Embraer S.A. (NYSE:ERJ) Q1 2024 Earnings Conference Call May 7, 2024 8:00 AM ET
Company Participants
Guilherme Paiva - Head, IR
Francisco Gomes Neto - President & CEO
Antonio Carlos Garcia - EVP, Financial & IR
Andreza de Souza Alberto - VP, People
Conference Call Participants
Gabriel Rezende - Itau BBA
Myles Walton - Wolfe
Ron Epstein - Bank of America
Victor Mizusaki - Bradesco BBI
Marcelo Motta - J.P. Morgan
Stephen Trent - Citi
Lucas Barbosa - Santander
Kristine Liwag - Morgan Stanley
Noah Poponak - Goldman, Sachs
Operator
[Technical Difficulty]
quarter-over-quarter and a strong 2:1 book-to-bill for the quarter.
We recorded our first set of firm orders from NetJets, with deliveries will begin in 2025. In total, NetJets has purchased rights for 250 aircraft over the next 14 years.
In Defense & Security, we hosted the first Embraer Defense Day in the U.S. with C-390 Millennium and the A-29 Super Tucano. The event included a diverse guest list of government authorities, military officials, prospects and partners. In early 2024, Embraer in Mahindra sign MoU to jointly pursue the sale of the C-390 Millennium to the Indian Air Force.
The first Hungarian C-390 successfully completed its maiden flight. The aircraft continues to receive international recognition on the back of its remarkable operational performance and capabilities.
We should note the division reported lower year-over-year revenues because of supply chain delays and business seasonality.
In Services & Support, revenue grew 12% compared to the same period last year with solid double-digit profitability. The business reality backlog maintains the historical $3.1 billion record reached in Q4 2023 with a 10% plus EBIT margin. Another important step for our Services division was the induction of the first product GTF 1100 engine in OGMA. Our MRO in Portugal, the ramp up should last four years and we expect revenues to reach closer to $500 million in 2028.
Last but not least, EVE, our EVE business is on track to achieve important milestones in 2024. We have already selected now more than 90% of its component suppliers and we successfully concluded a Urban Air Traffic Management trial. The company is on track to accomplish the next development test, first prototype assembly conclusion, initial test and the definition of certification basis. We also began the definition of our EVE found factory configuration. All-in, we estimate EVE should have a total cash consumption between $130 million and $170 million in 2024.