The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Embraer (ERJ) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Embraer is a member of the Aerospace sector. This group includes 53 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sec ...

Core Viewpoint - EmbraerEmpresa Brasileira de Aeronautica (ERJ) is currently considered a strong buy due to its favorable valuation metrics and earnings outlook, indicating it may be undervalued in the market [4][9]. Valuation Metrics - ERJ has a Forward P/E ratio of 15.83, significantly lower than the industry average of 21.71, with historical values ranging from 13.64 to 24.12 over the past year [4]. - The PEG ratio for ERJ stands at 0.98, compared to the industry average of 1.74, suggesting a favorable growth outlook relative to its price [5]. - ERJ's P/B ratio is 2.22, which is lower than the industry average of 4.49, indicating a solid valuation based on book value [6]. - The P/S ratio for ERJ is 1.24, compared to the industry average of 1.71, reflecting a better valuation based on revenue [7]. - ERJ's P/CF ratio is 12.45, significantly lower than the industry average of 27.62, suggesting it is undervalued based on cash flow [8]. Investment Outlook - The combination of these metrics indicates that ERJ is likely being undervalued, making it an attractive investment opportunity for value investors [9].

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Investment Rating - The report suggests a positive outlook for the aerospace and defense sectors, highlighting potential investment opportunities in companies like Howmet Aerospace, Loar Holdings, and Raytheon Technologies [6][7]. Core Insights - The AI data center sector is experiencing significant investment, with major companies like Microsoft and Meta planning to invest over $345 billion in AI infrastructure by 2025, indicating a potential bubble in the market [2][23]. - The aerospace industry is showing signs of recovery, with Airbus delivering approximately 70 aircraft in March, reflecting an 11% year-on-year increase [29]. - The defense sector is witnessing substantial contracts, such as Lockheed Martin receiving a $4.94 billion contract for precision strike missiles, indicating strong government spending in defense [35]. Summary by Sections Global Market Review - The U.S. stock market has shown a cautious sentiment, with the S&P 500 index declining over 1% recently, reflecting a risk-off attitude among investors [13]. Infrastructure - The AI data center sector is facing risks of overheating, with significant investments planned by major tech companies [23]. - The PJM Interconnection has released a reliability resource plan to ensure new power plants can connect to the grid efficiently [26]. - Poland is advised to delay the closure of coal plants to avoid a power shortage by 2030 [27]. Industrial Equipment - The price index for electric motors and generators in the U.S. has shown a year-on-year increase of 26% [20]. - China's transformer exports in early 2025 saw a significant increase of 48% year-on-year, indicating strong demand [57]. Energy - U.S. electricity prices have decreased by 35.5% recently, while the market for natural gas is showing mixed signals [5]. - The average spot price for uranium in the global market has decreased by 7.9% month-on-month [4]. Aerospace - The price index for aircraft engines and components has remained stable, with a year-on-year increase of 6.2% [31]. - The aerospace sector is actively pursuing sustainable development, facing challenges in achieving net-zero emissions [29]. Defense - The U.S. government defense spending price index has shown a year-on-year increase of 2.1% [36]. - The defense industry is experiencing a surge in contract awards, particularly in precision strike and unmanned systems [35].

Financial Performance - Total revenue for the nine-month period ended September 30, 2024, increased to $4,083.2 million, up 24% from $3,293.4 million in the same period of 2023[7]. - Gross profit for the nine-month period was $723.5 million, representing a 27% increase compared to $570.1 million in the prior year[7]. - Operating income before financial results for the nine-month period rose to $409.2 million, significantly up from $105.5 million in the same period of 2023[7]. - Net income for the nine-month period was $316.6 million, compared to a loss of $34.5 million in the same period of 2023[7]. - The company reported a basic earnings per share of $0.42 for the nine-month period, compared to a loss per share of $0.04 in the same period of 2023[7]. - For the nine months ended September 30, 2024, Embraer reported an income of $316.6 million, a significant recovery from a loss of $34.5 million in the same period of 2023, representing a turnaround of approximately 1017%[13]. - Total comprehensive loss for the period was $298.3 million, compared to a loss of $28.1 million in the previous year, indicating a deterioration in overall financial performance[13]. - The company reported a net foreign exchange loss of $19.6 million for the period, compared to a loss of $1.9 million in the previous year[187]. Cash and Liquidity - Cash and cash equivalents decreased to $831.5 million as of September 30, 2024, down from $1,629.2 million at the end of 2023[3]. - Cash and cash equivalents at the end of the period were $825.0 million, down from $1,023.9 million at the end of September 2023, reflecting a decrease of approximately 19.4%[13]. - The company reported a significant increase in fixed deposits, which decreased from $1,168.8 million to $421.6 million, indicating a shift in liquidity management[32]. - The company has cash equivalents and financial investments totaling $1,771.4 million, with 93.37% indexed to fixed rates[166]. - As of September 30, 2024, cash and cash equivalents held by Banco do Brasil S.A. amounted to $268.1 million, while BNDES financing reached $670.2 million[72]. Assets and Liabilities - Total assets increased to $11,671.3 million as of September 30, 2024, compared to $10,782.5 million at the end of 2023[5]. - Total liabilities rose to $8,255.7 million as of September 30, 2024, up from $7,743.2 million at the end of 2023[5]. - The company’s total shareholders' equity increased to $3,415.6 million as of September 30, 2024, up from $3,039.3 million at the end of 2023[5]. - The company reported a total loans and financing balance of $2,646.0 million as of September 30, 2024, down from $2,886.4 million at December 31, 2023, indicating a decrease of 8.3%[86]. - Total liabilities increased from $4,223.9 million on December 31, 2023, to $4,453.1 million on September 30, 2024, an increase of 5.4%[136]. Inventory and Receivables - Inventories increased to $3,340.4 million as of September 30, 2024, compared to $2,636.0 million at the end of 2023[3]. - The inventory value as of September 30, 2024, was $3,473.0 million, an increase from $2,763.3 million on December 31, 2023, representing a growth of 25.7%[52]. - The company's trade accounts receivable increased to $266.6 million as of September 30, 2024, compared to $230.8 million at the end of 2023, with overdue amounts rising due to a specific customer default[38]. - The allowance for expected credit losses rose to $11.2 million as of September 30, 2024, from $9.8 million at the end of 2023, reflecting adjustments in credit risk management[39]. Investments and Capital Expenditures - The company invested $169.3 million in property, plant, and equipment during the nine months ended September 30, 2024, compared to $148.8 million in the same period of 2023, marking an increase of about 13.4%[13]. - The company’s financial investments totaled $939.9 million as of September 30, 2024, up from $691.7 million at the end of 2023, with significant increases in structured notes and investment funds[34]. - The company’s investments increased to $46.1 million as of September 30, 2024, from $28.2 million on December 31, 2023, marking a growth of 63.8%[59]. Tax and Provisions - The effective tax rate for the period was -18.5%, compared to -26.3% in the same period of the previous year[101]. - The company recognized a provision of $3.2 million related to a tax assessment notice, down from $4.7 million in 2023[104]. - Total provisions increased from $288.2 million on December 31, 2023, to $313.8 million on September 30, 2024, reflecting a net addition of $25.6 million[111]. Management and Governance - The total remuneration for key management personnel increased to $15.3 million for the nine months ending September 30, 2024, compared to $7.9 million in the same period of 2023, reflecting a 93.7% increase[74]. - The company has significant restrictions on accessing cash balances of EVE Holding, which may impact liquidity for settling obligations[65]. Legal and Contingent Liabilities - The arbitration proceedings with Boeing concluded with a payment of $150 million to Embraer on October 3, 2024[121]. - The company is currently involved in a legal dispute with Conviasa, with the amount in dispute yet to be determined[116]. - The company has contingent liabilities related to labor lawsuits totaling $17.9 million as of September 30, 2024[114]. Market and Backlog - The company has a backlog of performance obligations valued at $22.7 billion as of September 30, 2024, up from $18.7 billion in 2023, with $20.8 billion expected to be satisfied within the next five years[180]. - Revenue from the Commercial Aviation segment was $1,227.5 million, up from $1,095.6 million in 2023, indicating strong demand in this area[193]. - The Defense & Security segment generated $487.6 million in revenue, a significant increase from $313.1 million in the prior year[193].

Group 1 - Sweden has officially committed to acquiring four C-390 Millennium multi-mission aircraft from Embraer, securing production slots during LAAD Defence & Security 2025 [1] - The acquisition is part of Sweden's strategy to enhance its defense capabilities with next-generation NATO interoperable aircraft [2][3] - The C-390 Millennium is recognized for its versatility, reliability, operational efficiency, and cost-effectiveness, with eight countries already acquiring the aircraft [4] Group 2 - The C-390 has demonstrated a high mission capability rate of 93% and mission completion rates above 99% since its operational debut with the Brazilian Air Force in 2019 [5] - The aircraft can carry a payload of 26 tons and operates at a speed of 470 knots, capable of various missions including cargo transport, medical evacuation, and search and rescue [6] - The C-390 is also equipped for air-to-air refueling, showcasing its dual capability as both a tanker and receiver [7] Group 3 - Embraer has delivered over 9,000 aircraft since its founding in 1969 and is a leading manufacturer of commercial jets up to 150 seats [8]

Core Points - Embraer S.A. has filed its Form 20-F for the fiscal year ended December 31, 2024 with the U.S. Securities and Exchange Commission (SEC) [1] - The report is accessible on various official websites including SEC, Brazilian Securities and Exchange Commission (CVM), and Embraer's Investor Relations [1] - Shareholders and holders of Embraer's American Depositary Shares can request a hardcopy of the Annual Report 20-F free of charge from the Investor Relations Department [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Embraer (ERJ) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.Embraer is a member of the Aerospace sector. This group includes 51 individual stocks and currently ...

Embraer S.A. (ERJ) , with rising earnings estimates, robust return on equity (ROE), increasing investments and a solid backlog, offers a great investment opportunity in the Zacks Aerospace Defense industry.Let’s focus on the reasons that make this Zacks Rank #1 (Strong Buy) stock an attractive investment pick at the moment.Growth Projections & Surprise History of EmbraerThe Zacks Consensus Estimate for ERJ’s 2025 earnings per share (EPS) has increased 9.3% to $2.24 in the past 30 days.The consensus estimate ...