Photofex/iStock Editorial via Getty Images In September 2022, I put a buy rating on Embraer (NYSE:ERJ) stock and that rating has worked out quite well so far as the stock has appreciated 72% compared to a 25% gain for the broader markets. Since my last report, in which I marked ERJ stock a strong buy, the has gained around 13% which is in line with the broader market performance. In this report, I will be revisiting Embraer stock, and the main reason for that is that Embraer posted 2023 delivery numbers tha ...

The outlook for flying car stocks continues to be bright. Leading names in the space grew rapidly throughout 2023. Joby Aviation (NYSE:JOBY) doubled in price, while Archer Aviation (NYSE:ACHR) nearly tripled. Some forecasts anticipate 2024 will be as strong or stronger with 55% growth. Yet, every fledgling industry primed for rapid growth always suffers the same sort of progression whereby entrants come and go rapidly. The two companies mentioned immediately above are focused and have managed to attract the ...

Executive Aviation posted the largest delivery volume in 7 years C-390 was selected by South Korea, which reinforced sales momentum E2 deliveries more than doubled to 39 jets in 2023 Executive and Commercial Aviation book-to-bill in excess of 1:1 Services & Support backlog reached US$3.1 billion - the highest ever recorded SÃO JOSÉ DOS CAMPOS, Brazil, Jan. 30, 2024 /PRNewswire/ -- Embraer (NYSE: ERJ; B3: EMBR3) delivered 75 aircraft in 4Q23, with 49 executive jets (30 light and 19 medium), 25 commercial ...

Financial Performance - Embraer achieved double-digit revenue growth across all business units, with EBIT and cash flow aligning with expectations[1] - The company's firm order backlog increased due to higher sales in Commercial Aviation[12] - Embraer's 2023 operational and financial guidance remains unchanged[12] - Adjusted EBIT is projected to be between 64% and 74% for 2023[21] - Adjusted EBITDA is projected to be between 100% and 110% for 2023[21] Business Segment Highlights - **Defense & Security:** Revenue increased to US$366 million, with a resilient double-digit adjusted EBIT margin year-to-date[3] - **Defense & Security:** Backlog rose to US$28 billion, the highest on record[3] - **Commercial Aviation:** Backlog rose to US$86 billion with several active sales campaigns[14] - **Executive Aviation:** Revenue increased 25% YoY, with a 21% improvement in adjusted EBIT margin[14] - **Executive Aviation:** Delivery of 28 jets in 3Q23, 22% higher than 3Q22[14] - **Services & Support:** Revenue increased 24% YoY to US$366 million[3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Commission File Number: 001-15102 Embraer S.A. Avenida Dra. Ruth Cardoso, 8501, 30th floor (part), Pinheiros, São Paulo, SP, 05425-070, Brazil (Address of principal executive offices) __________________________________ Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F x Form 40-F ¨ Indicate by check mark if the registrant is submitting the Form 6-K i ...

Financial Performance - Eve Holding restated its financial statements, recognizing a non-cash impact of US$76 million in net results due to warrants, along with US$136 million in other operating expenses related to listing expenses[453]. - In 2022, total revenue reached $4,540.4 million, an increase from $4,197.2 million in 2021, representing a growth of 8.2%[507]. - Commercial Aviation generated $1,543.9 million in revenue in 2022, up from $1,316.4 million in 2021, marking a growth of 17.3%[507]. - Executive Aviation revenue increased to $1,244.4 million in 2022, compared to $1,130.1 million in 2021, reflecting a growth of 10.1%[507]. - Defense & Security revenue decreased to $447.6 million in 2022 from $594.4 million in 2021, a decline of 24.7%[507]. - Services & Support segment revenue rose to $1,266.8 million in 2022, up from $1,132.2 million in 2021, indicating a growth of 11.8%[507]. - Gross profit for the company in 2022 was $912.2 million, an increase from $659.6 million in 2021, representing a growth of 38.2%[507]. - The operating loss before financial results was $110.5 million in 2022, compared to an operating income of $201.3 million in 2021[507]. - Loss for the period increased to US$203.5 million in 2022 from US$43.5 million in 2021, with a net margin of -4.5%[535]. Aircraft Deliveries and Backlog - In 2022, the total aircraft delivered was 218, representing an increase from 200 in 2021 and 176 in 2020[479]. - The backlog of aircraft as of December 31, 2022, totaled 611 aircraft, with a total backlog value of US$17,488.4 million, compared to US$17,039.1 million in 2021[480]. - The Executive Aviation segment delivered 102 jets in 2022, a 9.7% increase compared to 93 jets in 2021[469]. - The Commercial Aviation segment delivered 57 aircraft in 2022, up from 48 in 2021, with the EMBRAER 175 model accounting for 35 deliveries[479]. - The Defense & Security segment faced challenges with a backlog reduction from 43 to 39 aircraft, primarily due to changes in agreements with the Brazilian Air Force[472]. - As of December 31, 2022, the total firm order backlog was $17.5 billion, with $8.6 billion from the Commercial Aviation segment, $3.9 billion from Executive Aviation, $2.4 billion from Defense & Security, and $2.6 billion from Services & Support[595]. Cash Flow and Debt - In 2022, net cash generated by operating activities was US$751.3 million, an increase of 45.8% compared to US$515.3 million in 2021, primarily due to higher contract liabilities and trade accounts payable[540]. - Net cash used in investing activities decreased to US$109.5 million in 2022 from US$131.6 million in 2021, attributed to increased investments in property, plant, and equipment[542]. - Net cash used in financing activities increased to US$669.2 million in 2022 from US$430.6 million in 2021, mainly due to repayment of borrowings[544]. - As of December 31, 2022, total debt was US$3,203.2 million, with 90.4% classified as non-current debt[544]. Research and Development - Research expenses surged to US$110.0 million in 2022 from US$43.0 million in 2021, reflecting increased investment in projects[528]. - Research and development activities are aligned with corporate strategic planning, focusing on technological development and integrated product development[569]. - The company aims to remain competitive by defining a technological development plan to address future challenges in its business segments[571]. - Innovations launched in the last five years accounted for 46% of revenues in 2022, highlighting the importance of innovation for competitiveness and growth[582]. - The company has filed 796 patent applications and has been granted 640 patents as of December 31, 2022, indicating a strong focus on intellectual property development[579]. Market Outlook - Global commercial airline traffic volume recovered to 77% of 2019 levels by December 2022, but aircraft delivery rates remain below pre-COVID levels[467]. - The Commercial Aviation segment is projected to deliver between 65 to 70 aircraft in 2023, compared to 57 aircraft delivered in 2022[603]. - The Executive Aviation segment is expected to see demand surpass 2019 levels in 2023, driven by growth in light and medium-sized jet classes[599]. - The Defense & Security segment is positioned to benefit from increased global defense spending due to heightened international tensions[601]. - Post-pandemic challenges include supply chain delays and a shortage of pilots affecting demand in the Commercial Aviation sector[539]. Corporate Governance - Alexandre Gonçalves Silva has been the chairman since 2011 and has over 40 years of experience, including 22 years as a CEO[622]. - Raul Calfat has been an independent member since 2017 and coordinates the Strategy and Innovation Committee[623]. - Claudia Sender Ramirez, an independent member since 2021, has held leadership roles at LATAM Airlines and is recognized as a Young Global Leader[625]. - João Cox Neto has been an independent member since 2011 and heads the Audit and Risks Committee[629]. - Kevin G. McAllister joined the board in 2021, bringing over 30 years of aerospace industry experience, including leadership roles at Boeing and GE[630]. - Maria Leticia de Freitas Costa has been an independent member since 2017 and coordinates the People and ESG Committee[633]. - Sergio Guillinet Fajerman has been a board member since 2020 and is an Executive Director at Itaú Unibanco[635]. - Pedro Wongtschowski, an independent director, has extensive experience as a CEO in the chemical industry and is involved in the Strategy and Innovation Committee[634]. - Dan Ioschpe has been an independent member since 2020 and is also the chairman of Iochpe-Maxion S.A.[627]. - Dejair Losnak Filho was re-elected in 2021 and has been an employee of Embraer since 2003, contributing to the board as a member[628]. Compensation and Incentives - For the fiscal year ended December 31, 2022, the total compensation paid to board members and executive officers was $7.2 million, with $3.0 million allocated to board members and $4.1 million to executive officers[648]. - The maximum, median, and minimum yearly compensation for individual board members in 2022 were $0.4 million, $0.2 million, and $0.1 million, respectively[651]. - The maximum, median, and minimum yearly compensation for individual executive officers in 2022 were $1.6 million, $0.4 million, and $0.4 million, respectively[651]. - In 2022, the company contributed $0.1 million for pension benefits for executive officers, while board members and fiscal council members did not receive such benefits[650]. - The company adopted a long-term incentive plan in February 2014, granting virtual shares to attract and retain qualified staff, with amounts based on market conditions[652]. - The company has a comprehensive executive profit-sharing plan that provides variable compensation based on performance, limited to a percentage of net income[647].

| --- | --- | --- | --- | --- | --- | --- | |-------|------------|-------|---------|-------|-------|-------| | | d and the | | | | | | | | and 11 4 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | EMBRAER | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INVESTOR RELATIONS | --- | --- | --- | --- | --- | --- | --- | |---------------------- ...

Financial Data and Key Metrics Changes - The firm order backlog ended Q3 2022 at $70.8 billion, an increase of $1 billion compared to the same period last year, marking one of the highest backlogs since the pandemic began [13] - Revenue for Q3 2022 reached $929 million, down $30 million from Q3 2021, primarily due to lower revenue in defense and security [13] - Consolidated gross margin improved to 20.9% in the first nine months of 2022, up from 16% in the same period of 2021 [14] - Adjusted EBIT and EBITDA for Q3 2022 were $50 million and $93 million respectively, yielding adjusted EBIT and EBITDA margins of 5.4% and 10% [15] Business Line Data and Key Metrics Changes - In commercial aviation, 33 jets were delivered in Q3 2022, including 10 commercial jets and 23 executive jets, with a total of 27 commercial and 52 executive jets delivered year-to-date [12] - The gross margin in commercial aviation improved to 10% from 3.2% in the previous year [8] - Executive aviation delivered 23 jets in Q3 2022, a 10% increase compared to the same quarter last year, with a gross margin of 20.6% for the first nine months [8] - The service and support business achieved a gross margin of 29.9% in the first nine months of 2022, up from 26.4% in 2021 [10] Market Data and Key Metrics Changes - The company expanded its presence in the Middle East with a new operator, SalamAir, which ordered 6 E195-E2 jets [8] - The China Aviation Authority granted certification for the E190-E2, opening a significant market for the E2 family [8] Company Strategy and Development Direction - The company is focused on mitigating production challenges while maintaining a strong emphasis on safety and quality [6] - There is confidence in achieving revenue and profitability growth in the coming years, with production slots for 2023 and 2024 nearly filled [21] - The company is working on various activity campaigns with good prospects for new orders across all business units [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain constraints, particularly with engines, avionics, and interiors, which are expected to improve gradually [39] - The company remains cautious about delivery guidance, anticipating being at the lower end of the range due to supply chain issues [40] - Management expressed optimism about the midterm future, citing a focus on enterprise efficiency and innovation projects [21] Other Important Information - The company reported a negative free cash flow of $109 million in Q3 2022, attributed to higher working capital needs for increased deliveries in Q4 [17] - Total debt was reduced to $3.1 billion, down $808 million year-to-date, aligning with the company's liability management strategy [18] Q&A Session Summary Question: Long-term view on Eve - Management remains excited about the Eve project, with over 200 engineers dedicated to its development, viewing it as a significant innovation for long-term growth [25] - The company is locked into agreements for the next two years, with no immediate plans for monetization [26] Question: Delivery expectations for 2023 and 2024 - Management anticipates double-digit growth for both commercial and executive jets in 2023, with a positive outlook for future deliveries [29] Question: Cash flow expectations for Q4 - The implied cash flow for Q4 is projected at $250 million, with management cautious due to potential delivery risks [32][33] Question: Supply chain weaknesses - Management highlighted ongoing supply chain issues, particularly with engines and avionics, which are expected to persist into 2024 [39] Question: Services and support margins - Services and support are expected to maintain strong EBIT margins in 2023, driven by a growing fleet [44] Question: Pilot shortage impact in the U.S. - The pilot shortage is affecting E1 deliveries, but there is strong demand for E2 jets, with expectations for improvement in the pilot situation by 2024 [49]

Financial Data and Key Metrics Changes - The total sales for the company reached $6.6 billion in 2021, contributing to cash generation with advanced payments from clients [8] - Fourth quarter net revenue was $1.3 billion, down 41% year-on-year, while net revenue for 2021 was $4.2 billion, up 11% from the previous year [23][24] - Adjusted EBIT improved to $167 million compared to a loss of $111 million in 2020, and adjusted EBITDA was $363 million compared to $82 million in 2020 [26] - The company ended the year with $2.6 billion in cash and cash equivalents, and total debt was $4 billion, with a net debt reduction of $300 million in 2021 [31] Business Line Data and Key Metrics Changes - In Commercial Aviation, 16 jets were delivered in Q4 and 48 jets in 2021, marking a 9% year-on-year increase [15] - Executive Aviation delivered 39 jets in Q4, totaling 92 jets for the year, with a book-to-bill ratio exceeding 2:1 [16] - The Defense & Security unit saw a backlog reduction of $526 million due to an agreement with the Brazilian Air Force, impacting operational results [17] - Services & Support reached pre-pandemic levels with a backlog increase of over 20% year-on-year, and an adjusted EBIT margin of 16.7% in Q4 [19] Market Data and Key Metrics Changes - The company reported that 92% of total revenue comes from exports, indicating strong global outreach [24] - The backlog reached $17 billion, an 18% increase year-on-year, marking the highest value since Q2 2018 [22] Company Strategy and Development Direction - The company focuses on four strategic pillars: growth, enterprise efficiency, innovation, and ESG initiatives [6][12] - The company aims for carbon neutrality by 2040 and net zero by 2050, with specific targets for diversity and governance [13] - The company is optimistic about the urban air mobility sector, with plans for a listing on the New York Stock Exchange [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic planning, noting that cash generation exceeded expectations [6] - The company anticipates a positive net result for 2022, driven by revenue growth and improved fixed cost leverage [30] - Management acknowledged challenges from the Russia-Ukraine conflict but indicated that supply disruptions are not expected in the midterm [36] Other Important Information - The adjusted free cash flow in 2021 was $292 million, significantly above the $100 million outlook [29] - The company is targeting a delivery range of 60 to 70 aircraft for Commercial Aviation and 100 to 110 jets for Executive Aviation in 2022 [33] Q&A Session Summary Question: Guidance for 2022 by segment - Management indicated that Commercial Aviation is expected to reach breakeven EBIT margin, while Executive Aviation will maintain high single-digit margins [39][40] Question: Free cash flow assumptions - The free cash flow guidance includes stable working capital and contributions from divestitures, with a target of $50 million or better [44] Question: Impact of higher commodity prices - Management is closely monitoring price movements and has established escalation clauses in contracts to mitigate risks [60] Question: Order visibility and campaigning activity - The company is actively engaged in sales campaigns and expects domestic markets to be less affected by external pressures [64] Question: Future adjusted EBITDA margins - Management aims for mid-single-digit margins in the mid-term, with potential for higher margins when including services [65][66]