Free cash flow remains highly erratic, evidenced by a 40.8% margin in 2024Q4 swinging to a -46.3% margin in 2024Q1, largely driven by lumpy delivery schedules and working capital fluctuations.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Cash from Operations | 1.05B | 871.2M | 617M | 751.3M | 515.3M | -1.29B | 893.8M | 0 | 2.5B | -309.02M | 3.63B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating CF Margin % | - | 13.62% | 11.71% | 16.55% | 12.27% | -34.21% | 16.36% | - | 29.65% | -1.53% | 15.57% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | 7.22% | 41.2% | -17.88% | 45.8% | 139.94% | -244.35% | - | -100% | 908.09% | -108.51% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Income | 314.92M | 354.6M | 164.3M | -203.5M | -43.5M | -728.3M | -316.5M | -171.2M | 850.7M | 585.43M | 241.6M | 869.63M | 737.41M | 651.06M | 220.25M | 576.82M | 834.36M | 780.94M | 1.02B | 843.66M | 1.04B | 1.01B | 429.72M | 568.54M | 638.16M | 617.4M | 423.93M |
| Depreciation & Amortization | 256.97M | 243.6M | 242.04M | 210.3M | 208.6M | 292.1M | 209.7M | 0 | 1.1B | 1.28B | 1.07B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 2.9M | 0 | 0 | 0 | 0 | 7.59M | 4.8M | 7.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -42.55M | 202.4M | -43.6M | -87.5M | 38.4M | 78.41M | 33.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -32.97M | 61.05M |
| Other Non-Cash Items | -91.87M | -24M | -184.9M | 237.3M | -157.5M | 173.9M | 105M | 171.2M | -500.9M | -1.44B | 2.08B | -869.63M | -737.41M | -651.06M | -220.25M | -576.82M | -834.36M | -780.94M | -1.02B | -843.66M | -1.04B | -1.01B | -429.72M | -568.54M | -638.16M | -584.44M | -484.98M |
| Working Capital Changes | 611.24M | 94.6M | 439.5M | 591.8M | 469.3M | -1.13B | 862.4M | 0 | 1.04B | -734.51M | 225.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Receivables | -14.98M | -248.3M | -2.6M | -13.4M | -94M | 24.69M | 53M | 88.1M | -230.12M | 518.72M | -263.01M | -372.91M | -85.25M | 20.17M | -231.04M | -2.84M | 127.36M | -310.05M | 140.16M | 410.4M | -564.95M | -711.59M | 950.24M | -359.02M | -887.86M | 234.11M | -300.93M |
| Change in Inventory | -386.15M | -370.2M | -287.1M | -294.3M | 474.4M | 27.25M | 147.3M | 0 | 1.34B | -656.66M | 839.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 239.64M | 0 |
| Change in Payables | -111.36M | 204.8M | 50.2M | 257.6M | 4.7M | -314M | -44.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -609.67M | -599.7M | -447.6M | -109.5M | -131.6M | -105.3M | 407.7M | 0 | -3.46B | -3.38B | -5.16B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures | -367.51M | -200.4M | -238.7M | -136.2M | -101.7M | -102.3M | -284.5M | -154.3M | -762.84M | -1.35B | -1.14B | -709.56M | -932.63M | -612.59M | -611.53M | -249.83M | -321.79M | -463.21M | -436.39M | -196.27M | -120.78M | -133.63M | -204.57M | -326.29M | -279.46M | -219.89M | -108.58M |
| CapEx % of Revenue | 5.06% | 3.13% | 4.53% | 3% | 2.42% | 2.71% | 5.21% | 3.04% | 9.06% | 6.68% | 4.89% | 4.51% | 7.02% | 5.32% | 5.77% | 2.79% | 3.36% | 3.71% | 3.98% | 2.41% | 1.37% | 1.46% | 3.02% | 5.06% | 4.91% | 4.14% | 3.27% |
| Acquisitions | 9.01M | -18.3M | -24M | -400K | -1.12M | -5.9M | -2.5M | -2.4M | -1.98M | -9.18M | -4.72M | -1.25M | -31.54M | -39.41M | -99.51M | 0 | 0 | 0 | 0 | -1.75M | 0 | -41.14M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -88.21M | -192.5M | -227.5M | -113.5M | -161.2M | -110.2M | -283.1M | 156.7M | -2.7B | -2.02B | -4.01B | 710.81M | 964.17M | 651.99M | 711.04M | 249.83M | 321.79M | 469.71M | 436.39M | 198.01M | 120.78M | 174.77M | 204.57M | 326.29M | 279.46M | 219.89M | 108.58M |
| Cash from Financing | -204.88M | -335.7M | -348.7M | -669.2M | -441.04M | 1.01B | -257M | -503.4M | 1.1B | 14.65M | 3.89B | 833.62M | 410.26M | 788.71M | 176.34M | -1.34B | -41.64M | -619.91M | 286.12M | -854.39M | 58.14M | 280.79M | 1.28B | -1.02B | 248.62M | -169.11M | -10.18M |
| Debt Issued (Net) | -376.55M | -398.9M | -327.36M | -828.3M | -428.1M | 1.01B | -257.2M | -472.3M | 1.31B | 167.96M | 4.05B | 1.03B | 512.77M | 872.75M | 511.83M | -1.07B | -41.64M | 228.25M | 621.65M | -524.28M | 494.09M | 767.25M | 1.48B | -627.3M | 597.09M | -374.25M | 104.69M |
| Equity Issued (Net) | 186.87M | 65.03M | 9.5M | 0 | -2.5M | 0 | 0 | 0 | -48.4M | -60M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -360.71M | 5.88M | 11.06M | 28.24M | 8.67M | 12.51M | 3.05M | 3.42M | 453.26M | -22.45M |
| Dividends Paid | -8.98M | 0 | -13.4M | 0 | 0 | 0 | -2M | 0 | -173.04M | -99.8M | -182.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -341.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -14.7M | 0 | 0 | 0 | -2.5M | 0 | 0 | 0 | -48.4M | -60M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -12.38M | -19.05M | -27.01M | 159.1M | -10.39M | 400K | 2.2M | -31.1M | 19.06M | 6.49M | 23.48M | -198.09M | -102.51M | -84.04M | -335.49M | -269.87M | 0 | -487.45M | -341.42M | 0 | -464.19M | -495.13M | -213.16M | -395.83M | -351.89M | -248.12M | -92.43M |
| Net Change in Cash | 220.04M | -63.3M | -189.3M | -23M | -44.5M | -424.6M | 1.03B | 0 | 157.53M | -4.41B | 3.91B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 702.54M | 405M | 186.2M | 495.3M | 247.1M | -1.51B | 326M | 0 | 1.73B | -1.66B | 2.49B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| FCF Margin % | 9.67% | 6.33% | 3.53% | 10.91% | 5.88% | -40.14% | 5.97% | - | 20.59% | -8.21% | 10.68% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| FCF Growth % | 532.35% | 117.51% | -62.41% | 100.45% | 116.32% | -564.39% | - | -100% | 204.4% | -166.68% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| FCF per Share | 3.83 | 2.21 | 1.01 | 2.70 | 1.35 | -8.23 | 1.77 | - | 9.44 | -9.01 | 13.59 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| FCF Conversion (FCF/Net Income) | 2.23x | 2.47x | 3.76x | -4.05x | -11.53x | 1.76x | -2.77x | - | 2.86x | -0.53x | 13.34x | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 616.6M | 570.34M | 600.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Supply chain delivery bottlenecks
As reported in financial statements, Embraer's operating cash flow to net income ratio exhibits extreme volatility, swinging from a 22.96x peak in 2024Q4 to a -10.72x trough in 2024Q1, which suggests that headline earnings are frequently decoupled from the underlying cash generation of the business.
The significant divergence between net income and operating cash flow appears to be driven by the timing of aircraft deliveries and the associated milestone payments. Investors should monitor this relationship closely, as the reliance on year-end delivery surges may obscure the true cash-generating capacity of the core manufacturing operations.
Based on quarterly data, Embraer's free cash flow trajectory remains highly erratic, with margins oscillating between a 40.8% peak in 2024Q4 and a -46.3% low in 2024Q1, indicating that the company's cash flow profile is heavily dependent on the timing of large-scale commercial and defense contract completions.
The frequent negative free cash flow quarters suggest that the company is consistently funding its working capital requirements through periods of lower delivery volume. This pattern warrants further investigation into whether the current cash flow volatility is a structural feature of the aerospace production cycle or a result of temporary supply chain constraints.
According to recent SEC filings, Embraer's capital expenditure as a percentage of revenue has remained relatively disciplined, fluctuating between 1.3% and 7.9% over the last ten quarters, which suggests that management is maintaining a measured approach to reinvestment despite the ongoing development of new aerospace platforms.
The moderate capital intensity appears to indicate that the company is not currently engaged in an overly aggressive expansion phase that would threaten its liquidity. However, the potential capital requirements for the Eve subsidiary may necessitate a shift in this spending profile, which investors should monitor for signs of margin compression.
As indicated by the quarterly cash flow data, working capital changes have been a primary driver of cash flow variance, with a massive $884.5 million inflow in 2024Q4 followed by significant outflows in subsequent quarters, suggesting that inventory management remains a critical challenge for the firm.
The recurring negative working capital changes in several quarters appear to reflect the accumulation of 'glider' aircraft due to engine supply chain delays. This trapped capital suggests that the company's cash conversion cycle is highly sensitive to third-party component availability, which may continue to pressure short-term liquidity.
Quick answers to the most common questions about buying ERJ stock.
Embraer S.A. (ERJ) generated $871.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Embraer S.A. (ERJ) generated $405.0M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Embraer S.A. (ERJ) spent $200.4M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.