Brazil planemaker Embraer's subsidiary Eve expects gross profit margin of 25% -CFO

1 minute read
Register now for FREE unlimited access to Reuters.com

SAO PAULO, Feb 1 (Reuters) - Eve, a subsidiary of Brazil planemaker Embraer SA (EMBR3.SA), is expecting to report a gross profit margin of 25% when its electric vertical take-off and landing aircrafts (eVTOLs) start operating in 2026, said the company's chief financial on Tuesday.

"We also expect an earnings margin before interest, taxes, depreciation and amortization (EBITDA) of 15% to 20%," said Eduardo Couto during an online event organized by Credit Suisse. The executive did not provide more details.

Eve's Chief Executive Andre Stein said that the company has an order backlog of 1,735 vehicles, equivalent to $5.2 billion. The amount is more than the company's market valuation of $2.4 billion, according to Couto.

In December, Embraer agreed to combine Eve with Zanite SPAC and list it on the New York Stock Exchange. The firm is expected to start trading in the second quarter of 2022, after the closing of the deal with Zanite. read more

Register now for FREE unlimited access to Reuters.com
Reporting by Alberto Alerigi Jr.; Writing by Peter Frontini

Our Standards: The Thomson Reuters Trust Principles.