Welcome to our dedicated page for Embraer S.A. news (Ticker: ERJ), a resource for investors and traders seeking the latest updates and insights on Embraer S.A. stock.
Embraer S.A. (NYSE: ERJ; B3: EMBR3) is a leading Brazilian multinational aerospace manufacturer with its headquarters in São José dos Campos, São Paulo. Established in 1969, the company specializes in designing, developing, and manufacturing a wide range of aircraft, including commercial, military, executive, and agricultural aircraft, and offers comprehensive aeronautical services.
Business Segments:
- Commercial Aviation: Embraer is renowned for its E-Jets family, which has seen a significant increase in deliveries, particularly the E2 group. In 2023, the company delivered 64 commercial jets, marking a 12% increase from the previous year.
- Defense and Security: Embraer's C-390 Millennium has been a standout, recently winning South Korea's Large Transport Aircraft public tender. The aircraft is recognized for its reliability and multi-mission capability, including cargo transport, medical evacuation, and firefighting.
- Executive Aviation: Embraer offers a range of business jets, including the Phenom 100EX, Phenom 300E, Praetor 500, and Praetor 600. The company is expanding its MRO facilities in the U.S. to support the growing customer base.
- Service and Support: This segment has shown robust growth with a backlog of US$3.1 billion, driven by renewed contracts and innovative solutions like the Pool Program and Embraer Executive Care.
Key Achievements and Projects:
- Embraer delivered 181 aircraft in 2023, up 13% from 2022, with a significant backlog of US$18.7 billion.
- Successful entry of the first NATO-configured KC-390 Millennium for the Portuguese Air Force.
- Expansion of executive jet MRO facilities in Dallas, Cleveland, and Sanford in the U.S.
Financial Performance and Outlook:
Embraer has shown a steady financial performance with continued growth across its various segments. The company reported a 13% YoY increase in its backlog to US$21.1 billion in 1Q24. Despite facing supply chain delays, the company remains committed to stabilizing its production levels and meeting customer demand. With a focus on innovation, customer satisfaction, and long-term relationships, Embraer is poised for sustained growth and strategic expansion in the global aerospace market.
Embraer (NYSE: ERJ) announced its Board of Directors has approved derivative agreements of 'Equity Swap' with Banco Itaú BBA. The agreements, effective December 13, 2024, will involve cash settlement within 12 months and cover up to 16,156,597 common shares. Under the swap terms, Embraer will receive price variations of its traded shares plus dividends while paying CDI plus a fee. The primary purpose is to mitigate share price fluctuations in anticipation of future payments related to the company's long-term incentive plans.
Embraer (NYSE: ERJ) has updated its 2024 guidance, revising key projections. While maintaining Executive Aviation deliveries at 125-135 units and consolidated revenues at $6.0-6.4 billion, the company has adjusted Commercial Aviation deliveries downward to 70-73 units from the previous 72-80 range. However, Embraer has increased its adjusted EBIT margin projection to 9%-10% from 6.5%-7.5%, and raised its free cash flow forecast to $300 million or higher from the previous $220 million target. These projections exclude EVE and are subject to market conditions and risks beyond the company's control.
Embraer (ERJ) reported strong Q3 2024 results with revenues of US$1,692 million, up 32% year-over-year. The company delivered 59 jets in Q3, representing a 37% increase YoY. The firm order backlog reached a 9-year high of US$22.7 billion, up 25% YoY. Management updated 2024 guidance, adjusting Commercial Aviation deliveries to 70-73 aircraft while maintaining Executive Aviation at 125-135 aircraft. The company raised its Adjusted EBIT margin guidance to 9.0-10.0% and Adjusted Free Cash Flow forecast to US$300 million or higher. Fitch Ratings upgraded Embraer to Investment Grade (BBB-) with a stable outlook.
Viasat and Embraer have announced a collaboration to integrate advanced hybrid satellite communications capabilities on the Embraer C-390 Millennium military aircraft. Viasat will provide its Hybrid SATCOM Approach (HSA) based on the dual-band GAT-5530 terminal. The system will enable multi-band, multi-orbit connectivity supporting Viasat's networks, third-party networks, and government networks including WGS. The integration will provide secure and reliable satellite connectivity with automated failover, enhancing operations with resilient broadband SATCOM for tactical missions.
The Czech Ministry of Defense has signed a contract to acquire two Embraer C-390 Millennium multi-mission transport aircraft, making the Czech Republic the fourth NATO member to purchase this model. The aircraft will modernize the Czech Air Force's capabilities, enabling tactical transport, medical evacuation, firefighting, disaster management, humanitarian support, and air-to-air refueling missions. The deal includes a comprehensive training and support package and will boost the local aerospace industry's participation in production. The C-390 features a 26-ton payload capacity, 470-knot top speed, and has demonstrated a 93% mission capability rate with over 15,000 flight hours globally.
Embraer (NYSE: ERJ) reported a 33% year-on-year increase in deliveries for Q3 2024, delivering 57 aircraft compared to 43 in the same period last year. The company's backlog reached a new record of US$22.7 billion, up more than 25% annually and at a 9-year high level. Commercial Aviation delivered 16 jets, Executive Aviation 41 jets, and Defense & Security delivered 2 C-390 Millennium aircraft.
Highlights include:
- First E2 aircraft delivered to LOT Polish Airlines
- Defense & Security backlog soared almost 70%
- Executive jet deliveries increased by over 45% year-on-year
- Commercial Aviation backlog reached US$11.1 billion, almost 30% higher year-on-year
- New firm contract for 9 C-390 aircraft signed with the Netherlands and Austria
- Services & Support backlog increased by more than 25% year-on-year to US$3.5 billion
Embraer (NYSE: ERJ) has announced plans to invest up to $70 million in new maintenance, repair, and overhaul (MRO) facilities for commercial jets at Perot Field Alliance Airport in Fort Worth, Texas. The expansion will be executed in two phases, starting with operations in an existing hangar in Q2 2025, followed by the construction of a new state-of-the-art facility to be completed by 2027. This investment is expected to create approximately 250 new skilled aviation jobs in Texas and increase Embraer's capacity to serve E-Jets customers by 53% in the US.
The new Fort Worth service center will join Embraer's global network of 80 authorized centers and 12 owned service centers. The project has received approval from the Fort Worth City Council and support from local and state officials, highlighting the importance of this expansion for the region's aerospace industry and economic growth.
Embraer's E190F E-Freighter has received full certification from the Federal Aviation Administration (FAA) in September 2024. This certification covers both the passenger-to-freighter conversion and the Cargo Loading System developed by U.S. Cargo Systems. The E-Freighter was previously certified by Brazil's National Civil Aviation Agency (ANAC) in July, with EASA certification expected later this year.
The E190F program, launched in May 2022, aims to fill a gap in the air cargo market and replace older, less efficient models. It's designed to meet the changing demands of e-commerce and modern trade, which require faster deliveries to regional markets. The E-Freighter offers over 40% more volume capacity, three times the range of large cargo turboprops, and up to 30% lower operating costs than larger narrowbodies. The maximum structural payload for the E190F is 13,500 kg when combining capacity under the floor and main deck.
Embraer S.A. (B3: EMBR3, NYSE: ERJ) has announced the conclusion of pending arbitration proceedings with The Boeing Company. As part of a collar agreement between the parties, Boeing will pay Embraer a gross amount of USD 150 million. This material fact was disclosed on September 16, 2024, in compliance with Resolution CVM nº 44/2021, informing shareholders and the market about this significant development. The announcement was made by Antonio Carlos Garcia, Executive Vice President of Financial & Investor Relations at Embraer.
Embraer has announced the sale of up to six A-29 Super Tucano aircraft to the Uruguayan Air Force (FAU). The contract includes one aircraft with a commitment to acquire five additional units, along with mission equipment, integrated logistics services, and a flight simulator. Deliveries are scheduled from 2025. This makes Uruguay the sixth nation in South America to operate the A-29 Super Tucano, joining Brazil, Chile, Colombia, Ecuador, and Paraguay.
The A-29 Super Tucano is a versatile aircraft used for border monitoring, reconnaissance, advanced training, and controlling illegal activities. It has proven its effectiveness in various South American environments, from the Amazon rainforest to mountainous regions. With over 260 orders and 570,000 flight hours, including 60,000 in combat, the A-29 Super Tucano is the global leader in its category.
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