SAO PAULO (Reuters) -Brazilian planemaker Embraer on Monday kept its outlook for the full year unchanged but acknowledged it might be closer to meeting the low end of its delivery target range as it continues to grapple with supply chain issues.
Embraer will need to deliver at least 26 commercial and 54 executive jets in the final three months of the year to meet its goals, nearly in line with the performance it posted in the same period of last year.
“We have a big challenge for deliveries in the fourth quarter, but as we demonstrated in the fourth quarter of 2022, we are prepared for it,” Chief Financial Officer Antonio Carlos Garcia told a conference call with analysts.
The CFO said Embraer was probably closer to the low end of its delivery outlook but noted that financial metrics were “robust”, saying the firm was very confident about meeting its forecast for a free cash flow of $150 million or more this year.
The world’s third-largest planemaker behind Boeing and Airbus has been grappling with engine supply issues, which forced it to move some deliveries initially expected for the third quarter to the next one, Garcia said.
Embraer earlier in the day reported third-quarter adjusted net income of $32.9 million, up 34% from a year earlier, with net revenue jumping 38% in the period to $1.28 billion.
The firm, which is targeting $5.2 billion-5.7 billion in net revenue this year, said it managed to post double-digit revenue growth across all its four units in the quarter – also including defense & security and services & support.
TD Cowen analysts led by Cai von Rumohr said the results were “decent” and beat forecasts despite “slightly light sales”, highlighting the positive free cash flow even when electric aircraft subsidiary Eve is included.
Embraer delivered 43 aircraft in the quarter that ended in September, up 30% from the same period of 2022, including 15 commercial and 28 executive jets.
CEO Francisco Gomes Neto told Reuters last month that the firm was confident it would meet its outlook for aircraft deliveries in 2023, seen growing by about a quarter, and expects to be able to maintain that pace next year.
($1 = 4.9007 reais)
(Reporting by Gabriel Araujo; Editing by Louise Heavens, David Goodman, Chizu Nomiyama and Jan Harvey)