Embraer Secures Investment Grade from Moody’s, Strengthening Financial Position

Moody’s, one of the leading credit rating agencies, upgraded Embraer‘s credit rating from Ba1 to Baa3, placing the company in the select Investment Grade group.

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This upgrade attributed by Moody’s marks the third Investment Grade recognition for Embraer in 2024, following the ratings by S&P Global Ratings and Fitch Ratings, reported Aeroin.

Moody’s justified the rating by citing the continuous improvement of credit indicators, Embraer’s solid financial policy, and liquidity. Other highlighted factors include the gradual recovery of deliveries, an expanding backlog (order book), and consistent operational performance.

Debt reduction

Additionally, the company’s debt reduction, combined with strong free cash flow generation, further strengthened its financial position.

Antonio Carlos García, CFO of Embraer, emphasized the crucial role of efficiency and financial discipline in the company’s strategy. “Our focus on efficiency and financial discipline are important differentiators, alongside our modern and competitive portfolio. These attributes ensure the success of our strategy and sustainable business growth, as well as the strong commitment of our employees,” stated García.

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Consolidated position

With its consolidated position in the Commercial, Executive, Defense and Security, and Services and Support segments, Embraer remains Brazil’s largest high-tech exporter.

In the third quarter of 2024, the company reported an order backlog that reached $22.7 billion, the highest level in nine years. The year-end projection includes revenues between $6.0 billion and $6.4 billion, with an adjusted EBIT margin between 9.0% and 10.0%.