SAO PAULO (Reuters) – Brazilian planemaker Embraer on Friday reported an adjusted net loss of 179.7 million reais ($32 million) in the third quarter, from an adjusted net loss of 797.5 million reais a year earlier, noting that its free cash flow has “significantly improved” compared with the same period of 2020.
The company said it has revised upward its free cash flow guidance for the full year of 2021 to $100 million or more, from a previous forecast of negative $150 million to zero.
According to Embraer, this was the first time in more than 10 years that the company has reported positive free cash flow in a third quarter. It said that the improvement comes from better profitability and working capital efficiency.
The planemaker also reported quarterly net revenue of 5.01 billion reais, up 22% year-on-year, supported by double-digit growth across all of its business segments.
“Embraer expects deliveries and revenues to grow and remain within normal seasonal patterns in the fourth quarter of 2021, leading to another quarter of positive free cash flow,” Embraer said in a statement.
The company also said its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 410.7 million reais in the third quarter, up from a negative 40.7 million reais a year earlier.
($1 = 5.6020 reais)
(Reporting by Gabriel Araujo; Editing by Raissa Kasolowsky and Emelia Sithole-Matarise)
