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

Francisco Gomes Neto: We are having [difficulties] with engines for Executive jets as well. But I mean, our supplier is improving, we believe that we will do much better from now on. I mean, since they are resolving some issues with their sub [service] suppliers. MRO, I mean, it’s another opportunity for us to grow our business. We duplicate this [Sorocaba]. We are working also to expand also other MROs, I mean, the US and in Europe. I mean, it’s another good opportunity for us to grow. And we don’t see big issues with engines in the future. As I said, we believe by the end of the year, I mean first quarter or second quarter next year, the situation with the engines will be, I mean, totally normalized for Executive jets.

Operator: Our next question comes from Cai from Cowen.

Cai von Rumohr: No one’s asked for a while, but the arbitration with Boeing, their 10-Q indicates that they expected, I guess, about year end. When do you expect that arbitration decision, will it be binding and are you optimistic this will still be a net plus for Embraer?

Francisco Gomes Neto: Well, the process had some delays because of the complexity. But Cai, we expect to see an end of this process during the first half 2024.

Operator: This does conclude today’s question-and-answer session, and that does conclude Embraer’s audio conference, too. Thank you for your participation, and have a wonderful day.