#Brazil #São Paulo #Embraer #E-Jets #Executive Jets

Embraer's Record Achievements in 4Q24

Embraer, a prominent player in the aerospace industry, has announced a remarkable milestone as it ended the fourth quarter of 2024 with a staggering backlog of US$26.3 billion. This figure represents a significant 40% increase compared to the same period the previous year and marks a 16% rise from the prior quarter.

Strong Performance Across Segments

The company's backlog is a direct reflection of its product demand and operational success across various aviation sectors. Commercial Aviation, which reported a backlog of US$10.2 billion, showcased a 15% year-on-year growth. This segment also achieved a solid 1.6 book-to-bill ratio, indicating that the company is successfully securing new orders while fulfilling deliveries.

Moreover, Executive Jets announced an all-time high backlog of US$7.4 billion, which is over 65% higher than the previous quarter, bolstered by a landmark deal with Flexjet. This agreement includes firm orders for various aircraft models and underscores the efficacy of Embraer's strategic partnerships.

Additionally, the Services & Support sector reached US$4.6 billion—an increase of over 50% from the previous year. This growth was attributed to long-term contracts with clients including Flexjet and several airlines, demonstrating the robust demand for aftermarket services within the aviation industry. The Defense & Security unit also saw a considerable backlog increase, rising 67% year-on-year to reach US$4.2 billion, further highlighting Embraer's diversification within defense contracting.

Delivery Highlights

During the last quarter of 2024, Embraer successfully delivered 75 aircraft, a 27% increase over the previous quarter. For the full year, the company managed to deliver a total of 206 aircraft, a pleasing 14% increment compared to 2023. This performance reaffirms Embraer’s position as a competitive manufacturer in the global aerospace market.

Q4 2024 Delivery Breakdown

• - Executive Aviation: 44 jets
• - Commercial Aviation: 31 jets
• - Defense & Security: Limited deliveries with key military transport gains.

The increase in deliveries within Executive Aviation is particularly noteworthy, emphasizing the division's growth momentum as it catered to higher operational needs than ever before.

Market Position and Future Prospects

Embraer's commitment to enhancing its production and operational efficiency is evident in its strategic initiatives planned for 2025. This includes improving the distribution of aircraft deliveries throughout the year, aiming to reduce supply chain constraints that have historically affected the production schedule. The company is actively working to modernize its production methodologies to keep pace with growing aviation demands.

The future appears bright for Embraer, as it maintains an industry-leading 2.2 book-to-bill ratio, reflecting a solid pipeline of business. With an ever-expanding backlog and consistent demand across its product lines, the company is well-positioned to continue its legacy as a leader in the aerospace sector.

Conclusion

In summary, Embraer's record backlog of US$26.3 billion not only signifies its current operational strength but also sets a compelling stage for growth in 2025 and beyond. With ongoing initiatives to enhance production and delivery efficiency, Embraer is poised to capitalize on the robust demand in both commercial and defense aviation sectors, proving its resilience and adaptability in the competitive aerospace landscape.