Embraer released fourth quarter and fiscal year 2015 results. In Q4, the company delivered 33 commercial and 45 executive (25 light and 20 large) jets.
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Embraer ended 2015 with 101 total commercial aircraft deliveries, surpassing 2015 guidance. Total executive jet deliveries of 120 aircraft (82 light and 38 large) met the executive jet deliveries Guidance for 2015,
Revenues in Q4 2015 reached $2,074.4 million and in 2015 were $5,928.1 million, also meeting the company’s 2015 revenue guidance range of $5.8 to $6.3 billion.
EBIT and EBITDA margins were 3.1% and 7.9%, respectively, in Q4 2015, and for fiscal year 2015 the EBIT and EBITDA margins were 5.6% and 10.9%, respectively.
Excluding provisions related to the Chapter 11 filing of Republic Airways Holdings, EBIT and EBITDA margins in Q4 2015 were 8.0% and 12.8%, respectively, and for fiscal year 2015 EBIT and EBITDA margins excluding these items were 7.3% and 12.6%, respectively.
EBITDA margin excluding these provisions met the Guidance range of 12.6% to 13.6% for the year, though EBIT margin was below Guidance;
Free cash flow was strong in Q4 2015, at $660.0 million, and 2015 free cash flow was $177.8 million. Free cash flow was better than 2014 free cash flow usage of $(403.6) million. Embraer also finished 2015 with net cash of $7.2 million vs. net debt of $38.7 million at the end of 2014;
Q4 2015 net income attributable to Embraer shareholders and earnings per ADS totaled $111.2 million and $0.6091 ($29.7 million and $0.1627 per share excluding deferred tax and provisions relating to Republic’s Chapter 11 filing), respectively, and 2015 net income attributable to Embraer shareholders and Earnings per ADS totaled $69.2 million and $0.3787 ($272.0 million and $1.49 per share excluding these items).
Company guidance for 2016 is for net revenues of $6.0 to $6.4 billion. This guidance is driven by expected deliveries of 105 to 110 jets in Commercial Aviation and 40 to 50 large jets and 75 to 85 light jets in Executive Jets, with Defense & Security revenues of $0.7 to $0.75 billion for the year. ■