The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Embraer (ERJ) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.Embraer is one of 53 individual stocks in the Aerospace sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 ind ...

Core Insights - Embraer reported a record backlog of US$26.4 billion in Q1 2025, surpassing the previous quarter's all-time high [1] Backlog by Segment - Commercial Aviation backlog reached US$10.0 billion, a 2% decrease quarter-over-quarter and a 10% decrease year-over-year [2][5] - Executive Jets backlog set a new record at US$7.6 billion, a 3% increase from the previous quarter and a 66% increase year-over-year [2][7] - Defense & Security backlog remained stable at US$4.2 billion, reflecting a 73% increase year-over-year [2][9] - Services & Support backlog totaled US$4.6 billion, showing stability compared to the previous quarter [2][13] Deliveries - Embraer delivered 30 aircraft in Q1 2025, a 20% increase from 25 aircraft delivered in Q1 2024 [2] - In Executive Aviation, 23 jets were delivered, which is 28% higher than the 18 jets delivered in Q1 2024 [7] - Commercial Aviation delivered 7 new aircraft, representing 9% of the midpoint of the full-year guidance [4] Orders and Contracts - ANA Holdings Inc. placed an order for 15 E190-E2 aircraft with options for 5 additional jets, expected to be included in the backlog in the second half of 2025 [3] - The Uruguayan Air Force converted options for 5 A-29 Super Tucano aircraft into firm orders during Q1 2025 [9] Industry Recognition - The Phenom 300 series was recognized as the world's best-selling and most delivered light jet for the 13th consecutive year [8]

Core Insights - The article highlights the performance of Embraer S.A. (NYSE: ERJ), which has gained 18% since a Buy rating was issued in December, contrasting with a 14% loss in the S&P 500 during the same period [1]. Group 1: Company Performance - Embraer S.A. has shown significant stock appreciation, outperforming the broader market [1]. - The analysis indicates that the aerospace, defense, and airline sectors have substantial growth prospects, which may positively influence investment opportunities [1]. Group 2: Analyst Background - The analyst has a background in aerospace engineering and focuses on providing data-informed analysis within the aerospace, defense, and airline industries [1]. - The investing group aims to identify investment opportunities and offers access to data analytics monitors to support their analysis [1].

Analyst's Disclosure: I/we have a beneficial long position in the shares of ERJ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any in ...

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].

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 ...