Embraer(US:ERJ)2023-03-30 16:00Financial 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].