Brazilian aerospace giant Embraer has unveiled its second quarter 2024 financial results, revealing impressive growth across key metrics.
The company’s performance serves to further highlight its resilience and strong market position in the global aviation industry.
Delivery Surge Drives Revenue Growth
Embraer’s aircraft deliveries surged in Q2 2024, with a total of 47 jets handed over to customers. This marks a substantial 88% increase compared to the previous quarter.
The breakdown of deliveries showcases Embraer’s diverse product portfolio:
- 27 executive jets (20 light and 7 medium)
- 19 commercial jets
- 1 multi-mission C-390 Millennium for defense applications
This surge in deliveries directly contributed to Embraer’s robust financial performance. Overall, the manufacturer reported total revenues of $1,494 million for the quarter. This represents a substantial 67% increase compared to Q1 2024.
The Commercial Aviation segment was particularly strong, with revenues growing by 176%.
Record-Breaking Backlog Signals Future Success
Embraer’s firm order backlog reached $21.1 billion in Q2 2024, hitting a seven-year high. This 20% year-over-year increase demonstrates strong market demand for Embraer’s aircraft and provides a solid foundation for future growth.
The company’s adjusted EBIT (Earnings Before Interest and Taxes) reached $138.8 million in Q2 2024, with a healthy 9.3% margin.
This marks a significant improvement from the $6.8 million and 0.8% margin reported in Q1 2024.
While Embraer reported negative adjusted free cash flow of $215 million (excluding Eve), this was attributed to working capital needs supporting higher delivery expectations in the second half of 2024.
2024 Outlook
The company maintains its full-year 2024 guidance, projecting strong performance across key metrics. Embraer anticipates delivering between 72 and 80 commercial aircraft, alongside 125 to 135 executive jets.
Total company revenues are expected to fall within the $6.0 to $6.4 billion range. The adjusted EBIT margin is forecasted to be between 6.5% and 7.5%, while adjusted free cash flow is projected to reach $220 million or higher.
These projections reflect Embraer’s confidence in its continued growth and operational efficiency throughout the year.
Founded in 1969, Embraer has established itself as a major player in the global aerospace industry. The company’s diverse portfolio spans commercial, executive, defense, and agricultural aviation sectors.
Summary
With over 8,000 aircraft delivered to date, Embraer’s impact on global air travel is undeniable – on average, an Embraer-manufactured aircraft takes off every 10 seconds somewhere in the world, transporting over 145 million passengers annually.
Embraer holds a leading position in the commercial jet market for aircraft up to 150 seats and stands as Brazil’s primary exporter of high value-added goods.
The company’s continued success and strong Q2 2024 results demonstrate its ability to navigate challenges and capitalize on opportunities in the dynamic aerospace industry.
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