Embraer releases Q4/FY 2017 results

Embraer S.A. (NYSE: ERJ; B3: EMBR3) has released its fourth quarter and fiscal year 2017 results, the company said.

Embraer delivered 23 commercial jets and 50 executive jets (32 light / 18 large) in 4Q17, and in 2017 delivered 101 commercial jets and 109 executive (72 light / 37 large) jets, meeting Guidance for 2017;

Revenues in 4Q17 reached USUSD 1,733.0 million and in 2017 were USUSD 5,839.3 million, within the company´s Guidance range of USUSD 5.7 to USUSD 6.1 billion;

Adjusted EBIT and adjusted EBITDA excluding special items were USUSD 132.7 million and USUSD 220.3 million, respectively, in 4Q17, yielding margins of 7.7% and 12.7%. Adjusted EBIT and adjusted EBITDA exclude USUSD 66.0 million in net non-recurring charges in 4Q17, mostly related to impairments in the Executive Jets and Defense & Security segments.

For the full year, adjusted EBIT and adjusted EBITDA were USUSD 397.1 million and USUSD 712.5 million, respectively, excluding USUSD 67.8 million in net non-recurring charges. For 2017, adjusted EBIT margin was 6.8% and adjusted EBITDA margin was 12.2%, which were below the company´s guidance;

Embraer closed 2017 with adjusted free cash flow generation of USUSD 406.7 million in 4Q17, resulting in positive 2017 free cash flow of USUSD 404.8 million, significantly above the company´s initial expectations for the year of free cash flow consumption of USUSD (150) million or better. Embraer finished 2017 with net debt of USUSD 310.8 million, an improved position versus net debt of USUSD 574.7 million at the end of 2016;

4Q17 Net income attributable to Embraer shareholders and Earnings per ADS were USUSD 35.2 million and USUSD 0.19, respectively. Adjusted net income (excluding the impact of FX-related non-cash deferred income tax and social contribution and non-recurring items) for the quarter was USUSD 58.3 million, representing adjusted earnings per ADS of USUSD 0.32 in 4Q17.

Adjusted net income for 2017 was USUSD 279.7 million, representing adjusted earnings per ADS of USUSD 1.52 for the year.