Embraer deliveries increased 13% in 2023 and backlog reached US$18.7 billion, a US$1.2 billion growth
- Embraer delivered 181 aircraft in 2023, marking a 13% increase from 2022
- The backlog reached US$18.7 billion, the highest since 1Q18
- Executive Aviation had a book-to-bill in excess of 1.3:1 and a US$4.3 billion backlog, with sustained demand and strong customer acceptance
- South Korea selected the C-390 Millennium in the Large Transport Aircraft II public tender, reinforcing the company's sales momentum
- None.
Insights
The latest delivery figures from Embraer indicate a robust demand for executive jets, with a 13% year-over-year increase in aircraft supply. This growth is significant, considering the ongoing supply chain delays that have impacted the aerospace industry. The book-to-bill ratio exceeding 1:1 suggests a healthy order intake relative to deliveries, which is a positive sign for future revenue. The increase in the Services & Support backlog to a record $3.1 billion underscores the growing importance of after-sales services in generating stable, recurring revenue.
The defense segment is also noteworthy, with the C-390 Millennium's selection by South Korea marking a strategic expansion into the Asian market. This could pave the way for additional orders from the region, enhancing Embraer's global footprint in the military aviation market. The backlog increase across all segments, especially the 19% jump in Services & Support, indicates a solidified customer commitment and potential for sustained earnings.
Embraer's financial performance can be extrapolated from the reported delivery volumes and backlog growth. The backlog of $18.7 billion, the highest since Q1 2018, represents future revenues and provides visibility into the company's financial trajectory. The 10% YoY growth in the executive aviation backlog and the double-digit growth in light and medium jet deliveries reflect strong market positioning and the ability to capitalize on the growing demand for private aviation post-pandemic.
Investors should note the strategic significance of the South Korean C-390 Millennium order, as it not only contributes to the backlog but also enhances Embraer's credibility in international defense markets. The company's performance in the commercial segment, with more than double E2 deliveries, is indicative of its competitive edge in the regional jet market despite a slight shortfall from the upper end of the guidance range.
Embraer's achievement in delivering the largest volume of executive jets in seven years is a testament to the resilience and adaptability of the company in the face of industry-wide supply chain challenges. The doubling of E2 deliveries is particularly significant as it reflects the market's positive reception to Embraer's new generation of fuel-efficient regional jets, which are critical for airlines' fleet modernization strategies in a period of heightened environmental concerns.
The defense sector's expansion into Asia with the C-390 Millennium is a strategic move that diversifies Embraer's defense portfolio and reduces reliance on traditional markets. The aircraft's selection by multiple European countries within a year signals a strong market acceptance and potentially increases Embraer's leverage in future international defense contracts.
- Executive Aviation posted the largest delivery volume in 7 years
- C-390 was selected by
South Korea , which reinforced sales momentum - E2 deliveries more than doubled to 39 jets in 2023
- Executive and Commercial Aviation book-to-bill in excess of 1:1
- Services & Support backlog reached
US - the highest ever recorded$3.1 billion
SÃO JOSÉ DOS CAMPOS,
| Deliveries by Segment | 4Q22 | 4Q23 | 2022 | 2023 | 2023 Guidance |
| Executive Aviation | 50 | 49 | 102 | 115 | 120-130 |
Phenom 100 | 2 | 6 | 7 | 11 | |
Phenom 300 | 31 | 24 | 59 | 63 | |
| Light Jets | 33 | 30 | 66 | 74 | |
Praetor 500 | 6 | 10 | 15 | 20 | |
Praetor 600 | 11 | 9 | 21 | 21 | |
| Medium Jets | 17 | 19 | 36 | 41 | |
| Defense & Security | - | 1 | 1 | 2 | |
C-390 | - | 1 | 1 | 2 | |
| Commercial Aviation | 30 | 25 | 57 | 64 | 65-70 |
E195-E2 | 12 | 17 | 18 | 38 | |
E190-E2 | 1 | 1 | 1 | 1 | |
E175 | 14 | 7 | 35 | 25 | |
E190 | 3 | - | 3 | - | |
| Total | 80 | 75 | 160 | 181 | 185-200* |
*Excludes C-390 deliveries |
The company's backlog rose by
| Backlog by Segment - US$bn | 2022 | 2023 | YoY |
Executive Aviation | 3.9 | 4.3 | 10 % |
Defense & Security | 2.4 | 2.5 | 4 % |
Commercial Aviation | 8.6 | 8.8 | 2 % |
Services & Support | 2.6 | 3.1 | 19 % |
| Total | 17.5 | 18.7 | 7 % |
Executive Aviation continued its sales momentum with sustained demand across its entire product portfolio and strong customer acceptance in both retail and fleet markets. The business unit ended the year with a book-to-bill in excess of 1.3:1 and a
In Defense & Security,
The aircraft was also selected by
In Commercial Aviation, E-Jets family deliveries increased
Porter Airlines exercised its purchase rights and placed a firm order for 25 Embraer E195-E2 passenger jets, adding to their existing 50 aircraft firm orders. The Canadian airline now has a total of 46 firm orders to be delivered and 25 remaining purchase rights. Furthermore, the backlog now includes 4 E175s previously signed by American Airlines and 2 additional aircraft ordered in December.
| Backlog - Commercial Aviation 2023 | |||
| Aircraft Type | Firm Orders | Deliveries | Firm Order Backlog |
E195-E2 | 271 | 89 | 182 |
E190-E2 | 35 | 19 | 16 |
E175 | 853 | 753 | 100 |
| Total | 1,159 | 861 | 298 |
Services & Support ended 2023 with a backlog of
The growth momentum in the business unit accelerated further when it announced a deal which has doubled its maintenance service capacity for executive jets in
View original content:https://www.prnewswire.com/news-releases/embraer-deliveries-increased-13-in-2023-and-backlog-reached-us18-7-billion-a-us1-2-billion-growth-302048603.html
SOURCE Embraer S.A.
FAQ
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