By Peter Frontini
SAO PAULO (Reuters) -Brazilian planemaker Embraer's estimate for 2024 aircraft deliveries could be higher if it were not for supply chain issues, CEO Francisco Gomes Neto said on Monday.
The world's third-largest planemaker behind Boeing (NYSE:BA) and Airbus estimated it would deliver between 125 and 135 executive jets this year, compared with 115 in 2023.
Deliveries from its commercial aviation segment are expected to be between 72 and 80 planes, up from 64 aircraft it delivered last year.
"Both deliveries in the executive and commercial could be higher if we had more parts from the market," the CEO said in a call with analysts.
The executive said that despite improvements in supply chain constraints in 2023 that should continue into this year, Embraer's deliveries forecast was made based on conservative commitments from its suppliers.
"But even then, we are already seeing some delays at the beginning of the year that are bringing some challenges in our production flow," Gomes Neto added.
It also forecast a growth of up to 21.5% in annual consolidated revenue to a range of $6.0 billion to $6.4 billion.
Free cash flow for the year should be at least $220 million, an estimate that CFO Antonio Garcia said could be seen as "conservative".
When the company has more visibility regarding free cash flow, the guidance will be updated, he said.
In 2023, its yearly revenue was $5.27 billion, within its estimated range of $5.2 billion to $5.7 billion.
Despite the growth outlook, the planemaker said it "continues to face challenges in the supply chain, which negatively impacted the 2023 results."
For the fourth quarter of 2023, Embraer reported 55% growth in adjusted net profit, to 350.6 million reais ($70.20 million).
The company's net debt, excluding its electric aircraft subsidiary Eve, shrank to 3.9 billion reais, explained by "the significant positive free cash flow generated in the quarter," it said.
($1 = 4.9943 reais)