Embraer returns to profit, restores guidance as travel recovers By Reuters

SAO PAULO (Reuters) – Embraer SA (NYSE:) posted its first quarterly recurring profit in more than three years and resumed guidance on Friday as the Brazilian planemaker benefits from a partial recovery in travel.

It posted a second-quarter net income of 212.8 million reais ($40.51 million), its first recurring profit since the first quarter of 2018.

A year earlier Embraer posted a loss of 1.071 billion reais and was scrambling to restructure operations to contend with the pandemic and a failed $4 billion deal with Boeing (NYSE:) Co.

The second quarter of last year was particularly brutal for planemakers, and Embraer saw the vast majority of its commercial aircraft revenue vanish as airlines deferred orders.

Still, on Friday Embraer suggested it may be turning a page.

Chief Financial Officer Antonio Carlos Garcia said in a statement that uncertainty remains high but vaccinations are improving confidence among consumers.

Embraer said revenue grew to $5.922 billion, more than doubling from a year earlier.

Given its more optimistic outlook for travel, Embraer decided to give forward guidance for its operations this year, which it suspended when the pandemic began.

The company sees commercial deliveries at between 45 and 50 planes, and executive aviation deliveries at 90 to 95.

Revenue is likely to be between $4 and $4.5 billion, with an adjusted margin EBITDA of 8.5%-9.5%. Free cash flow should be at breakeven with a cash burn of up to $150 million seen this year.

($1 = 5.2536 reais)