Embraer announced financial results for 2023 wherein it reported 13% year-over-year growth in executive jet deliveries reaching 115 aircraft compared to 102 in 2022.
Of the total 115 executive aircraft delivered in the previous year, 74 were light jets whereas the remaining 41 were medium jets.
Higher volumes translated into 13%YoY growth in Embraer’s revenues from executive aviation, reaching $1.4bn. However, the segment’s gross margin dropped from 23.4% to 19.4%YoY owing to product mix (proportionally more medium rather than light jets) and one-time tax benefits.
The Brazilian multinational aerospace company said the positive performance comes amidst ongoing supply chain issues impacting the aviation industry. The company also reported a strong backlog for executive jets, exceeding $4.3bn, reflecting sustained demand across its product portfolio. Moreover, the executive aviation segment ended the year with a book-to-bill in excess of 1.3:1.
Embraer’s Phenom 300 remained the most delivered light jet for the 12th consecutive year and the most delivered twin-jet for the fourth year running. This highlights the continued popularity of this light jet model in the executive aviation market.
The company said that its positive sales momentum to strong customer acceptance in both retail and fleet markets.
Embraer provided a glimpse into the future of its executive jet business with the announcement of the first Praetor 600 delivery to South Korea’s Flight Inspection Services Center. This variant of the Praetor jet is equipped for a wide range of flight inspection tasks, showcasing the adaptability of Embraer’s executive jets beyond traditional passenger transport.
While Embraer’s executive jet business is experiencing a positive trend, supply chain disruptions continue to pose a challenge. The company said that it is working to mitigate these issues and ensure timely deliveries to customers.
Meanwhile, Embraer reported total revenue of $5.3bn for 2023, reflecting a 16% increase year-over-year. Each of the company’s four business units contributed to this growth.
Defense & Security saw the highest increase at 25%, bringing in $516m. Commercial Aviation followed closely with a 20% rise in revenue, totalling $1.85bn. Rounding out the revenue figures, Services & Support achieved $1.42bn, reflecting a 12% growth.
