Oct. 14 at 3:46 PM
Moody’s Ratings affirmed Embraer S.A.’s long-term issuer rating at Baa3 and revised the outlook to positive from stable, citing continued improvement in credit metrics, liquidity, and strong operating results.
The agency noted that Embraer’s gross leverage (Moody’s-adjusted) fell to 2.5x in 2024 from 4.7x in December 2023, while free cash flow surged from
$142 million to
$505 million over the same period.
For the 12 months ending June 2025, Embraer generated
$479 million in positive free cash flow, with gross leverage of 2.6x and net leverage of 1.2x. Moody’s expects leverage to fall below 2x within the next 12–18 months and forecasts a transition to a net cash position.
The positive outlook reflects Moody’s expectation that Embraer is well positioned to benefit from favorable aerospace and defense market conditions, supported by shorter delivery times and a strong product lineup, including the E-175 jet, which dominates its market segment.
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