March 18, 2024 by AirfieldNews
TweetEmbraer, the Brazilian aerospace giant, celebrated a remarkable turnaround in 2023, reporting a profit of $164 million, a significant recovery from a $185 million loss in 2022. This financial rebound was driven by an accelerated delivery schedule of new commercial and business jets, coupled with a notably strong performance in the fourth quarter.
The company's revenue surged to $5.3 billion, marking a 16% increase year-on-year, attributed in part to the rise in aircraft deliveries. Throughout 2023, Embraer delivered a total of 179 civilian aircraft, comprising 64 commercial jets and 115 business aircraft, compared to 159 deliveries (57 commercial and 102 business jets) the previous year.
Despite facing losses in the initial half of the year, Embraer's fortunes shifted dramatically in the latter part, culminating in a $193 million profit in the fourth quarter alone. This upswing in financial performance underscored the company's resilience and strategic execution.
The commercial aircraft division was a significant contributor to this success, generating $1.8 billion in revenue, a 20% increase from the previous year. The executive aviation sector also saw a revenue increase of 13% year-on-year, amounting to $1.4 billion. Additionally, the defence and security, as well as aftermarket services and support units, recorded revenue increases of 25% and 12%, respectively.
Looking ahead to 2024, Embraer projects its revenue will climb even further, estimating a range of $6-6.4 billion. The company also expects to deliver between 72 to 80 commercial aircraft and 125 to 135 business jets, totaling 197 to 215 deliveries for the year.
Embraer concluded 2023 with a robust backlog of firm aircraft orders valued at $18.7 billion, demonstrating a growth from $17.5 billion a year earlier. This financial recovery and optimistic outlook highlight Embraer's strong position in the aerospace industry, fueled by strategic expansions in both the commercial and business aviation sectors.
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