By Chinelo Obogo
From financial experts’ lenses, 2024 was a year of mixed fortunes for the global aircraft manufacturing industry, with Airbus and Embraer showing strong financial performances, while Boeing faced many setbacks due to labour strikes and operational challenges.
Daily Sun analysed the 2024 performances of these three companies, which are, Airbus, the European leading aircraft manufacturer; Boeing its US counterpart and Embraer, the emerging star from Brazil, to provide a comparative analysis of their financial results and future outlooks.
In 2024, Embraer led in revenue growth, achieving a 21 per cent year-over-year (YoY) increase, with revenues totaling $6.395 billion. Airbus followed with €69.2 billion in annual revenue, marking a 6 per cent YoY growth, driven by higher aircraft deliveries and strong demand for its products. Boeing, on the other hand, suffered a net loss of $11.8 billion, with Q4 revenues plunging 31 per cent YoY. Both Airbus and Embraer maintained profitability, reporting adjusted EBIT margins of 7.7 per cent and 11.1 per cent, respectively. Boeing, however, faced massive losses, primarily due to a 53-day labor strike and operational disruptions.
Airbus reported the largest order backlog at €629 billion, followed by Boeing at $521 billion and Embraer at $26.3 billion. Embraer however, demonstrated the most significant backlog growth, with a 40 per cent YoY increase. In cash flow performance, Airbus generated €4.5 billion in free cash flow, while Embraer achieved $675.6 million. Boeing however, reported negative free cash flow of $3.5 billion in Q4.
In terms of outlook for 2025, Embraer and Airbus offered optimistic 2025 guidance, targeting revenue growth and increased aircraft deliveries. Embraer aims for revenues between $7.0 billion and $7.5 billion, with adjusted EBIT margins of 7.5 per cent to 8.3 per cent. Airbus plans to deliver around 820 aircraft, projecting €7.0 billion in adjusted EBIT. For Boeing, its outlook remains uncertain as the company faces ongoing challenges in its commercial and defense segments.
Embraer delivered 206 aircraft in 2024, including 73 commercial and 130 executive jets. Its defense segment saw an impressive 40 per cent YoY revenue growth, while Airbus delivered 766 commercial aircraft, including 602 A320 family jets and 57 A350s. The company also proposed dividends of €2.00 per share and an additional €1.00 special dividend, reflecting its solid financial position. Boeing delivered only 348 aircraft in 2024, compared to Airbus’s 766. Despite a substantial backlog of $521 billion, Boeing faced financial losses and production disruptions. However, production has resumed across its 737, 767, and 777/777X programmes.