Investment Rating - The report suggests a positive outlook for the aerospace and defense sectors, highlighting potential investment opportunities in companies like Howmet Aerospace, Loar Holdings, and Raytheon Technologies [6][7]. Core Insights - The AI data center sector is experiencing significant investment, with major companies like Microsoft and Meta planning to invest over $345 billion in AI infrastructure by 2025, indicating a potential bubble in the market [2][23]. - The aerospace industry is showing signs of recovery, with Airbus delivering approximately 70 aircraft in March, reflecting an 11% year-on-year increase [29]. - The defense sector is witnessing substantial contracts, such as Lockheed Martin receiving a $4.94 billion contract for precision strike missiles, indicating strong government spending in defense [35]. Summary by Sections Global Market Review - The U.S. stock market has shown a cautious sentiment, with the S&P 500 index declining over 1% recently, reflecting a risk-off attitude among investors [13]. Infrastructure - The AI data center sector is facing risks of overheating, with significant investments planned by major tech companies [23]. - The PJM Interconnection has released a reliability resource plan to ensure new power plants can connect to the grid efficiently [26]. - Poland is advised to delay the closure of coal plants to avoid a power shortage by 2030 [27]. Industrial Equipment - The price index for electric motors and generators in the U.S. has shown a year-on-year increase of 26% [20]. - China's transformer exports in early 2025 saw a significant increase of 48% year-on-year, indicating strong demand [57]. Energy - U.S. electricity prices have decreased by 35.5% recently, while the market for natural gas is showing mixed signals [5]. - The average spot price for uranium in the global market has decreased by 7.9% month-on-month [4]. Aerospace - The price index for aircraft engines and components has remained stable, with a year-on-year increase of 6.2% [31]. - The aerospace sector is actively pursuing sustainable development, facing challenges in achieving net-zero emissions [29]. Defense - The U.S. government defense spending price index has shown a year-on-year increase of 2.1% [36]. - The defense industry is experiencing a surge in contract awards, particularly in precision strike and unmanned systems [35].

Financial Performance - Total revenue for the nine-month period ended September 30, 2024, increased to $4,083.2 million, up 24% from $3,293.4 million in the same period of 2023[7]. - Gross profit for the nine-month period was $723.5 million, representing a 27% increase compared to $570.1 million in the prior year[7]. - Operating income before financial results for the nine-month period rose to $409.2 million, significantly up from $105.5 million in the same period of 2023[7]. - Net income for the nine-month period was $316.6 million, compared to a loss of $34.5 million in the same period of 2023[7]. - The company reported a basic earnings per share of $0.42 for the nine-month period, compared to a loss per share of $0.04 in the same period of 2023[7]. - For the nine months ended September 30, 2024, Embraer reported an income of $316.6 million, a significant recovery from a loss of $34.5 million in the same period of 2023, representing a turnaround of approximately 1017%[13]. - Total comprehensive loss for the period was $298.3 million, compared to a loss of $28.1 million in the previous year, indicating a deterioration in overall financial performance[13]. - The company reported a net foreign exchange loss of $19.6 million for the period, compared to a loss of $1.9 million in the previous year[187]. Cash and Liquidity - Cash and cash equivalents decreased to $831.5 million as of September 30, 2024, down from $1,629.2 million at the end of 2023[3]. - Cash and cash equivalents at the end of the period were $825.0 million, down from $1,023.9 million at the end of September 2023, reflecting a decrease of approximately 19.4%[13]. - The company reported a significant increase in fixed deposits, which decreased from $1,168.8 million to $421.6 million, indicating a shift in liquidity management[32]. - The company has cash equivalents and financial investments totaling $1,771.4 million, with 93.37% indexed to fixed rates[166]. - As of September 30, 2024, cash and cash equivalents held by Banco do Brasil S.A. amounted to $268.1 million, while BNDES financing reached $670.2 million[72]. Assets and Liabilities - Total assets increased to $11,671.3 million as of September 30, 2024, compared to $10,782.5 million at the end of 2023[5]. - Total liabilities rose to $8,255.7 million as of September 30, 2024, up from $7,743.2 million at the end of 2023[5]. - The company’s total shareholders' equity increased to $3,415.6 million as of September 30, 2024, up from $3,039.3 million at the end of 2023[5]. - The company reported a total loans and financing balance of $2,646.0 million as of September 30, 2024, down from $2,886.4 million at December 31, 2023, indicating a decrease of 8.3%[86]. - Total liabilities increased from $4,223.9 million on December 31, 2023, to $4,453.1 million on September 30, 2024, an increase of 5.4%[136]. Inventory and Receivables - Inventories increased to $3,340.4 million as of September 30, 2024, compared to $2,636.0 million at the end of 2023[3]. - The inventory value as of September 30, 2024, was $3,473.0 million, an increase from $2,763.3 million on December 31, 2023, representing a growth of 25.7%[52]. - The company's trade accounts receivable increased to $266.6 million as of September 30, 2024, compared to $230.8 million at the end of 2023, with overdue amounts rising due to a specific customer default[38]. - The allowance for expected credit losses rose to $11.2 million as of September 30, 2024, from $9.8 million at the end of 2023, reflecting adjustments in credit risk management[39]. Investments and Capital Expenditures - The company invested $169.3 million in property, plant, and equipment during the nine months ended September 30, 2024, compared to $148.8 million in the same period of 2023, marking an increase of about 13.4%[13]. - The company’s financial investments totaled $939.9 million as of September 30, 2024, up from $691.7 million at the end of 2023, with significant increases in structured notes and investment funds[34]. - The company’s investments increased to $46.1 million as of September 30, 2024, from $28.2 million on December 31, 2023, marking a growth of 63.8%[59]. Tax and Provisions - The effective tax rate for the period was -18.5%, compared to -26.3% in the same period of the previous year[101]. - The company recognized a provision of $3.2 million related to a tax assessment notice, down from $4.7 million in 2023[104]. - Total provisions increased from $288.2 million on December 31, 2023, to $313.8 million on September 30, 2024, reflecting a net addition of $25.6 million[111]. Management and Governance - The total remuneration for key management personnel increased to $15.3 million for the nine months ending September 30, 2024, compared to $7.9 million in the same period of 2023, reflecting a 93.7% increase[74]. - The company has significant restrictions on accessing cash balances of EVE Holding, which may impact liquidity for settling obligations[65]. Legal and Contingent Liabilities - The arbitration proceedings with Boeing concluded with a payment of $150 million to Embraer on October 3, 2024[121]. - The company is currently involved in a legal dispute with Conviasa, with the amount in dispute yet to be determined[116]. - The company has contingent liabilities related to labor lawsuits totaling $17.9 million as of September 30, 2024[114]. Market and Backlog - The company has a backlog of performance obligations valued at $22.7 billion as of September 30, 2024, up from $18.7 billion in 2023, with $20.8 billion expected to be satisfied within the next five years[180]. - Revenue from the Commercial Aviation segment was $1,227.5 million, up from $1,095.6 million in 2023, indicating strong demand in this area[193]. - The Defense & Security segment generated $487.6 million in revenue, a significant increase from $313.1 million in the prior year[193].

Group 1 - Sweden has officially committed to acquiring four C-390 Millennium multi-mission aircraft from Embraer, securing production slots during LAAD Defence & Security 2025 [1] - The acquisition is part of Sweden's strategy to enhance its defense capabilities with next-generation NATO interoperable aircraft [2][3] - The C-390 Millennium is recognized for its versatility, reliability, operational efficiency, and cost-effectiveness, with eight countries already acquiring the aircraft [4] Group 2 - The C-390 has demonstrated a high mission capability rate of 93% and mission completion rates above 99% since its operational debut with the Brazilian Air Force in 2019 [5] - The aircraft can carry a payload of 26 tons and operates at a speed of 470 knots, capable of various missions including cargo transport, medical evacuation, and search and rescue [6] - The C-390 is also equipped for air-to-air refueling, showcasing its dual capability as both a tanker and receiver [7] Group 3 - Embraer has delivered over 9,000 aircraft since its founding in 1969 and is a leading manufacturer of commercial jets up to 150 seats [8]

Core Points - Embraer S.A. has filed its Form 20-F for the fiscal year ended December 31, 2024 with the U.S. Securities and Exchange Commission (SEC) [1] - The report is accessible on various official websites including SEC, Brazilian Securities and Exchange Commission (CVM), and Embraer's Investor Relations [1] - Shareholders and holders of Embraer's American Depositary Shares can request a hardcopy of the Annual Report 20-F free of charge from the Investor Relations Department [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Embraer (ERJ) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.Embraer is a member of the Aerospace sector. This group includes 51 individual stocks and currently ...

Embraer S.A. (ERJ) , with rising earnings estimates, robust return on equity (ROE), increasing investments and a solid backlog, offers a great investment opportunity in the Zacks Aerospace Defense industry.Let’s focus on the reasons that make this Zacks Rank #1 (Strong Buy) stock an attractive investment pick at the moment.Growth Projections & Surprise History of EmbraerThe Zacks Consensus Estimate for ERJ’s 2025 earnings per share (EPS) has increased 9.3% to $2.24 in the past 30 days.The consensus estimate ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Core Viewpoint - The article highlights Embraer (ERJ) as a strong value stock, supported by various valuation metrics and a favorable earnings outlook [4][9]. Valuation Metrics - ERJ holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 21.45, which is lower than the industry average of 22.35 [4]. - ERJ's PEG ratio is 0.98, significantly lower than the industry's average PEG of 1.84, suggesting it is undervalued relative to its expected earnings growth [5]. - The P/B ratio for ERJ is 2.89, compared to the industry average of 4.13, indicating a solid valuation [6]. - The P/S ratio for ERJ is 1.42, which is lower than the industry's average P/S of 1.71, further supporting its undervaluation [7]. - ERJ has a P/CF ratio of 16.22, well below the industry average of 38.77, highlighting its strong cash flow outlook [8]. Earnings Outlook - The combination of ERJ's strong valuation metrics and positive earnings outlook positions it as an attractive investment opportunity for value investors [9].

Core Viewpoint - Embraer S.A. has approved a share buyback program for its own issued shares, aimed at acquiring up to 1,066,667 ordinary shares, which is approximately 0.15% of the total outstanding shares, to be executed over a 12-month period starting March 18, 2025 [1][2][3]. Summary by Sections Share Buyback Program Details - The maximum number of shares to be acquired is 1,066,667, representing about 0.15% of the 734,631,601 outstanding common shares as of the announcement date [2]. - The program will be effective from March 18, 2025, and will last until March 17, 2026 [3]. - Acquisitions will occur on the stock exchange at market prices, facilitated by BTG Pactual Serviços Financeiros S/A DTVM [3]. Financial Considerations - The share buyback will utilize available resources from the Company's Investment and Working Capital Reserve, amounting to R$ 154,288,574.28 (approximately 154.29 million) as per the financial statements for the fiscal year ended December 31, 2024 [4]. - The Company believes that the share buyback will not affect its shareholder composition or administrative structure and that it can meet its financial obligations while executing the program [5]. Additional Information - Further details regarding the Share Buyback Program are available on the Company's investor relations website and the CVM website, in accordance with regulatory requirements [6].