Embraer sees record revenue, deliveries in Q3

Brazilian aerospace manufacturer Embraer reported financial results for the third quarter of 2024 reporting a substantial growth of 65% year-over-year to $561.5m owing to higher aircraft deliveries and better pricing.

Embraer delivered 41 executive jets in the third quarter, of which 22 were and 19 were medium aircraft.

“This is the best third quarter and first nine months in terms of revenues and deliveries ever registered by the business unit,” said the company in the earnings statement.

In addition to the improvement in top line, the company’s gross margin improved to 23.4% in Q3 from 21.8% last year. The company posted a similar growth in its adjusted EBIT margin which improved to 16.3% from 10.7% last year as higher volumes led the expansion in margins.

In the light jet segment, Embraer delivered 18 Phenom 300s, flat compared to second quarter and one more than same period last year. However, it delivered four Phenom 100, up 100% on both sequential as well as yearly basis.

In the mid-size segment, the company delivered nine Praetor 500s and 10 Praetor 600s up from three and four from the second quarter respectively.

So far, in the nine month period, Embraer has delivered 86 executive jets against the annual target of 125-135 deliveries. Jet deliveries are typically seasonal and usually pick up pace in third quarter with major chunk leaving the manufacturers’ hangars in the fourth quarter of fiscal year.

Overall, the company’s revenue from all segments totalled $1.7bn in the third quarter, a growth of 32%YoY with major contribution from executive aviation and defense & security segments. Meanwhile, the company’s total backlog for executive, commercial and services segments hit a nine-year high of $22.7bn, up 25% year-over-year.

Looking ahead, the company maintained its full-year outlook for executive aviation eyeing deliveries in the range of 125-35.