Embraer's Q4 Earnings Beat Estimates, Revenues Increase Y/Y

Core Insights - Embraer S.A. reported strong fourth-quarter 2024 adjusted earnings of 94 cents per American Depository Share (ADS), significantly exceeding the Zacks Consensus Estimate of 47 cents by 100% and improving 123.8% from 42 cents per share in the prior-year quarter [1][2] Financial Performance - The company achieved total revenues of $2.31 billion in the fourth quarter, marking a 17$2.19 billion by 5.8% [3] - For the full year 2024, Embraer reported revenues of $6.39 billion, up from$5.27 billion in 2023 [3] Order and Delivery - Embraer delivered 75 jets in the fourth quarter, including 31 commercial and 44 executive jets, compared to 25 commercial and 49 executive jets in the prior-year quarter [4] - The backlog at the end of the fourth quarter stood at $26.3 billion, significantly higher than$18.7 billion in the prior-year quarter [4] Segment Performance - Executive Aviation segment revenues reached $626 million, up 4$233.4 million, a 15% increase year over year, driven by the A-29 Super Tucano jet program [5] - Commercial Aviation segment revenues were $981 million, reflecting a 31$441.1 million, up 14% year over year [6] - Other segments, including Agricultural Aviation and cyber division Tempest, saw revenues decline to $30 million, down 8$258.3 million, compared to $209 million in the same quarter of 2023 [7] - The adjusted EBITDA for the quarter was$327.5 million, representing a 29.2% increase from the previous year [7] Financial Update - As of December 31, 2024, cash and cash equivalents totaled $1.56 billion, slightly down from$1.63 billion a year earlier [8] - Adjusted free cash flow for 2024 was $675.6 million, up from$318.3 million in the prior-year period [8] - Net cash flow from operating activities amounted to $871.3 million during 2024, compared to$617 billion at the end of 2023 [8] 2025 Guidance - Embraer expects to deliver between 77-85 commercial jets and 145-155 Executive Aviation jets in 2025 [9] - The company anticipates revenues in the range of $7.0-$7.5 billion, with the Zacks Consensus Estimate at $7.28 billion [9] - Adjusted EBIT margin is projected to be between 7.5$200 million [9]