Embraer deliveries increased 13% in 2023 and backlog reached US$18.7 billion, a US$1.2 billion growth
-- 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$3.1 billion - the highest ever
recorded
SÃO JOSÉ DOS CAMPOS, Brazil, Jan. 30, 2024 /PRNewswire/ -- Embraer (NYSE: ERJ; B3: EMBR3) delivered 75 aircraft in 4Q23, with 49 executive jets (30 light and 19 medium), 25 commercial jets and 1 military C-390 jet. In 2023, Embraer supplied 181 aircraft, an increase of 13% compared to 2022 when the company delivered 160. The company continues to face supply chain delays which have affected 2023 deliveries.
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 US$1.2 billion YoY, reaching a total of US$18.7 billion in 2023 - the highest number recorded since 1Q18.
Backlog by Segment - US$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 US$4.3 billion backlog, a US$400 million growth YoY. The 74 deliveries of light jets in 2023 were 12% higher YoY and the largest volume in 7 years. Moreover, the 41 deliveries of medium jets also posted double-digit annual growth at 14%.
In Defense & Security, South Korea was in the spotlight with the victory of the C-390 Millennium in the Large Transport Aircraft (LTA) II public tender to provide the new military transport aircraft. The country is the C-390 Millennium's first customer in Asia. Furthermore, late last year, the first NATO-configured KC-390 Millenium entered into service for the Portuguese Air Force.
The aircraft was also selected by Austria and Czech Republic in 2023, and by the Netherlands in 2022. Negotiations about the 11 aircraft have not yet been incorporated into Embraer Defense & Security's backlog, which represents a significant potential for the coming quarters. In 4Q23, the business' unit backlog is US$2.5 billion, a US$100 million growth YoY.
In Commercial Aviation, E-Jets family deliveries increased 12% YoY from 57 jets in 2022 to 64 in 2023, supported by a book-to-bill in excess of 1.1:1. The highlight was the E2 group whose deliveries more than doubled from 19 aircraft in 2022 to 39 in 2023. The business unit backlog reached 298 aircraft in 4Q23 for a total of US$8.8 billion, a US$200 million growth YoY.
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 Deliveries Firm Order
Orders 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 US$3.1 billion, a US$400 million growth YoY - the highest level ever recorded. The backlog includes renewed contracts of integrated logistical support services and comprehensive airframe maintenance programs, such as the Pool Program for Commercial Aviation and Embraer Executive Care for Executive Aviation. These long-term contracts in the backlog cover mainly pool contracts and other services as spare parts, repair, maintenance, and technical services.
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 the United States. The expansion will support the continued growth of its customer base through the addition of 3 Executive Aviation Maintenance, Repair and Overhaul (MRO) facilities in Dallas Love Field, TX, Cleveland, OH, and Sanford, FL.
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SOURCE Embraer S.A.
