SAO PAULO, BRAZIL - The company's operating and financial information is presented, except where otherwise stated, on a consolidated basis in United States dollars (US$) in accordance with IFRS. The financial data presented in this document as of and for the quarters ended June 30, 2022 (2Q22), March 31, 2022 (1Q22), December 31, 2021 (4Q21) and June 30, 2021 (2Q21), are derived from the unaudited financial statements, except annual financial data and where otherwise stated.
Firm order backlog ended 2Q22 at US$ 17.8 billion (+US$0.5 billion versus 1Q22). This is the highest quarter backlog post pandemic, driven by solid order activity. Recent announcement of 20 E195-E2 firm order of Porter will be included in 3Q22 backlog.
Reported 2Q22 consolidated gross margin of 22.9% higher than 18.2% reported in 2Q21, with y-o-y improvement in most segments due to product mix, pricing increase and overall operational performance, including tax efficiencies.
Adjusted EBIT and EBITDA were US$ 81.2 million and US$ 124.6 million, respectively, yielding Adjusted EBIT margin of 8.0% and Adjusted EBITDA margin of 12.2%.
In 2Q22, Embraer reported Adjusted Net Income (excluding deferred taxes and special items) of US$ 39.4 million and Earnings per Share of US$ 0.40.
Free cash flow (FCF) in 2Q22 was a surplus of US$ 91.2 million, representing a significant improvement compared to the US$ 45.1 million in FCF in 2Q21, supported by divestment of Évora’s facilities and EVE’s IPO offset by working capital needs and liability management strategy.
The company finished the quarter with net debt of US$ 1.198 billion, or US$ 0.255 billion less than 1Q22 in line with the strategy to improve our capital structure and liability management.
Embraer delivered 8 Embraer 175 to SkyWest and 3 Embraer 195-E2 to Aircastle and ICBC. In the 2Q22, NAC was announced as the E-Jets Freighter launch lessor, after signing an LOI of up to 10 P2F conversions and additional undisclosed customer signed a firm order of up to 10 P2F conversions. Embraer and Pratt & Whitney successfully tested a GTF-powered E195-E2 aircraft on 100% SAF, the first step in the certification process to maximize emission reduction with the use of Sustainable Aviation Fuels.
Executive Aviation delivered 21 aircraft (12 light and 9 mid-size jets) in the second quarter 2022. Deliveries were higher than 2Q21 and sales continued strong in the quarter with sales orders exceeding prior year levels. The book-to-bill ratio remains above 2.5 to 1, the highest in the industry. Growth in the light and mid-sized business jet segments continues. Embraer Executive Aviation is well positioned to capitalize on this growth, with strong product performance and increased customer demand.