Embraer announces a solid set of results across its business divisions for 2023

by AvioBlog · 18 Marzo 2024

Brazilian aircraft manufacturer Embraer has revealed its results for the final quarter of 2023 (Q4) as well as its 2023 full-year results. The results show a solid performance across the spectrum of activities in which Embraer participates.

In all, Embraer delivered 75 jets in Q4 of 2023, of which 25 were commercial aircraft, 49 were executive jets and one was a military C-390. In 2023, the company delivered a total of 181 jets, of which 64 were commercial aircraft, 115 were executive jets (74 light and 41 medium) and two were military C-390s.

Embraer’s deliveries increased 13% year-on-year when compared to the 160 jets in 2022. However, the company cited continuing supply chain delays which have negatively impacted its overall 2023 results.

The company’s firm order backlog as of December 31, 2023, stood at a value of $18.7 billion, the highest number recorded over the past six years by the company. In terms of 2024, the manufacturer is aiming to deliver between 72 and 80 commercial aircraft, along with between 125 and 135 executive jets.

The company reported consolidated revenues of $5,269 million for 2023 representing an increase of 16% over 2022. This breaks down as Defense & Security (25%), Commercial Aviation (20%), Executive Aviation (13%) and Services & Support (12%). Total revenues were within the $5.2 to US$5.7 billion forecasted figure for the year.

Total revenues totaled $1,975 million in 4Q23 and $5,269 million for the whole of 2023, the latter representing an increase of 16% over 2022. All business units saw double-digit percentage revenue and volume growth year-on-year. Defense, which posted 25% growth, was the highlight, followed closely by Commercial Aviation with 20%.

Divisional breakdown and 2023 highlights

Breaking the figures down further, the company’s Executive Aviation division delivered 30 light and 19 medium jets in Q4 2023, totaling 49 aircraft for the period and 115 in 2023, an increase of 13% compared to the same period in 2022, when 102 jets were delivered. The Phenom 300 was the most delivered light jet for the 12th consecutive year and the most delivered twin jet for the fourth consecutive year.

In Asia, South Korea announced Embraer’s C-390 Millennium as the winner of the Large Transport Aircraft (LTA) public tender to provide new military transport aircraft. The country is the C-390 Millennium’s seventh customer and the first in the region. The contract includes an undisclosed number of aircraft, as well as a services & support package that includes training, ground support equipment, and spare parts.

Meanwhile, Embraer delivered 25 commercial jets in 4Q23, and 64 aircraft in 2023, a figure that is 12% higher than in the previous year.

Concerning commercial aviation, in North America, Porter Airlines exercised its purchase rights to place a firm order for 25 Embraer E195-E2 passenger jets, which added to its 50 existing firm orders. Porter will use the new aircraft to extend service to destinations throughout the continent. The deal, valued at US$2.1 billion at list price, entered Embraer’s backlog in 4Q23, and increased the airline’s firm orders with Embraer to 75 aircraft, with 25 purchase rights remaining.

In Asia, Embraer’s E190-E2 and E195-E2 attained type certification from the Civil Aviation Authority of Singapore (CAAS). The aircraft are the world’s quietest and most fuel-efficient single-aisle aircraft. Scoot, the low-cost subsidiary of Singapore Airlines, should begin to operate the E190-E2 in 2024.

Last, but not least, in Europe, the E195-E2 received certification for a Steep Approach into London-City Airport from EASA (European Aviation Safety Agency). This achievement is a significant development, which allows airlines to operate the E195-E2 at London City Airport (LCY), known for its challenging approach and short runway. Together with the E190-E2, which received Steep Approach certification in 2021, both members of the E2 family are now approved for operations from LCY.

Elsewhere, Embraer’s Services & Support division reached a significant milestone in the Commercial Aviation segment in 4Q23 with the advancement of the program to convert passenger aircraft to freighters, which marked the beginning of a new phase with the unveiling of a new livery and the start of ground testing.

The business unit continued to accelerate its expansion and it has doubled the capacity for executive jet maintenance services in the United States. The expansion will support the continuous growth of its customer base through the addition of three executive jet Maintenance, Repair, and Overhaul (MRO) facilities in Dallas Love Field (DAL), Cleveland (CLE), and Sanford (SFD)

Elsewhere, Embraer-CAE Training Services (ECTS) announced a strategic expansion of its training capacity with the introduction of two Phenom 300 flight simulators. The main objective of the company’s joint venture remains to meet the growing demand for executive jet training in the North American and European markets, and “reinforces its commitment to its executive aviation customers”.