- News
- Mar 19, 2024
- 4 min read
Embraer Expects Solid Growth and a Larger Backlog
Embraer’s business aviation division reported a 13% increase in deliveries between 2022 and 2023 despite supply chain difficulties. The Brazilian manufacturer expects a similar increase this year.
Although Embraer’s business aviation division fell short of its 2022 delivery forecast last year, the company still increased its year-over-year deliveries by 13%, according to the company’s fourth-quarter and year-end 2023 investor presentation.
Last year, the Brazilian aircraft manufacturer delivered 115 private jets, including 41 aircraft in the fourth quarter, 13 more than in 2022. It fell five aircraft short of the lower end of its forecast production range of 120–130 business jets. The company’s president and CEO, Francisco Neto, attributed the shortfall to continuing supply chain problems.
“For business aviation, the book-to-bill ratio exceeds 1.3:1, while the backlog stands at $4.3 billion,” he told the audience. “In terms of deliveries, the business unit reported its highest volume in seven years.” Neto noted that the Phenom 300 light jet had been the best-selling aircraft in its class for 12 consecutive years and the best-selling twin-engine aircraft for the fourth consecutive year.
The business jet division ended the year with a backlog of $4.3 billion, $400 million more than in the previous year. For 2024, the manufacturer forecasts deliveries of between 125 and 135 private jets.
“Capital allocation remains focused on higher-return segments through projects such as expanding our production capabilities in commercial aviation, as well as services and support,” explained the company’s chief financial officer, Antonio Carlos Garcia. Each of these two divisions accounted for 27% of the manufacturer’s net revenue in 2024.
Embraer’s services and support division ended 2023 with a record backlog of $3.1 billion, having increased it by $500 million last year. “In 2023, this business unit demonstrated strong growth momentum,” Neto explained, noting that the company had opened three new maintenance and repair centers specializing in business jets in the U.S., doubling its maintenance capacity there to support the growth of its customer base.
“I am proud to say that 2023 was an outstanding year for Embraer,” Neto said. “This marks the beginning of a new cycle for the company—a phase focused on sustainable growth so that we can fully realize our potential. In 2024, we will celebrate Embraer’s 55th anniversary in very good shape.”
Although Embraer’s business aviation division fell short of its 2022 delivery forecast last year, the company still increased its year-over-year deliveries by 13%, according to the company’s fourth-quarter and year-end 2023 investor presentation.
Last year, the Brazilian aircraft manufacturer delivered 115 private jets, including 41 aircraft in the fourth quarter, 13 more than in 2022. It fell five aircraft short of the lower end of its forecast production range of 120–130 business jets. The company’s president and CEO, Francisco Neto, attributed the shortfall to continuing supply chain problems.
“For business aviation, the book-to-bill ratio exceeds 1.3:1, while the backlog stands at $4.3 billion,” he told the audience. “In terms of deliveries, the business unit reported its highest volume in seven years.” Neto noted that the Phenom 300 light jet had been the best-selling aircraft in its class for 12 consecutive years and the best-selling twin-engine aircraft for the fourth consecutive year.
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The business jet division ended the year with a backlog of $4.3 billion, $400 million more than in the previous year. For 2024, the manufacturer forecasts deliveries of between 125 and 135 private jets.
“Capital allocation remains focused on higher-return segments through projects such as expanding our production capabilities in commercial aviation, as well as services and support,” explained the company’s chief financial officer, Antonio Carlos Garcia. Each of these two divisions accounted for 27% of the manufacturer’s net revenue in 2024.
Embraer’s services and support division ended 2023 with a record backlog of $3.1 billion, having increased it by $500 million last year. “In 2023, this business unit demonstrated strong growth momentum,” Neto explained, noting that the company had opened three new maintenance and repair centers specializing in business jets in the U.S., doubling its maintenance capacity there to support the growth of its customer base.
“I am proud to say that 2023 was an outstanding year for Embraer,” Neto said. “This marks the beginning of a new cycle for the company—a phase focused on sustainable growth so that we can fully realize our potential. In 2024, we will celebrate Embraer’s 55th anniversary in very good shape.”
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