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Embraer To Resume Dividends After Six-Year Pause As Deliveries Soar
(MENAFN- The Rio Times) Brazilian aircraft manufacturer Embraer announced plans to resume dividend payments in 2025 after a six-year hiatus. The company stopped dividend distributions in late 2018 when it reported its first loss in 21 years.
Embraer closed 2024 with record-breaking revenue of $6.39 billion, marking a 21% increase from 2023. The company delivered 206 aircraft last year, including 73 commercial jets, 130 executive jets, and three military transport aircraft.
The planemaker aims to significantly increase production in 2025. Embraer targets between 77 and 85 commercial aircraft deliveries, up from 73 in 2024. The executive jet segment expects to deliver between 145 and 155 aircraft, compared to 130 last year.
"We see 2025 as even better than 2024 in all aspects," stated Francisco Gomes Neto, Embraer's CEO. The company projects total revenues between $7 billion and $7.5 billion for 2025.
Investor confidence grows as Moody 's recently upgraded Embraer's credit rating to investment grade with a stable outlook. The firm order backlog reached an all-time high of $26.3 billion, reflecting strong market demand.
Embraer Eyes Growth and Shareholder Rewards
Embraer will hold a shareholder meeting in April to approve the mandatory 25% dividend distribution required under Brazilian regulations. The company could potentially offer higher dividends through Brazil's interest on capital mechanism if profits continue to grow.
Recent major deals fuel Embraer 's positive outlook. Flexjet placed a historic $7 billion order for 182 executive aircraft in February. All Nippon Airways also ordered 20 E190-E2 aircraft, marking the airline's first integration of Embraer jets into its fleet.
Supply chain bottlenecks remain a challenge but continue to improve. The company generated $708.2 million in adjusted earnings before interest and taxes in 2024, exceeding forecasts by 11%.
With these strong fundamentals, Embraer positions itself for substantial growth in 2025 while rewarding patient shareholders after six lean years.
Embraer closed 2024 with record-breaking revenue of $6.39 billion, marking a 21% increase from 2023. The company delivered 206 aircraft last year, including 73 commercial jets, 130 executive jets, and three military transport aircraft.
The planemaker aims to significantly increase production in 2025. Embraer targets between 77 and 85 commercial aircraft deliveries, up from 73 in 2024. The executive jet segment expects to deliver between 145 and 155 aircraft, compared to 130 last year.
"We see 2025 as even better than 2024 in all aspects," stated Francisco Gomes Neto, Embraer's CEO. The company projects total revenues between $7 billion and $7.5 billion for 2025.
Investor confidence grows as Moody 's recently upgraded Embraer's credit rating to investment grade with a stable outlook. The firm order backlog reached an all-time high of $26.3 billion, reflecting strong market demand.
Embraer Eyes Growth and Shareholder Rewards
Embraer will hold a shareholder meeting in April to approve the mandatory 25% dividend distribution required under Brazilian regulations. The company could potentially offer higher dividends through Brazil's interest on capital mechanism if profits continue to grow.
Recent major deals fuel Embraer 's positive outlook. Flexjet placed a historic $7 billion order for 182 executive aircraft in February. All Nippon Airways also ordered 20 E190-E2 aircraft, marking the airline's first integration of Embraer jets into its fleet.
Supply chain bottlenecks remain a challenge but continue to improve. The company generated $708.2 million in adjusted earnings before interest and taxes in 2024, exceeding forecasts by 11%.
With these strong fundamentals, Embraer positions itself for substantial growth in 2025 while rewarding patient shareholders after six lean years.
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