 2Q18 was 8.7% and adjusted EBITDA margin in the same period was 13.6%. Year-to-date, adjusted EBIT margin for the Company was 6.0% and adjusted EBITDA margin was 11.6%, in line with Embraer's published 2018 guidance ranges of 5-6% for adjusted EBIT and 10-11% for adjusted EBITDA.
The second quarter net loss attributable to Embraer shareholders and loss per ADS were US$ (126.5) million and US$ (0.69), respectively. Adjusted Net income (excluding deferred income tax and social contribution and special items) for 2Q18 was US$ 6.1 million, with Adjusted earnings per ADS of US$ 0.03.
Embraer generated US$ 47.8 million in Free cash flow in 2Q18, and finished the quarter with total cash of US$ 3,341.1 million and total debt of US$ 4,062.3 million, yielding net debt of US$ 721.2 million.
The company reaffirms all aspects of its 2018 financial and aircraft deliveries guidance, which does not include the non-recurring impact of the KC-390 cost base revision recognized in 2Q18.
Meanwhile, Embraer confirmed yesterday that it will defend itself against a lawsuit aimed at halting the acquisition of the commercial jet unit by Boeing. The lawsuit was filed by four congressmen for the left-wing Workers Party against the federal government and Embraer. It seeks an injunction to freeze talks between the two planemakers.