Embraer-empresa Brasileira De Aeronautica ( (ERJ) ) has released its Q4 earnings. Here is a breakdown of the information Embraer-empresa Brasileira De Aeronautica presented to its investors.
Embraer, a leading Brazilian aerospace company, operates in the Commercial and Executive Aviation, Defense & Security, and Agricultural Aviation sectors, designing, manufacturing, and marketing aircraft and systems globally.
Embraer’s latest earnings report reveals a strong financial performance for the fourth quarter and fiscal year 2024, with revenues reaching a record high of $6.395 billion, marking a 21% increase year-over-year. The company also reported an adjusted EBIT of $708.2 million, surpassing its guidance, and a significant improvement in its net debt-to-EBITDA ratio, which decreased to 0.1x from 1.4x in 2023.
Key highlights include a 40% year-over-year increase in Defense & Security revenues and a firm order backlog of $26.3 billion, the largest in Embraer’s history. The company delivered 206 aircraft in 2024, a 14% increase from the previous year, with strong performances across all business units. Moody’s upgraded Embraer’s credit rating to ‘Baa3’ with a stable outlook, reflecting the company’s improved financial health.
Looking ahead, Embraer has set ambitious guidance for 2025, projecting commercial aviation deliveries between 77 and 85 aircraft and executive aviation deliveries between 145 and 155 aircraft. The company expects revenues in the range of $7.0 to $7.5 billion, with an adjusted EBIT margin between 7.5% and 8.3%, and aims for an adjusted free cash flow of $200 million or higher, indicating a positive outlook for continued growth and financial stability.