In 4Q16, Embraer delivered 32 commercial and 43 executive jets. The company ended 2016 with 108 total commercial aircraft deliveries and 117 executive jet deliveries, both in line with guidance.
Revenue rose 4%, to $6.2bn, at the top end of the company’s 2016 Revenue Guidance range of $5.8-6.2bn. Adjusted net income improved 6.8%, to $290.5m. Adjusted EBIT and EBITDA margins were 8.0% and 13.3%, respectively, vs. 7.3% and 12.1% the previous year.
The firm order backlog declined by $2.9bn during 2016, ending the year at $19.6bn.
For 2017 the company is aiming for total revenue of $5.7-6.1bn, driven by expected deliveries of 97 to 102 jets in Commercial Aviation and 105 to 125 total jet deliveries in Executive Jets.
Entry into service of the first EJets E2 model, the E190-E2, is scheduled for the first half of 2018. Deliveries of the E175 jet model are expected to continue to represent the majority of 2017 deliveries.
For the Executive Jets segment, Embraer says it remains cautiously optimistic, with a still challenging market for pre-owned aircraft affecting demand for new executive jets. The total new aircraft market is expected to be relatively flat, while the company works to improve the segment’s profitability through cost-cutting initiatives.