Brazilian aircraft manufacturer Embraer reported strong third quarter 2024 results, posting an adjusted net profit of $221 million - climbing substantially from $32.9 million in the same period last year.
Revenues climbed from $1.3bn last year to $1.7bn. Adjusted EBITDA for the period was $356.6 million, up from $149.3 million, with an adjusted EBITDA margin of 21.1% - up from 11.6% last year.
For commercial aviation, revenues totalled $473.3 million, which was 11% higher than the same period a year prior. Gross margin decreased from 6.5% last year to 4.3% in the third quarter due to supply chain delays, as well as product and customer mix.
As of the quarter's end, it had a net debt of $1.1bn, without considering its electric vertical take-off and landing (eVTOL) subsidiary Eve Air Mobility.
The company generated a free cash flow of $241.1 million during the quarter, without Eve consideration, driven by high aircraft deliveries.
Embraer delivered 59 aircraft in the period, up 37% from last year. The deliveries consisted of 16 commercial aircraft (four E1-175, 10 E2-195, and two E2-190), as well as 41 executive jets and two C-390 Millennium aircraft for defence. By the quarter end, its backlog reached $22.7bn, up a quarter compared to last year's third quarter and 10% over the previous quarter.
For its full year guidance, management scaled down its commercial aviation delivery estimate from 72-80 to between 70 and 73 aircraft deliveries. The company's full year adjusted EBIT margin is forecast to be 9-10%, up from previous estimate of 6.5-7.5%. Embraer also estimates a free cash flow of $300 million or higher, up from previous forecast of $200 or higher.