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Embraer has just broken an all-time record of US$22,7 billion in orders, boosting its expectations for 2024! With a significant increase in deliveries and revenues, the company is preparing to face a promising year, maintaining its leadership position in the global aviation sector. What awaits the future? Don't miss the details!
Embraer has achieved an impressive milestone by ending the third quarter of 2024 with an order backlog totaling US$22,7 billion, the highest amount recorded by the company in the last nine years.
This growth places the Brazilian aerospace giant at an even more competitive level in the global market, with optimistic prospects for the future, despite the challenges faced in the sector.
But what is behind this record number? What has changed in Embraer's projections for next year and how is the company dealing with the growing demand for its aircraft?
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Order book: robust growth
By the end of September 2024, Embraer had accumulated US$22,7 billion in orders, an increase of 25% compared to the same period last year.
This growth reflects not only the recovery of the aviation sector after the pandemic, but also Embraer's strong position in the manufacturing of commercial and executive jets.
To understand the magnitude of this result, it is worth highlighting that this value is the highest recorded by the company in the last nine years, consolidating Embraer as one of the main global players in the market for aircraft with up to 150 seats.
The order book includes not only commercial aircraft, but also a significant demand for executive jets and aircraft for the Defense & Security sector, a segment in which Embraer has stood out with innovations such as the C-390 Millennium multi-mission freighter.
The more than 10% increase in orders quarter over quarter shows that Embraer continues to attract new customers and expand its presence in international markets.
Expectations for 2024: promising results
Regarding financial forecasts, Embraer updated its expectations for the year 2024. The company revised previous estimates, adjusting them to more accurately reflect the challenges and opportunities of the current scenario.
Aircraft delivery volumes were adjusted to 70 to 73 units in the Commercial Aviation division, slightly below the previous forecast of between 72 and 80 aircraft.
However, Executive Aviation maintained its delivery forecast of between 125 and 135 jets, remaining firm on its growth trajectory.
In financial terms, Embraer projects revenues between US$6,0 billion and US$6,4 billion, with adjusted EBIT expected to reach between 9% and 10%, a significant increase compared to the 6,5% and 7,5% previously recorded.
The adjusted free cash flow forecast was also raised to $300 million or more, a considerable figure that demonstrates the company's financial strength.
These numbers reinforce optimism regarding the recovery of the aviation market and Embraer’s ability to adapt to new demands.
Solid credit rating and financial results
In September 2024, Embraer received important recognition in the financial market: Fitch Ratings raised its credit risk rating from “BB+” to “BBB-” with a stable outlook.
Now, both Fitch and S&P Global classify Embraer as “Investment Grade” (IG), which means that the company presents a lower degree of risk for investors.
However, Moody's maintained the company's Ba1 rating, one notch below IG, but with an outlook recently revised to positive.
This recognition reflects Embraer's financial stability and investors' confidence in its ability to grow sustainably.
The third quarter of 2024 was also a highlight in operational terms. Embraer delivered 59 jets, an increase of 26% compared to the previous quarter and 37% when compared to the same period in 2023.
Among these deliveries, 41 jets were executive (22 light and 19 medium), 16 commercial and two C-390 multi-mission freighters, destined for the Defense & Security sector.
This impressive performance reflects the Embraer's capacity to meet growing demand driven by the recovery of global aviation.
Financial results: increase in revenues
In terms of revenue, Embraer achieved a significant leap in the third quarter of 2024, reaching R$9,4 billion, a growth of almost 50% compared to the same period of the previous year.
The Executive Aviation and Defense & Security divisions stood out, with growth of over 85% compared to 2023.
These numbers highlight the company's strength in different business fronts and its ability to innovate in new segments, such as the military and cargo aircraft market.
Adjusted EBIT also showed a robust increase, reaching R$1,6 billion, which represents a margin of 17,6% in the third quarter of 2024.
Compared to the previous year, growth was significant, since, without Boeing's arbitration, the EBIT margin in the third quarter of 2023 was 8,7%.
This performance reflects not only the increase in deliveries, but also efficient cost management and Embraer’s ability to maximize profits, even in a challenging market.
Embraer on the global stage: a success story
Embraer is one of Brazil's leading exporters and a world leader in the manufacture of commercial jets with up to 150 seats.
Since its founding in 1969, the company has delivered more than 9.000 aircraft and transports more than 150 million passengers per year with its aircraft.
With industrial units and offices around the world, including in Asia, Europe and America, Embraer continues to expand its international presence, remaining an icon of global aeronautical engineering.
What to expect for the future of Embraer?
With a robust order book, optimistic financial projections and a solid position in the global market, Embraer appears to be preparing for an even more promising future.
However, the question remains: will the company be able to maintain this growth rate and overcome the challenges that the aviation market may still offer in the coming years?
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