By Leeham News Team
Feb 27, 2025, © Leeham News: Embraer closed 2024 on a high note, posting record-breaking revenue and strong aircraft deliveries across its commercial, executive, and defense sectors.
The Brazilian aerospace manufacturer reported total revenues of $6.4 billion for 2024, a 21% increase year on year (YoY), reaching the high end of its guidance range. The company’s Defense & Security division saw 40% revenue growth.
The fourth quarter of 2024 was particularly strong, with revenues totaling $2.31 billion. Embraer delivered 75 aircraft during the period, including 31 commercial jets (20 E2s and 11 E1s) and 44 executive jets (22 light and 22 medium).
For the full year, the company delivered 206 aircraft, comprising 73 commercial jets, 130 executive jets, and three C-390 Millennium military transport aircraft. This marked a 14% increase in total deliveries YoY, aligning with its guidance.
Financial results
Embraer’s recent deliveries. Credit: Embraer.
Embraer’s adjusted earnings before interest and taxes (EBIT) reached $265.1 million in Q4, with a 11.5% margin, while EBITDA stood at $328 million. For the full year, adjusted EBIT stood at $708.2 million, equating to an 11.1% margin, and EBITDA stood at $922 million, with a margin of 14.4%.
Excluding Eve Air Mobility, free cash flow reached $995.5 million in Q4 and $675.6 million for 2024, fueled by strong aircraft deliveries and financial gains from the Boeing arbitration.
In December, Moody’s upgraded Embraer’s credit rating from “Ba1” to “Baa3” with a stable outlook.
Embraer’s firm order backlog reached an all-time high of $26.3 billion, more than 40% higher YoY and 16% higher quarter-over-quarter.
Future outlook
In a call with investors, Francisco Gomes Neto, Embraer’s CEO, highlighted ongoing supply chain bottlenecks but said the situation was improving.
He described 2025 as “even better than 2024 in all aspects.”
Looking forward, Embraer projects deliveries of 77 to 85 commercial aircraft and 145 to 155 executive jets.
Total revenue is expected to range between $7–7.5 billion, with an adjusted EBIT margin between 7.5% and 8.3%.
Analysts at J.P. Morgan said 2025 would see “consistent improvement in profitability.”
“We see 2025 guidance as neutral for the stock as despite the continuous growth in deliveries and top line it implies an adj. EBIT of US$525-623 million vs JPMe at US$634 million and consensus of US$632 million, limiting short term upside to EBIT and point to an expansion of up to 12% yoy at the high end and 3% at the mid-point,” the research note said.
Positive start to 2025
Japan’s ANA this week ordered 15 E190-E2s aircraft from Embraer, with options for an additional five aircraft. ANA’s E190-E2 will be the first of the next generation E-Jets to operate in Japan.
Earlier this month, the company’s E-Freighter, the E190F, was confirmed as fully certified by the European Union Aviation Safety Agency (EASA), paving the way for global operations. Full certification from the Federal Aviation Administration (FAA) and the National Civil Aviation Agency of Brazil (ANAC) was achieved in 2024.
And in a significant order, Embraer Executive Jets agreed a purchase agreement with Flexjet including the Praetor 600, Praetor 500 and Phenom 300E models, as well as an enhanced services and support agreement.
The firm order for 182 aircraft and options for another 30 will nearly double the size of Flexjet’s fleet in the next five years in a deal valued at up to $7 billion at current list prices.
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