Embraer Reports Record Revenue in 2024, Sets Ambitious Goals for 2025

On February 27, Embraer (NYSE: ERJ; B3: EMBR3) released its financial results for the fourth quarter and full year of 2024, showcasing record-breaking performance across key metrics.

The Brazilian aerospace manufacturer reported total annual revenue of R$38.37 billion ($6.4 billion), a 21% increase compared to 2023, driven by strong aircraft deliveries and robust demand across its commercial, executive, and defense segments.

In the fourth quarter alone, Embraer posted revenue of R$13.87 billion ($2.31 billion), with an adjusted EBIT of R$1.59 billion ($265 million) and an EBIT margin of 11.5%. For the full year, adjusted EBIT reached R$4.25 billion ($708 million), achieving an 11.1% margin and exceeding guidance.

The company also generated R$4.05 billion ($676 million) in adjusted free cash flow, supported by higher deliveries, pre-delivery payments, and a favorable arbitration outcome with Boeing.

Embraer delivered a total of 206 aircraft in 2024, marking a 14% year-over-year increase. This included 73 commercial jets (47 E2 models and 26 E1 models), 130 executive jets (75 light and 55 medium), and three KC-390 Millennium aircraft for Defense & Security.

Embraer’s Strong 2024 Performance & 2025 Outlook

The fourth quarter alone saw the delivery of 75 jets—31 commercial and 44 executive—aligning with the company’s guidance. The order backlog ended the year at a record $26.3 billion, reflecting a 40% increase year-over-year and providing strong production visibility for the coming years.

Notably, the Defense & Security segment recorded a standout performance with a 40% revenue growth compared to 2023. Despite these achievements, Embraer faced challenges such as currency fluctuations that impacted net income, which stood at R$1.6 billion ($267 million) for the quarter.

For 2025, Embraer projects continued growth with expected deliveries of 77 to 85 commercial jets and 145 to 155 executive jets. The company forecasts total revenue between $7.0 billion and $7.5 billion, an adjusted EBIT margin ranging from 7.5% to 8.3%, and adjusted free cash flow of $200 million or higher.

While analysts at JP Morgan acknowledged Embraer’s strong execution in 2024, they noted that the company’s EBIT guidance for 2025 fell slightly below market expectations, potentially limiting short-term stock gains.

Embraer’s record-breaking year underscores its ability to navigate challenges while capitalizing on growing demand across its markets. With a solid backlog and improved financial health—evidenced by its investment-grade credit rating—the company remains well-positioned for sustained growth in the aerospace sector.

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