Embraer exceeds profit expectations. $ERJ (+2.45%)

Embraer exceeds profit expectations - lowers delivery forecast.

The Brazilian aircraft manufacturer Embraer has raised its forecast for the adjusted earnings margin before interest and taxes (EBIT) in 2024 to nine to ten percent. The company had previously forecast six to seven percent, as Embraer announced.

At the same time, the company increased its free cash flow forecast for the current year to at least 300 million US dollars (around 278 million euros), compared to a previous estimate of at least 220 million US dollars.

Nevertheless, Embraer adjusted its expectations for deliveries of commercial aircraft downwards. The new forecast is now 70 to 73 aircraft, whereas previously 72 to 80 units were expected.

Embraer recorded a significant increase in profits in the third quarter. Adjusted net profit rose to 221 million US dollars, compared to 32.9 million US dollars in the same period last year. LSEG analysts had expected a net profit of 74.8 million US dollars. Embraer explained that the higher than expected profit was calculated without extraordinary effects, including USD 50.8 million for deferred taxes and a loss of USD 8.6 million in the Eve unit.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose from USD 149.3 million in the previous year to USD 356.6 million, exceeding analysts' expectations of USD 162 million. Net sales increased to USD 1.69 billion in the third quarter, compared to USD 1.28 billion in the previous year.

https://www.airliners.de/embraer-uebertrifft-gewinnerwartungen-auslieferungsprognose/77678