Embraer, the Brazilian aerospace conglomerate, is set for a significant financial upswing in 2024, according to the company's CEO. Despite facing losses, the company's financial outlook appears positive. The CEO predicts a revenue increase of about 20% in 2024.
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Financial Performance
Embraer recorded a revenue of $4.5 billion in 2022, marking an 8% growth from its 2021 revenue of $4.2 billion. However, the company ended the year with a net loss of $185.5 million, a substantial increase from its $44.7 million losses in 2021.
Future Projections
For 2024, revenues are expected to be in the range of $5.2 billion to $5.7 billion. This projection represents an increase of approximately 20% from the 2022 revenue. The adjusted EBIT margin is forecasted to be between 6.4% and 7.4%, with adjusted EBITDA margins of 10.0% to 11.0%.
Production and Delivery
Embraer delivered 159 jets in 2022, a 12.7% increase compared to 2021. This included 57 commercial aircraft, a 19% increase from 2021, and 102 executive jets, up 10% from the previous year. The company projects executive jet deliveries to be between 120 and 130 aircraft in 2024, at least an 18% increase from 2022.
Market Expansion
Embraer is bullish about future growth, particularly in Asian markets like China and India. The company's E190-E2 and E195-E2 jets have been successful, and the Civil Aviation Administration of China's certification of the E190-E2 has opened doors for Embraer in the Chinese market.
Conclusion
Despite supply chain constraints and losses, Embraer's financial results look positive. With a strategic focus on expanding in Asian markets and a strong order backlog, the company is well-positioned for growth in 2024.
