Embraer marginally profitable in 2023; E2 secures 120-minute ETOPS approval

The Brazilian aircraft manufacturer Embraer reversed its fortunes in 2023, reporting a full-year profit as it expanded aircraft production, grew various order backlogs, and enjoyed a series of one-time tax benefits.

Revenue at the company grew 16.0% year-on-year, to USD5.3 billion, with all of Embraer's business segments reporting double digit revenue growth.

Revenue at Embraer Commercial Aviation, the company's largest business segment, grew 19.6%, to USD1846.7 million (35.1% of total revenue), due to 12% growth in aircraft deliveries. Services and Support revenue rose 11.9%, with the company reporting MRO capacity expansion in the US and the rest of the world. Defence revenues were up 25%, and Executive Aviation revenue grew 13%.

Adjusted EBIT at Embraer was USD350 million - compared to an Adjusted EBIT loss of USD110.5 million in 2022. Adjusted EBITDA was USD561.9 million. Adjusted EBIT margin was 6.7% and EBITDA margin was 10.7%, which met company guidance for the year.

Net income was USD79.5 million, up from a net profit of USD38.5 million in 2022. Embraer reported that it had enjoyed a series of tax efficiency gains in several of its business segments, including Executive Aviation, Commercial Aviation and Services & Support.