What happened

Embraer (ERJ -0.07%) lost more money in the first quarter of 2023 than it did in the same three months of 2023. Investors reacted poorly to the results, sending shares of the aircraft manufacturer down as much as 10% on Thursday.

So what

The first quarter is typically the slowest for Embraer, and 2023 proved to be no exception. The company posted an adjusted net loss of $88.9 million in the quarter, down from a loss of $75.3 million a year ago. Revenue came in at $717 million, well short of the $854 million consensus estimate.

Free cash flow was also negative. Embraer used nearly $400 million in cash in the quarter, with much of the negative outflow investments ahead of an expected boost in deliveries in the second half of 2023. The company delivered just 15 jets in the first three months of 2023: seven commercial aircraft and eight business jets.

Total book-to-bill for the quarter was 0.9x, meaning that Embraer brought in slightly less business than it billed out. The result was weighed down by the commercial business, where cancelations took their toll, with business jet book-to-bill a healthy 2.5x and defense about even.

Now what

To some extent this was expected. However, Embraer didn't give investors a lot of reason to get excited. The company did reiterate its full-year sales guidance, and said it expects 65 to 70 commercial deliveries and 120 to 130 business jet deliveries in 2023.

The bottom line is no reason to believe Embraer is in trouble, but also no reason to believe the company, and the shares, will spike higher any time soon.