Embraer delivered 80 jets in the fourth quarter, of which 30 commercial aircraft and 50 executive jets (33 light and 17 mid-size). In 2022, a total of 159 jets were delivered of which 57 commercial aircraft and 102 executive jets (66 light and 36 mid-size). Embraer increased the number of aircraft delivered by 12.7% compared with 2021, even with significant supply chain constrains.

• Commercial Aviation reported revenue growth of 17% y-o-y to US$ 1,543.9 million due to additional 9 deliveries in 2022. Reported gross margin of 10.5% versus 4.0% reported in 2021 shows, a 6.5% improvement due to higher deliveries, positive contribution from price and cost balance and one time action.
• Executive Aviation revenues were US$ 1,244.4 million, 10% higher y-o-y, driven by 9 additional aircraft delivered compared to 2021. Reported gross margin of 23.4% versus 18.3% reported in 2021 due to better cost absorption on higher volume and one time action.
• Defense & Security revenue of US$ 447.6 million, 24.7% lower y-o-y due to less Super Tucanos delivered in 2022. Reported gross margin of 21.6% versus 17.8% reported in 2021.
• Services & Support reported revenues of US$ 1,266.8 million, representing y-o-y growth of 12%. Reported gross margin of 28.0% higher than 26.9% reported in 2021, bolstered by revenues from “pay by the hour” components in Commercial Aviation and by market share growth in Executive Aviation.

COMMERCIAL AVIATION

In 4Q22, Embraer delivered 30 commercial jets.

Highlights of sales in 2022 include deals with Porter Airlines (which increased the number of firm orders for E195-E2 aircraft by 20, for a total of 50 firm orders), Alaska Air Group (which ordered 8 new E175 jets to operate with Horizon Air and options for another 13 units), SalamAir (with 6 confirmed orders of E195-E2 jets), Binter (which ordered 5 new E195-E2 jets) and 21 aircraft sold to undisclosed customers that result in 60 aircraft sold in the year.
The year also saw the start of the E190 and E195 commercial aircraft conversion programs for cargo transport (E190F and E195F) and the successful testing of an E195-E2 aircraft on 100% sustainable fuel in a flight of about 70 minutes, done in collaboration with Pratt & Whitney.
Finally, Embraer received Type Certification for its E190-E2 jet from the Civil Aviation Administration of China (CAAC), opening new potential in the country.

EXECUTIVE AVIATION
Executive Aviation delivered 33 light and 17 mid-size jets, totaling 50 aircraft in 4Q22 and 102 jets in 2022 an 9.7% y-o-y increase.

Embraer’s leadership in the light and mid-sized business jet segment continued in 2022. The Phenom 300 Series retained its title of the best-selling and most delivered light jet for the 11th consecutive year, with 59 deliveries and a 33% share of the light jet market. In the super mid-size segment deliveries of the Praetor 600 increased over 23% and market share grew to 19%. In total, Embraer’s 102 deliveries represent a 10% year-over-year growth in deliveries and is among the highest of its peers. New aircraft sales in 2022 remained strong, with the Executive Aviation backlog ending 2022 at US$ 3.9 Billion, up 34% compared to 2021. 
 

DEFENSE & SECURITY
Defense & Security’s net revenue fell by US$ 146.8MM from 2021, mostly because of the delivery of 5 Super Tucanos to an undisclosed customer in 2021. Due to of their different level of execution, contracts in this segment with POC revenue recognition also made more progress in 2021 than in 2022, as they are currently in the final stage of work.
Even after accounting for the effects of the additive term of the Brazilian Air Force (FAB) contract, which reduced the total number of aircraft from 22 to 19 and altered contractual clauses to maintain the contract’s financial and economic balance, the KC-390’s revenue was virtually identical to that of 2021. The performance of the KC Hungary contract was better than the previous year, which countered the revenue reversal effect for the KC390.

Release Embraer
Photo Jeroen Vogelaar