Embraer has reported a consolidated revenue of $5,269 million in 2023, an increase of 16% compared to the year prior; with commercial aviation and executive aviation taking a 20% and 13% share respectively. Services and support also accounted for a 12% share in total consolidated revenue.
For the whole year, adjusted EBIT was $350 million and the adjusted EBIT margin was 6.6%, an increase of $79.9 million year on year ‘because of higher volumes across all business units and other operational income’.
The Brazilian manufacturer delivered 25 commercial aircraft in the full year 2023. Commercial aviation revenues totalled $1,847 million, 20% higher year-on-year ‘because of higher deliveries and product mix’. The segment ended the year with a book-to-bill in excess of 1.1:1.
Executive aviation revenues were up 13% year on year at $1,408 million. The gross margin dropped from 23.4% to 19.4% owing to product mix (‘proportionally more medium rather than light jets’) and one-time tax benefits. 49 business jets were delivered in 2023, although Embraer cautions that it ‘continues to face supply chain delays which have negatively impacted 2023 deliveries’. The segment ended the year with a book-to-bill in excess of 1.3:1 and a $4.3bn backlog, $400 million higher year on year. The Phenom 300 was the most delivered light jet for the 12th consecutive year.
For the upcoming full year 2024, Embraer expects to deliver between 72 and 80 commercial aircraft, and make between 125 and 135 executive aviation deliveries. Total company revenues are estimated to be in the $6-$6.4bn range, with an adjusted free cash flow of $220 million or higher for the year.
Embraer adds that in Q3 2023, EVE development costs ‘began to be capitalised as intangible assets as the program reached sufficient maturity’.
Embraer commercial aviation: 20% growth for 2023
