Financial Data and Key Metrics Changes - The company achieved record revenue of $6.4 billion in 2024, marking a more than 20% increase compared to 2023 [12][30] - Adjusted EBIT for the year was $780 million, with an EBIT margin of 11.1%, surpassing the upper end of the previously revised guidance [32][73] - The net debt position at the end of 2024 was only $111 million, significantly reduced from $781 million at the end of 2023, resulting in a net debt-to-EBITDA ratio of 0.1 times [36][77] Business Line Data and Key Metrics Changes - In Commercial Aviation, revenues increased by 20% in 2024, with an adjusted EBIT of $55 million, representing a 182% increase from 2023 [21][62] - Executive Aviation saw a revenue expansion of 25% in 2024, with adjusted EBIT reaching $205 million, a 62% increase from the previous year [21][62] - Defense and Security experienced a 40% growth in revenue, with adjusted EBIT of $45 million, a 57% increase from 2023 [22][63] - Service and Support revenues increased by 15%, with adjusted EBIT of $270 million, a 25% increase from 2023 [22][64] Market Data and Key Metrics Changes - The company reported a company-wide book-to-bill ratio of 2.2, indicating strong order intake relative to deliveries [14] - The backlog for Executive Aviation increased by 70% year-on-year, while the backlog for Service and Support soared more than 65% [29][70] - The backlog for Defense & Security increased by 50%, supported by new orders for KC-390 Millennium and A-29 Super Tucano [29][70] Company Strategy and Development Direction - The company is committed to sustainable growth, with a 2025 guidance reflecting a similar successful formula of double-digit growth [13][55] - Strategic initiatives are focused on balancing production in 2025 and improving collaboration with suppliers to address supply chain challenges [19][61] - The company aims to maintain financial discipline and innovation across all areas while strengthening supply chain management [44][85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, expecting it to be even better than 2024, with a focus on efficiency and sales [44][86] - The company acknowledged ongoing supply chain constraints but emphasized improvements in internal processes and supplier relationships [134][135] - The management highlighted the importance of production leveling initiatives to enhance efficiency and cash generation [135] Other Important Information - The company plans to start paying dividends subject to shareholder approval, reflecting its improved financial position [13][55] - The adjusted net income for 2024 was $462 million, with a margin of 7.2% [36][76] - The company successfully issued a new bond of $650 million, aimed at extending the duration and reducing the cost of its debt [38][80] Q&A Session Summary Question: Guidance for 2025 EBIT margin - The recurring EBIT margin for 2024 was 7.6%, and the guidance for 2025 is between 7.5% and 8.3%, reflecting operational factors and market volatility [91][93] Question: Confirmation of EBIT margin and pricing environment - The recurring EBIT margin for 2024 was confirmed at 7.6%, and the backlog pricing environment is improving, with expectations for mid-single digit margins in the future [99][103] Question: Flexjet order details - The Flexjet order is entirely incremental and represents new business for the company, with deliveries expected to start in 2026 [120][121] Question: Cash flow guidance - The company anticipates free cash flow to be lower than previous years due to seasonality and increased working capital needs for higher revenue deliveries [123][125] Question: Supply chain constraints - Supply chain issues remain a challenge, but the company has implemented strategies to improve production planning and supplier collaboration [132][134]

Core Insights - Embraer S.A. reported its fourth quarter and fiscal year 2024 earnings results, highlighting significant revenue growth and improved financial metrics [1] Financial Performance - Total revenues reached US$2,311 million in Q4 2024 and US$6,395 million for the full year 2024, marking a 21% year-over-year increase and the highest level ever recorded [4] - Adjusted EBIT for Q4 2024 was US$265.1 million with an 11.5% margin, while for the full year, it was US$708.2 million with an 11.1% margin, exceeding guidance [4] - Adjusted free cash flow for Q4 2024 was US$995.5 million, and US$675.6 million for the full year, supported by increased aircraft deliveries and strong sales performance [4] Deliveries and Backlog - Embraer delivered 75 jets in Q4 2024, including 31 commercial jets and 44 executive jets, and a total of 206 aircraft for the year, a 14% increase from 181 aircraft delivered in the previous year [4] - The firm order backlog reached US$26.3 billion in Q4 2024, the largest in the company's history, representing over 40% year-over-year growth and 16% quarter-over-quarter growth [4] Guidance for 2025 - The company anticipates delivering between 77 and 85 commercial aircraft and between 145 and 155 executive aircraft in 2025 [4] - Projected total revenues for 2025 are expected to be in the range of US$7.0 to US$7.5 billion, with an adjusted EBIT margin between 7.5% and 8.3% [4]

Core Insights - Embraer S.A. has provided its guidance for the year 2025, outlining expectations for various segments of its business [1][2]. Group 1: 2025 Guidance - The company projects commercial aviation deliveries to be between 77 and 85 units [2]. - Executive aviation deliveries are expected to range from 145 to 155 units [2]. - Consolidated revenues are anticipated to be between 7.0 billion and 7.5 billion US dollars [2]. - The adjusted EBIT margin is projected to be between 7.5% and 8.3% [2]. - Free cash flow is expected to be 200 million US dollars or higher [2]. Group 2: Management Commentary - The company clarifies that the provided projections do not constitute a promise of performance but reflect the management's perception, subject to risks and uncertainties [3]. - Projections take into account various factors, including general economic, market, and industry conditions, which are beyond the company's control [3].

Core Viewpoint - Embraer S.A. has secured a contract with ANA Holdings for 15 E190-E2 aircraft, with an option for five more, expected to start deliveries in 2028, which is anticipated to enhance the company's revenue and profitability [1] Group 1: Embraer's E190-E2 Jets - The E190-E2 is a fuel-efficient aircraft that can reduce emissions by approximately 25% and is certified to operate with up to 50% sustainable aviation fuel (SAF), making it attractive for airlines focused on low carbon emissions [2] - The aircraft also offers lower noise levels, improving passenger comfort [2] - The recent order from ANA Holdings reflects a steady demand for the E190-E2 model [3] Group 2: Market Opportunities - Global air travel demand is on the rise, with the International Air Transport Association (IATA) projecting a 6.7% increase in passenger numbers, reaching 5.2 billion by 2025 [4] - This growth in passenger traffic is expected to drive demand for fuel-efficient jets like those produced by Embraer [4] Group 3: Commercial Aviation Backlog - Embraer's Commercial Aviation segment backlog was $10.2 billion at the end of Q4 2024, representing a 15% year-over-year increase, indicating strong demand for its aircraft [5] Group 4: Prospects for Other Aerospace Stocks - Other aerospace companies such as Airbus, Boeing, and Textron are also positioned to benefit from the increasing passenger traffic [6] - Airbus had a backlog of 8,658 commercial aircraft and delivered 766 jets in 2024, with a long-term earnings growth rate of 7.6% [7] - Boeing's backlog stood at $435 billion at the end of 2024, with a long-term earnings growth rate of 17.4% [8] - Textron's backlog totaled $7.8 billion, with a long-term earnings growth rate of 10% [9] Group 5: Stock Performance - Over the past three months, Embraer's stock has increased by 5.4%, contrasting with a 2.4% decline in the industry [10]

EMBRAER S.A.Publicly Held CompanyCNPJ/MF: 07.689.002/0001-89NIRE: 353.003.257-67 SÃO JOSÉ DOS CAMPOS, Brazil, Feb. 25, 2025 /PRNewswire/ -- EMBRAER S.A. (B3: EMBR3, NYSE: ERJ) ("Embraer"), in attention to Resolution CVM nº 44/2021 and in addition to the Material Fact disclosed on February 18, 2022, informs its shareholders and the market in general that today the Board of Directors approved an additional four-year pause in its E175-E2 jet development program. The re-programing of activities remains associat ...

Deal includes options for an additional five E190-E2s Deliveries to commence in 2028 First E2 order from Japan TOKYO, Feb. 25, 2025 /PRNewswire/ -- ANA Holdings Inc., has ordered 15 E190-E2s aircraft from Embraer (NYSE: ERJ / B3: EMBR3) with options for an additional five aircraft. The selection of the E190-E2 is part of ANA's fleet renewal plan. The economics and efficiency of the aircraft will enable the airline to enhance nationwide connectivity while providing improved space and comfort for passengers ...

SÃO PAULO, Feb. 20, 2025 /PRNewswire/ -- Embraer S.A. ("Embraer") (NYSE: ERJ) announces the consideration payable in connection with the previously announced offer to purchase for cash (the "Tender Offer") up to US$150,000,000 (the "Maximum Principal Amount") in aggregate principal amount of the outstanding 6.950% senior unsecured guaranteed notes due 2028 (the "2028 Notes") issued by Embraer Netherlands Finance B.V., fully, unconditionally and irrevocably guaranteed by Embraer. The Tender Offer is being ma ...

SÃO PAULO, Feb. 20, 2025 /PRNewswire/ -- Embraer S.A. ("Embraer") (NYSE: ERJ) announces the early results of its previously announced offer to purchase for cash up to US$150,000,000 in aggregate principal amount (the "Maximum Principal Amount") of the outstanding 6.950% senior unsecured guaranteed notes due 2028 (the "2028 Notes"), issued by Embraer Netherlands Finance B.V. ("Embraer Finance") and unconditionally and irrevocably guaranteed by Embraer (the "Tender Offer"). The Tender Offer was made upon the ...

SÃO PAULO, Feb. 12, 2025 /PRNewswire/ -- Embraer S.A. ("Embraer") (NYSE: ERJ) announces the expiration of its previously announced offer to purchase for cash any and all outstanding 5.400% senior unsecured guaranteed notes due 2027 (the "2027 Notes") issued by Embraer Netherlands Finance B.V. ("Embraer Finance"), fully, unconditionally and irrevocably guaranteed by Embraer (the "Tender Offer").The Tender Offer was made upon the terms and subject to the conditions set forth in the offer to purchase dated Feb ...

SÃO PAULO, Feb. 11, 2025 /PRNewswire/ -- Embraer S.A. ("Embraer") (NYSE: ERJ) announces the consideration to purchase for cash any and all of the outstanding 5.400% senior unsecured guaranteed notes due 2027 (the "2027 Notes") issued by Embraer Netherlands Finance B.V. ("Embraer Finance"), fully, unconditionally and irrevocably guaranteed by Embraer (the "Tender Offer").The Tender Offer is being made pursuant to the terms and subject to the conditions set forth in the offer to purchase dated February 5, 202 ...