Embraer S.A. ERJ reported fourth-quarter 2024 adjusted earnings of 94 cents per American Depository Share (ADS), which beat the Zacks Consensus Estimate of 47 cents by 100%. The bottom line also improved a solid 123.8% from 42 cents per share reported in the prior-year quarter.

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The company registered quarterly GAAP earnings of 25 cents per ADS compared with $1.05 in the fourth quarter of 2023.

ERJ reported 2024 adjusted earnings of $2.51 per share, which were much higher than the year-ago figure of 43 cents.

Embraer’s Total Revenues

Revenues totaled $2.31 billion, up 17% year over year, driven by higher revenues from the company’s Executive Aviation, Defense and Security, Commercial Aviation and Services & Support segments. The figure also surpassed the Zacks Consensus Estimate of $2.19 billion by 5.8%.

The company reported revenues of $6.39 billion in 2024, which were higher than $5.27 billion in 2023.

Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise

Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote

ERJ’s Order & Delivery

Embraer delivered 75 jets in the quarter. It delivered 31 commercial and 44 executive (22 light and 22 midsize) jets compared with 25 commercial and 49 executive (30 light and 19 midsize) jets in the prior-year quarter. The company delivered no military jet in the fourth quarter, while in the prior-year quarter it had delivered only one C-390 jet.

The backlog at the end of the fourth quarter was $26.3 billion, much higher than the prior-year quarter’s figure of $18.7 billion.

ERJ’s Segmental Details

Executive Aviation: This segment recorded revenues worth $626 million, up 4% year over year.

Defense & Security: This unit generated revenues of $233.4 million, which improved 15% year over year. The upside was driven by solid revenue recognition from the A-29 Super Tucano jet program.

Commercial Aviation: This segment recorded revenues worth $981 million, up 31% year over year. This upside was driven by higher aircraft deliveries.

Services & Support: This segment recorded revenues worth $441.1 million, up 14% year over year, on account of higher fleet utilization and ramp-up of OGMA GTF.

Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment were $30 million, down 8% year over year. This downside was due to lower volumes from its cyber business and an unfavorable foreign exchange rate.

Operational Highlights for ERJ

Embraer’s operating income amounted to $258.3 million compared with $209 million in the fourth quarter of 2023.

The company posted an adjusted EBITDA of $327.5 million, which increased 29.2% from the year-earlier quarter’s figure.

Financial Update for ERJ

As of Dec. 31, 2024, ERJ’s cash and cash equivalents amounted to $1.56 billion compared with $1.63 billion as of Dec. 31, 2023.

Its adjusted free cash flow (without Eve) for 2024 totaled $675.6 million compared with $318.3 million in the prior-year period.

The net cash flow from operating activities amounted to $871.3 million during 2024 compared with $617 billion at the end of 2023.

Embraer’s 2025 Guidance

Embraer introduced its guidance for 2025.

It expects to deliver 77-85 commercial jets and 145-155 Executive Aviation jets.

ERJ anticipates generating revenues in the range of $7.0-$7.5 billion. The Zacks Consensus Estimate for revenues is pegged at $7.28 billion, which lies above the midpoint of the company’s guided range.

Embraer expects the adjusted EBIT margin to be between 7.5% and 8.3%.

Adjusted free cash flow is projected to be $200 million or more.

ERJ’s Zacks Rank

Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.

Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.

Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.

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Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report

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