Embraer sees strong Q2 2024 performance with significant growth in deliveries and revenue

Key Highlights

• Deliveries: Embraer delivered 47 jets in Q2 2024, marking an 88% increase from Q1. This included 27 executive jets, 19 commercial jets, and 1 C-390 Millennium for defence.
• Order Backlog: The firm order backlog reached a 7-year high of $21.1 billion, reflecting a 20% year-over-year increase.
• Revenue Growth: Revenues surged by 67% quarter-over-quarter, totalling $1.494 billion, driven by a 176% increase in Commercial Aviation revenue.
• Profitability: Adjusted EBIT improved significantly to $138.8 million with a 9.3% margin, compared to $6.8 million and a 0.8% margin in Q1.
• Cash Flow: Adjusted free cash flow, excluding Eve, was negative $215 million due to working capital needs for anticipated higher deliveries in the second half of 2024.
• 2024 Outlook: Embraer reiterated its 2024 guidance, expecting total revenues between $6.0-$6.4 billion, with an Adjusted EBIT margin of 6.5%-7.5%, and positive free cash flow of $220 million or more. Delivery targets include 72-80 commercial aircraft and 125-135 executive jets.