While Embraer’s executive jet division missed its 2022 guidance for deliveries last year, the company still increased its year-over-year deliveries by 13 percent, according to the company’s fourth-quarter/year-end 2023 investor call on Monday.
The Brazilian airframer handed over 115 private jets last year—including 41 in the fourth quarter—an increase of 13 units over its 2022 tally. It was five aircraft shy of the low end of its predicted output of 120 to 130 executive jets, a shortfall company president and CEO Francisco Neto attributed to lingering supply-chain issues.
“Executive aviation registered a book-to-bill in excess of 1:1.3 with a strong backlog of $4.3 billion,” he told the audience. “On deliveries, the business unit posted the largest volume in seven years.” Neto noted that the company’s Phenom 300 light jet was the best-selling aircraft in its class for 12 straight years and the most-delivered twinjet for the fourth consecutive year.
The executive jet division ended the year with a $4.3 billion backlog, an increase of $400 million year-over-year. For 2024, the manufacturer predicts deliveries between 125 and 135 private jets.
"Capital allocation continues to be focused on segments with higher returns with projects such as expansion of our production capabilities in executive aviation and service and support," explained company CFO Antonio Carlos Garcia. Those two divisions each accounted for 27 percent of the manufacturer's net revenues in 2024.
Embraer’s service and support division finished 2023 with a record backlog of $3.1 billion, having expanded it by $500 million last year. “In 2023, the business unit experienced solid growth momentum,” explained Neto, pointing out that the company added three new MROs dedicated to executive jets in the U.S., doubling its maintenance capacity there to support the growth of its customer base.
“I am proud to say 2023 was a remarkable year for Embraer,” said Neto. “It represented the start of a new cycle for the company—a phase focused on sustainable growth to capture our full potential. In 2024, we will celebrate Embraer’s 55th anniversary in very good shape.”