Embraer S.A. (NYSE:ERJ) Q2 2023 Earnings Call Transcript

Francisco Gomes Neto: I mean, 2023 is expected to be the year with the highest number of E2 deliveries since the program was launched. We believe the E2 family is on the rise in the market and this is going to be in the following years as well. So we expect to be with between 90 and 100 total aircraft deliveries by 2025 and most of them will be E2s. So again, we see the E2 family growing faster, much faster than E2 in the following years and we’re expecting ’25, ’26 to be combining E2s in one — I mean, over 100 aircrafts a year as we had pre-pandemic levels.

Q – Ron Epstein: And then just a quick follow-up on the Super Tucanos. I’m surprised that you’re having some trouble there, be it that the airplane has been in fabrication for a very long time. I mean, if you can describe maybe a little more what’s going on?

Francisco Gomes Neto: Well, we produce Super Tucanos in Brazil and in Jacksonville as well, so we have opportunities. We are working on sales campaigns for both sides. So in Brazil, we expect to announce this year important orders, as Antonio just mentioned, to deliver the white tails we have in production. In the Jacksonville plants, we are also working with our partner there, Sierra Nevada, to sell aircraft to some other countries using the FMS support. So again, we expect to announce new orders for Super Tucano as well as the C-390 in the second half of the year.

Operator: Our next question comes from Marcelo Motta from JPMorgan.

Marcelo Motta: A question regarding this new order that you guys mentioned about $700 million that will be add to the backlog of Commercial in the third quarter. Could you provide any additional detail in addition to what is on the release, like the number of aircraft or the family or maybe, let’s say, the continent that this order is coming from?

Francisco Gomes Neto: This order is still confidential and we promise to you to disclose as soon as we have an agreement with the customers.

Operator: Our next question comes from [indiscernible] from Bradesco BBI.

Unidentified Analyst: So my question is regarding Eve. So the FAA recently published the ’28 plan, which forsees eVTOLs for any operations only in 2025 but mostly in 2028. And some eVTOL companies had plans to start operations in 2024. My question is, EVE was already a leader in the number of orders or at least close to it. But given this projection by the FAA closer to two weeks launch date, do you see a greater interest now from the part of the customers for Eve solution compared to competitors?

Francisco Gomes Neto: Yes, absolutely, we do more interest in that new business model. Let’s put it like that. We are working very hard. We have more than 600 people working the development of the Eve and we are lucky to have a respectful authority in Brazil as ANAC and we are in contact with them. We are working with them in order to certify both the aircraft and the air traffic management in Brazil. And with the work progressing well with ANAC, we will have more chance to do the same with FAA and EASA as well. So again, we are very excited about that and Eve is progressing well to certify and entering service by 2026.

Operator: Our next question comes from [Jai Singh] from Citi.

Unidentified Analyst: Can you provide us with any color regarding any product developments?

Francisco Gomes Neto: Could you please repeat?

Unidentified Analyst: Can you provide us with any color regarding product developments at the moment?

Francisco Gomes Neto: You mean new product development?

Unidentified Analyst: Correct.