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Embraer reports strong 2024 with positive 2025 guidance

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Embraer reported its 2024 results today, along with management guidance for 2025. 

Highlights of their 2024 results include:

  • Revenues of $6,394.7 in 2024 million, up 21% from $5,268.5 million in 2023
  • Adjusted EBITDA of $921.6 million, up 64% year-over-year from $561.9 million
  • Adjusted EBTDA margin of 14.4% versus 10,7% last year
  • Adjusted Net Income of $461.6 million, versus $79.5 million in 2023
  • Adjusted free cash flow without Eve

    of $675.6 million versus $318.3 million in 2023

  •  The company ended the year with a record backlog of $26.3 billion,
  • $10.2 billion backlog in Commercial Aviation
  • $7.4 billion backlog in Executive Jets, 
  • $4.6 billion in backlog from Services and Support, 
  • $4.2 billion backlog from Defense and Security.  
  • Backlog increased 41% during the year, reaching a 2.2 book to bill ratio.  

Deliveries

  • Commercial Aviation deliveries totaled 73 in 2024, up from 64 in 2023
  • Executive Aviation deliveries totaled 130, versus 115 in 2023
  • Defense and security had 3 C-390 deliveries in 2024 versus 2 in 2023

Guidance for 2025

Management provided guidance for 2025 that includes between 77 and 85 commercial aircraft, between 145 and 155 executive aircraft, revenues in the $7 to $7.5 billion range, adjusted EBIT margin between 7.5% and 8.3%,  and adjusted free cash flow of over $200 million.  

Embraer is currently enjoying stronger sales for its E2 jets, capturing an order earlier this week from All Nippon Airlines.  The company has won several orders in Europe for the NATO version of the C-390 and is a finalist for several potentially large procurements due this year.  In business aviation, the Phenom remains the best selling business jet in its class for the 13th year, and the Praetor is now capturing 40% of the mid-size market.  The outlook for Embraer is positive  in all segments looking ahead to 2025.

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