Embraer (EMBR3) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $6.4 billion in 2024, the highest in company history, with all business units contributing to growth.

• Backlog reached an all-time high of $26.3 billion, up 40% year-over-year, reflecting strong demand and a 2.2 book-to-bill ratio.

• Net debt nearly eliminated, with net debt-to-EBITDA at 0.1x, and Moody’s upgraded to investment grade.

• All 2024 operational and financial guidance targets met or exceeded, with 206 aircraft delivered (+14% yoy).

• Largest-ever executive aviation order: $7 billion Flexjet contract for 182 aircraft.

Financial highlights

• Net revenues rose 21% year-over-year to $6,395 million in 2024, with 4Q24 revenue at $2,311 million (+17% yoy).

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

• Adjusted EBIT reached $708 million (11.1% margin), up from $350 million (6.6%) in 2023; adjusted net results were $462 million (7.2% margin).

• Adjusted free cash flow (ex-Eve) was $676 million for 2024, well above guidance, aided by defense prepayments.

• Consolidated cash position at year-end was $2,551 million.

Outlook and guidance

• 2025 revenue guidance: $7.0–$7.5 billion (+13% yoy midpoint).

• 2025 adjusted EBIT margin guidance: 7.5%–8.3%, with free cash flow expected at $200 million or higher.

• Commercial aviation deliveries projected at 77–85 (+10% yoy midpoint); executive aviation at 145–155 (+15% yoy midpoint).

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

• Combined 2024–2025 free cash flow expected to reach $875 million, targeting 50% EBITDA conversion.