Summary
On February 27, 2025, Embraer SA (ERJ, Financial) announced its fourth quarter and fiscal year 2024 earnings results, showcasing a robust financial performance. The company reported record revenues and a significant increase in deliveries across its commercial and executive aviation segments. Embraer also provided optimistic guidance for 2025, projecting continued growth in aircraft deliveries and financial metrics.
Positive Highlights
- Record revenues of $2,311 million in Q4 2024 and $6,395 million for the year, marking a 21% year-over-year increase.
- Adjusted EBIT margin reached 11.5% in Q4 2024, with a full-year margin of 11.1%, surpassing guidance.
- Adjusted free cash flow of $995.5 million in Q4 and $675.6 million for 2024, supported by strong sales and Boeing arbitration.
- Net debt-to-EBITDA ratio improved to 0.1x, with Moody's upgrading Embraer's credit rating to "Baa3" with a stable outlook.
- Record firm order backlog of $26.3 billion, a 40% year-over-year increase.
Negative Highlights
- No significant negative highlights were reported in the press release.
Financial Analyst Perspective
Embraer SA's financial results for 2024 demonstrate a strong recovery and growth trajectory, with significant improvements in revenue, profitability, and cash flow. The company's ability to exceed its guidance in key financial metrics, coupled with a substantial order backlog, positions it well for sustained growth. The upgrade in credit rating further enhances its financial stability and attractiveness to investors.
Market Research Analyst Perspective
Embraer's performance in 2024 reflects a robust demand for its aircraft across both commercial and executive segments. The company's strategic focus on expanding its product offerings and enhancing operational efficiency has yielded positive results. The record order backlog indicates strong market confidence in Embraer's products and services, suggesting a favorable outlook for the aerospace industry in the coming years.
FAQ
Q: What were Embraer's total revenues for 2024?
A: Embraer's total revenues for 2024 were $6,395 million, a 21% increase year-over-year.
Q: How many aircraft did Embraer deliver in 2024?
A: Embraer delivered a total of 206 aircraft in 2024, including 73 commercial jets and 130 executive jets.
Q: What is Embraer's guidance for 2025?
A: Embraer projects commercial aviation deliveries between 77 and 85 aircraft, executive aviation deliveries between 145 and 155 aircraft, and total revenues between $7.0 and $7.5 billion for 2025.
Q: What is the current status of Embraer's credit rating?
A: Moody's upgraded Embraer's credit rating to "Baa3" with a stable outlook, classifying the company as Investment Grade.
Read the original press release here.
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