As we step into 2025, Embraer, one of the world’s leading aircraft manufacturers, continues to soar to new heights. With strong financial performance and ambitious delivery targets, the company is setting the stage for another successful year. If you’re not a finance expert, don’t worry—we’ve broken it down into simple terms so you can understand what’s happening with Embraer and why it matters.
What to Expect in 2025
Embraer has shared its expectations for aircraft deliveries this year:
- Commercial Aviation: Between 77 and 85 aircraft
- Executive Aviation: Between 145 and 155 aircraft
In terms of financial performance, Embraer expects:
- Total revenue: Between $7.0 and $7.5 billion
- Operating profit margin: Between 7.5% and 8.3%
- Free cash flow: At least $200 million (This is the money left after covering operating costs and investments.)
How Embraer Performed in 2024
Last year was one of the best in Embraer’s history, with record-breaking financial results:
- Total revenue: $6.4 billion (A 21% increase compared to 2023)
- Defense & Security revenue: 40% growth
- Operating profit: $708.2 million, with a strong 11.1% margin
- Free cash flow: $675.6 million (Generated by strong aircraft sales and payments from Boeing arbitration)
- Total aircraft delivered: 206 jets (A 14% increase compared to 2023)
Key Achievements in 2024
- Strong Aircraft Deliveries:
- Commercial Jets: 73 delivered (47 new-generation E2 models and 26 of the previous E1 version)
- Executive Jets: 130 delivered (75 light jets and 55 medium jets)
- Defense & Security: 3 multi-mission C-390 Millennium aircraft
- Largest Order Backlog in History:
- Embraer closed 2024 with an order backlog worth $26.3 billion, the highest ever recorded.
- This represents a 40% increase compared to the previous year.
- Improved Financial Strength:
- Embraer reduced its debt significantly, ending 2024 with a net debt-to-EBITDA ratio of 0.1x, down from 1.4x in 2023.
- Credit rating agencies upgraded Embraer’s rating to Investment Grade, recognizing its financial stability.
What This Means for the Aviation Industry
Embraer’s strong performance and positive outlook for 2025 signal continued growth and stability in the aviation sector. With rising demand for both commercial and executive jets, the company is well-positioned to maintain its leadership in the market.
For aviation enthusiasts and industry professionals alike, these results show that Embraer is not only delivering more aircraft but also strengthening its financial position, ensuring it remains a key player in the industry for years to come.