Embraer(ERJ) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for the nine-month period ended September 30, 2024, increased to $4,083.2 million, up 24$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$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$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$4,223.9 million on December 31, 2023, to $4,453.1 million on September 30, 2024, an increase of 5.4$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$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$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$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].