Embraer’s reports strong Q3 2024 results, updates earnings guidance

In the third quarter of 2024, Embraer delivered a total of 59 jets, marking a 26% increase quarter-over-quarter and a 37% rise year-over-year. Deliveries included 41 executive jets (22 light and 19 medium), 16 commercial jets, and two C-390 Millennium multi-mission aircraft for Defence & Security.

Key highlights of Embraer’s Q3 2024 results include:

A record firm order backlog of US$22.7 billion, reaching its highest level in nine years. This represents a 25% year-over-year increase and nearly a 10% rise quarter-over-quarter.

Revenues of US$1.692 billion, reflecting a 32% year-over-year growth, with particularly strong performance in Executive Aviation and Defence & Security, both up by 65%.

Adjusted EBIT of US$297.5 million, achieving a margin of 17.6%. Excluding Boeing arbitration, adjusted EBIT stood at US$147.5 million (8.7% margin), compared to US$100.1 million (7.8% margin) in Q3 2023.

Adjusted free cash flow, excluding Eve operations, reached US$241.1 million, attributed to the higher volume of aircraft deliveries.

Embraer has updated its 2024 guidance, noting that the previous forecast no longer reflects a balanced outlook. For Commercial Aviation, delivery estimates have been revised to 70-73 aircraft (down from 72-80), while Executive Aviation targets remain between 125 and 135 jets. Revenue projections remain in the range of US$6.0-6.4 billion. However, adjusted EBIT margin guidance has been increased to between 9.0% and 10.0% (from 6.5% to 7.5%), and adjusted free cash flow is now expected to exceed US$300 million, up from the prior minimum of US$220 million.