Embraer Achieves Record Revenue in 2024 and Aims for a Future of Sustainable Growth
The Brazilian manufacturer Embraer concluded 2024 with outstanding financial and operational performance. With revenue of $6.395 billion, the company reached the highest figure in its history, representing a 21% year-on-year increase. Particularly noteworthy was the 40% growth in the Defense and Security division.
Profitability and Financial Strength in 2024
Embraer’s adjusted EBIT amounted to US$708.2 million, with a margin of 11.1%. Excluding the $150 million received from Boeing for the cancellation of the merger, the figure was reduced to $558.2 million, with a margin of 8.7%. Adjusted free cash flow – excluding the EVE division – reached US$675.6 million, as a result of increased aircraft deliveries and strong pre-prospective sales (PDP).
The company also achieved a significant reduction in its net debt, bringing it down to $110.7 million, the lowest figure in its history. With a net debt-to-EBITDA ratio of 0.1, down from 1.4 in 2023, its financial position strengthened considerably. In this context, Moody’s upgraded its credit rating from “Ba1” to “Baa3” with a stable outlook, placing it within the investment grade (IG) alongside the other two major U.S. rating agencies.
→ Embraer E190 Freighter Earns Triple Certification
Deliveries and Order Backlog at Historic Highs
During 2024, Embraer delivered a total of 206 aircraft, surpassing the 181 delivered in 2023 by 14%. The breakdown included:
- 73 commercial aircraft (47 E2 and 26 E1)
- 130 executive jets (75 light and 55 medium)
- 3 C-390 Millennium
These results aligned with the company’s forecasts for both divisions. Additionally, it ended the year with a firm order backlog of $26.3 billion, the largest in its history, marking a 40% year-on-year increase and a 16% rise compared to the previous quarter.
Outlook for 2025: Growth and Consolidation
By 2025, Embraer projects to deliver between 77 and 85 commercial aircraft and between 145 and 155 business aircraft. Total revenues are expected to range between US$7.0 billion and US$7.5 billion, with an adjusted EBIT margin between 7.5% and 8.3%. Adjusted free cash flow is targeted to reach at least US$200 million.
Innovation and Long-Term Plans
Francisco Gomes Neto, CEO of Embraer, announced that the company aims to convert 50% of its EBITDA profits into free cash flow by 2030. This objective will enable key decisions on launching new products without compromising financial stability, avoiding mistakes similar to those made by Bombardier. Although no new models are expected before 2030, the company will continue optimizing its current aircraft, with a particular focus on the E1 family to extend its commercial life, especially in the U.S. market.
Eco-Friendly Aircraft: A Vision for the Future
Regarding sustainability, Embraer continues to advance its Energia family project, which aims to incorporate hydrogen-based propulsion technologies. However, Gomes Neto clarified that these innovations will take between 10 and 15 years to mature due to technological, regulatory, and infrastructural challenges.
With sustained double-digit annual growth and a solid financial strategy, Embraer aims to become a $10 billion company in the next decade. Undoubtedly, the company’s future promises challenges and opportunities in an ever-evolving aerospace market.
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