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Business Jet Deliveries Drive Strong Q1 Revenues at Embraer
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The cost of production rate increases dragged on earnings for the Brazilian group
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Embraer's management expects stronger revenues and earnings in 2024, boosted by increased deliveries of E-Jet airliners and Phenom and Praetor business jets.
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Embraer’s Executive Aviation division was a strong contributor to growing first-quarter revenues announced by the Brazilian aerospace group on Tuesday. The $897 million in revenues for the first three months of 2024 represented a 25% year-over-year increase, with business jet deliveries standing out as the best rate for the past eight years.

During the first quarter, the company delivered 18 executive aircraft and seven airliners, representing an increase of 67% over the same period last year. Nonetheless, group earnings were 4.4% down on the first quarter of 2023 at $6.8 million.

Reporting to analysts, Embraer management highlighted a negative free cash flow of $346 million due to costs associated with spooling up production for high delivery rates for the remainder of this year. The company confirmed estimates released in April that it aims to deliver between 72 and 80 of its E-Jets family of airliners and between 125 and 135 of the Phenom and Praetor business jets.

For the full financial year, Embraer’s guidance anticipates group-wide revenues of between $6 and $6.4 billion, with an adjusted earnings margin of 6.5 to 7.5%.

Eve Air Mobility, the eVTOL aircraft developer in which Embraer is the main shareholder, reported a stable net loss of $25.3 million for the first quarter. Expenses increased over this period due to increased spending on efforts to achieve type certification for its four-passenger vehicle.

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