Embraer released its financial results for the fourth quarter of 2023 and provided guidance for 2024. Key highlights include:
- Delivery Performance: Embraer delivered a total of 75 jets in 4Q23 and 181 jets in 2023, marking a 13% year-on-year increase. The delivery breakdown included commercial aircraft, executive jets (light and medium), and military C-390 aircraft.
- Backlog and Revenue: The firm order backlog reached US$18.7 billion, the highest in the past 6 years, with strong performance across Executive and Commercial Aviation. Revenues for the year totalled US$5,269 million, with all business units experiencing double-digit growth.
- Financial Metrics: Adjusted EBIT reached US$181.7 million in 4Q23 and US$350.0 million for the year, meeting guidance. Adjusted EBITDA margins were 12.8% for the quarter and 10.7% for the year.
- Cash Flow and Debt Management: Adjusted free cash flow for the year exceeded guidance at US$318.3 million, driven by strong sales. Net debt decreased to US$781 million in 4Q23, reflecting significant positive free cash flow.
- Credit Ratings: S&P Global Ratings raised Embraer to investment grade, while Moody’s upgraded to Ba1. Fitch revised the company’s outlook to positive.
- Guidance for 2024: Embraer anticipates deliveries of 72 to 80 commercial aircraft and 125 to 135 executive jets. Total company revenues are expected in the range of US$6.0 to US$6.4 billion, with adjusted EBIT margins between 6.5% and 7.5%.
Additionally, significant achievements were highlighted across the Executive, Defense & Security, Commercial Aviation, and Services & Support segments, including new contracts, certifications, and strategic expansions.
The press release released today underscores Embraer’s resilience in navigating supply chain challenges and its continued focus on growth and innovation across its business units.