EVEX - Embraer Revenue Declines On Shutdown Eve De-SPACs

• Embraer is a pretty interesting company with exposure to the small cabin private jet market.
• On the other side is a regional commercial aviation business and also defense, with a recent de-SPACing of Eve Holding a new-age mobility company at a high value.
• A factory shutdown has meant meaningful revenue declines, but backlog growth offsets that for the year-long picture and is just a blip.
• Markets holding surprisingly strong, and cost saving achieved at the gross margin level.
• Support and services revenue picking up is a strong signal for mobility, and restores a high margin business. Overall, Embraer is technically undervalued and is watch-listed despite leverage risk.

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