SÃO PAULO - Embraer S.A. (NYSE: ERJ; B3: EMBR3), a leading aerospace company, announced its financial results for the first quarter of 2024, highlighting a significant increase in aircraft deliveries and a robust order backlog. EMBR shares were trading down 2.6% Tuesday morning.
The company reported a 25% increase in revenue year-over-year (YoY), totaling $897 million, slightly below the analyst consensus estimate of $902.84 million.
In the first quarter, Embraer delivered 25 jets, marking a 67% increase compared to the same period last year. This includes 18 executive jets and 7 commercial jets. The firm order backlog reached $21.1 billion, the highest in seven years, with Commercial Aviation witnessing a quarter-over-quarter increase of $2.3 billion, a 26% rise. Executive Aviation particularly stood out, achieving its highest first-quarter revenues and number of deliveries in eight years.
Adjusted earnings before interest and taxes (EBIT) for the quarter were $6.8 million, corresponding to an adjusted EBIT margin of 0.8%, an improvement from the -4.4% margin in the first quarter of 2023. However, adjusted free cash flow, excluding the Eve segment, was negative at -$346 million due to preparations for an increased number of deliveries in upcoming quarters. Additionally, Embraer successfully reduced its gross debt by $276 million during the quarter.
Embraer's management reiterated its 2024 guidance, maintaining an optimistic outlook with evenly balanced risks and opportunities. The company forecasts commercial aviation deliveries between 72 and 80 aircraft and executive aviation deliveries between 125 and 135. Total company revenue is projected to be in the range of $6.0 to $6.4 billion, with an adjusted EBIT margin between 6.5% and 7.5%, and adjusted free cash flow of $220 million or higher.
"The results this quarter reflect our strong market position and the continuous demand for our aircraft," said an Embraer executive. "Our significant backlog and delivery growth are testaments to our commitment to innovation and customer satisfaction."
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