Embraer expects to deliver up to 240 commercial and executive jets in 2025, up from 206 aircraft delivered during 2024, the company said on February 27, 2025.
The Brazilian manufacturer's CEO Francisco Gomes Neto said the company could exceed its guidance, but is remaining conservative due to ongoing supply chain constraints.
Neto said during the company's earnings call that it is “well prepared” to face the challenges in the year ahead.
The manufacturer expects commercial aviation deliveries of between 77 and 85 aircraft in 2025, up 10% on 2024. Executive aviation deliveries are expected to fall between 145 and 155 aircraft, a 15% jump.
During the fourth quarter of 2024, the company's revenue totalled $2.3bn, up 17% on the year prior. Revenue for the company’s full year totalled $6.4bn, this annual revenue is the highest Embraer has ever recorded, up 21% on the year previous, at the high end of company guidance.
Adjusted EBIT reached $265.1 million with an 11.5% margin during the year’s fourth quarter. In 2024, the company reported adjusted EBIT of $708.2 million and an 11.1% margin.
Adjusted free cash flow, excluding the company's eVTOL subsidiary Eve, was $995.5 million for the fourth quarter and $675.6 million for 2024. Embraer said this was due to an increased number of aircraft deliveries, strong sales performance, and the outcome of the Boeing arbitration during the third quarter of the year. As a result, the company ended 2024 with a net debt position of $110.7 million, excluding its eVTOL arm Eve.
Embraer’s Boeing arbitration refers to the legal dispute between the two companies after Boeing terminated its planned $4.2bn joint venture with Embraer in April 2020.
The company set a new record during 2024 with a firm order backlog of $26.3bn in the fourth quarter, marking a 40% increase on the same period of the year prior. The company's commercial aviation division finished the year with a $10.2bn backlog, up 15% from the previous year, and a 1.6x book-to-bill ratio. The executive jets segment achieved an all-time high backlog of $7.4bn, a 65% increase on 2023, driven by a significant deal with Flexjet for 182 firm orders and 30 options.
Embraer delivered 75 jets in the fourth quarter of 2024, of which 31 were commercial jets made up of 20 E2s and 11 E1s, additionally 44 executive jets were delivered. In 2024, the company delivered a total of 206 aircraft, of which 73 were commercial jets made up of 47 E2s and 26 E1s, 130 were executive jets and three multi-mission KC-390 Millennium in the defence & security arm of the business.
These deliveries represent an increase of 14% in comparison to the 181 aircraft delivered by Embraer in 2023. Deliveries were in line with guidance for both commercial and executive aviation. The company announced new contacts with Luxair, Virgin Australia, Mexicana and LOT Polish Airlines during the year.
This follows an announcement from Embraer earlier this week that it would implement a four-year pause in the development program of its E175-E2 jet, according to a securities filing. This is due to discussions in the US regarding maximum take-off weight limitations for aircraft with up to 76 seats, along with global market conditions and sustained demand for the current E175 jet in North America.
For 2025, total company revenue is expected to fall between $7- $7.5bn, with the mid-point range 13% higher than what was generated in 2024. Adjusted EBIT margin between 7.5 and 8.3%. Adjusted free cash flow of $200 million or higher for the year. Free cash flow of $200 million for the year. Update this guidance on a quarterly basis.
Gomes Neto anticipates 2025 to surpass 2024, expressing strong optimism for a successful year, especially in commercial aviation sales. He also said that the company’s product mix will not change much in 2025, stating that there will be a more E1s delivered in 2025.
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