Embraer (EMBR3) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $6.4B (up 21% YoY) in 2024, surpassing guidance and marking the highest in company history, with all business units contributing to growth.

• All-time backlog reached $26.3B, up 40% YoY, reflecting robust demand and strong sales across all divisions.

• Net debt nearly eliminated, with net debt/EBITDA at 0.1x, highlighting improved financial strength and positioning for dividend resumption.

• Largest-ever executive aviation order: $7B contract with Flexjet for 182 firm orders.

• Defense and security posted best sales performance ever, with significant international orders for KC-390 and Super Tucano.

Financial highlights

• 2024 revenue grew over 20% YoY to $6.4B, at the high end of guidance.

• Adjusted EBIT for 2024 was $780M (11.1% margin), exceeding revised guidance; adjusted net income was $462M (7.2% margin), up from $80M in 2023.

• Adjusted free cash flow reached $676M for 2024, well above guidance, aided by defense prepayments.

• Delivered 206 aircraft in 2024, up 14% from 2023.

• Adjusted EBITDA for 2024 was $921.6M (14.4% margin), up from $561.9M (10.7%) in 2023.

Outlook and guidance

• 2025 revenue guidance: $7.0–$7.5B, midpoint 13% above 2024.

• Commercial aviation deliveries expected at 77–85 aircraft (+10% YoY at midpoint); executive aviation at 145–155 jets (+15% YoY).

• EBIT margin guidance for 2025: 7.5–8.3%, implying $575M EBIT at midpoint, 10% above 2024 adjusted EBIT (ex-Boeing).

• Free cash flow guidance for 2025: $200M+; combined 2024–2025 FCF expected to reach $875M, targeting 50% EBITDA conversion.

• Guidance reflects realistic production plans amid ongoing supply chain constraints.