Embraer executive aviation revenues jump 175%
Brazilian aerospace manufacturer Embraer posted first quarter 2024 financial results wherein it reported its highest first quarter revenue in eight years at $239.6m compared to $87.1m in the same period last year.
Topline growth came on the back of record first quarter executive jet deliveries of 18 jets compared to eight in the same period last year.
The company delivered one Phenom 100 and 10 Phenom 300s, while delivering three Praetor 500s and four Praetor 600s in the first quarter of 2024 – most aircraft it has delivered in the first quarter for eight years. In addition to higher deliveries, the company also boasted its executive aviation backlog by $300m to $4.6bn.
Following from better topline, Embraer’s gross margin from the executive aviation segment improved from -0.5% to 21.4% improving the adjusted EBIT margin from -42.9% to 5.0% during the first quarter under review.
Overall, the company’s consolidated revenue in the first quarter of 2024 clocked in at $896.6m an increase of 25% year-over-year. This strong growth came on the back of strong performance in the executive aviation segment.
On the bottom line, the company reported adjusted net loss of $12.8m against $88.9m in the same period last year.
“We currently have concrete sales campaigns for more than 200 aircraft across the world,” said Francisco Gomes Neto, CEO, Embraer in the earnings call. Neto further reaffirmed the 2024 guidance of 72 to 80 commercial and 125 to 135 executive jet deliveries, with total revenue target of $6-8bn.
Beyond the results, Neto further said the company is focused on its existing portfolio with no plans on developing narrowbody as has been speculated for a while now.
“We are now in our harvest season. We don’t have concrete plans to develop or launch a narrowbody or other aircraft in the next few years,” said Neto in the earnings call.
