Embraer increased deliveries 88% quarter on quarter in 2Q24 and backlog totaled US$21.1bn - a 7-year high
Embraer (NYSE: ERJ) reported strong performance in Q2 2024, with total deliveries increasing 88% quarter-on-quarter to 47 jets. The company's backlog reached a 7-year high of $21.1 billion, up more than 20% year-over-year. Commercial Aviation led growth with a 170% increase in deliveries compared to Q1. Executive Jets also showed solid performance, delivering 27 aircraft.
Key highlights include:
- Commercial Aviation backlog of $11.3 billion, boosted by a 20 E2 jet order from Mexicana de Aviación
- Delivery of the 1,800th E-Jet
- Executive Jets maintaining a positive book-to-bill ratio
- Delivery of the 2nd C-390 Millennium to the Portuguese Air Force
Embraer's 2024 guidance remains at 197-215 total deliveries across all segments.
- Total deliveries increased 88% quarter-on-quarter to 47 jets in Q2 2024
- Company-wide backlog reached $21.1 billion, up more than 20% year-over-year
- Commercial Aviation deliveries grew by 170% compared to Q1 2024
- Secured a 20 E2 jet order from Mexicana de Aviación
- Executive Jets maintained a positive book-to-bill ratio
- Delivered the 1,800th E-Jet, a significant milestone for the company
- Defense & Security backlog decreased by 10% quarter-on-quarter to $2.1 billion
Insights
Embraer's remarkable increase in deliveries for Q2 2024 signals a strong rebound in both its commercial and executive jet segments. The company delivered 47 jets this quarter, an increase of
The backlog surge to
Short-term, investors might see positive market reactions due to heightened delivery numbers and backlog figures. However, it's essential to consider potential supply chain disruptions and geopolitical risks that could affect future production and profitability. Long-term, the backlog ensures a steady revenue stream, yet competitiveness in the aerospace sector means continuous innovation and market adaptation are important for sustained growth.
Embraer's performance in Q2 2024 demonstrates not only operational excellence but also strategic market positioning. The substantial growth in commercial aviation deliveries and the backlog signals strong demand recovery post-pandemic and effective targeting of key markets. With the firm order from Mexicana de Aviación and the delivery to Scoot, Embraer is strategically capturing opportunities in both established and emerging markets.
The defense segment's backlog decline by
In executive aviation, maintaining a high book-to-bill ratio indicates sustained demand and effective sales strategies. This segment's marginal backlog increase suggests stability, though investors should watch for growth opportunities outside traditional markets to ensure expanded market presence.
For retail investors, understanding these dynamics can highlight Embraer's strong positioning and potential growth areas, although vigilance on global market conditions and competitive actions remains essential.
The achievements in Q2 2024 reflect Embraer's resilient adaptability within the aerospace industry. The significant increase in both commercial and executive jet deliveries illustrates operational efficiency and successful market penetration. The landmark backlog of
The E2 jet's order by Mexicana de Aviación is particularly telling. This move not only strengthens Embraer's presence in the Latin American market but also reinforces its competitive stance against industry giants like Boeing and Airbus in the regional jet segment. Deliveries to Scoot and Royal Jordanian Airlines further emphasize Embraer's global reach and market agility.
On the defense front, while the slight decline in backlog might concern some investors, the delivery of the C-390 Millennium to Portugal and potential future European orders represent significant growth avenues. This segment's performance should be monitored closely as it can substantially impact Embraer's overall market position.
For retail investors, these developments suggest a balanced mix of steady revenue streams and potential growth areas, positioning Embraer as a noteworthy contender in the aerospace industry.
- Commercial deliveries soared circa
170% sequentially while Executive Jets grew50% US company wide backlog up more than$21.1 b n20% annually- 20 E2 jets order from Mexicana de Aviación
- 2nd C-390 Millennium aircraft delivered to
Portugal
SÃO PAULO, July 18, 2024 /PRNewswire/ -- Embraer (NYSE: ERJ; B3: EMBR3) delivered 47 jets in 2Q24, an
Deliveries by Segment | 2Q24 | 1Q24 | 2Q23 | 1H24 | 1H23 | 2024 Guidance |
Executive Aviation | 27 | 18 | 30 | 45 | 38 | 125-135 |
Phenom 100 | 2 | 1 | 1 | 3 | 3 | |
Phenom 300 | 18 | 10 | 18 | 28 | 22 | |
Light Jets | 20 | 11 | 19 | 31 | 25 | |
Praetor 500 | 3 | 3 | 6 | 6 | 6 | |
Praetor 600 | 4 | 4 | 5 | 8 | 7 | |
Medium Jets | 7 | 7 | 11 | 14 | 13 | |
Commercial Aviation | 19 | 7 | 17 | 26 | 24 | 72-80 |
E195-E2 | 7 | 4 | 7 | 11 | 12 | |
E190-E2 | 4 | - | - | 4 | - | |
E175 | 8 | 3 | 10 | 11 | 12 | |
Total | 46 | 25 | 47 | 71 | 62 | 197-215* |
Defense & Security | 1 | - | 1 | 1 | 1 | |
C-390 Millennium | 1 | - | 1 | 1 | 1 |
The company wide backlog reached
Backlog by Segment - US$bn | 2Q24 | 1Q24 | qoq | 2Q23 | yoy |
Commercial Aviation | 11.3 | 11.1 | 2 % | 8.0 | 40 % |
Executive Jets | 4.6 | 4.6 | 1 % | 4.3 | 8 % |
Services & Support | 3.1 | 3.1 | 0 % | 2.7 | 16 % |
Defense & Security | 2.1 | 2.4 | -10 % | 2.3 | -5 % |
Total | 21.1 | 21.1 | 0 % | 17.3 | 22 % |
In Commercial Aviation, the backlog reached
2Q24 Backlog - Commercial Aviation | |||
Aircraft Type | Firm Orders | Deliveries | Firm Order Backlog |
E195-E2 | 282 | 100 | 182 |
E190-E2 | 44 | 23 | 21 |
E175 | 943 | 764 | 179 |
Total | 1,269 | 887 | 382 |
Executive Jets continued to seize great sales momentum in both fleet and retail markets, demonstrating solid delivery performance and maintaining a positive book-to-bill ratio. The backlog ended the period marginally up at
The Services & Support unit continues to be one of the main drivers of Embraer's growth through a combination of operational excellence, customer experience and innovative solutions. Its backlog ended 2Q24 roughly unchanged at
In Defense & Security, the highlight was the delivery of the 2nd C-390 Millennium to the Portuguese Air Force (FAP), in a ceremony held in Gavião Peixoto (SP),
Commercial Aviation aircraft backlog:
Customer (Country) | Firm Orders | Delivered | Firm Order Backlog |
Embraer 195-E2 | 282 | 100 | 182 |
Azul ( | 51 | - | 51 |
Porter ( | 75 | 36 | 39 |
Aercap ( | 45 | 19 | 26 |
Azorra ( | 23 | 5 | 18 |
Mexicana ( | 10 | - | 10 |
Aircastle ( | 23 | 14 | 9 |
Air Peace ( | 13 | 5 | 8 |
Binter Canarias ( | 16 | 10 | 6 |
Salam Air ( | 6 | - | 6 |
Luxair (Luxembourg) | 4 | - | 4 |
ICBC ( | 10 | 7 | 3 |
Royal Jordanian (Jordanian) | 2 | - | 2 |
Helvetic ( | 4 | 4 | - |
Customer (Country) | Firm Orders | Delivered | Firm Order Backlog |
Embraer 190-E2 | 44 | 23 | 21 |
Mexicana ( | 10 | - | 10 |
Azorra ( | 12 | 4 | 8 |
Aircastle ( | 2 | - | 2 |
Air | 2 | 1 | 1 |
Aercap ( | 5 | 5 | - |
Helvetic ( | 8 | 8 | - |
Wideroe ( | 3 | 3 | - |
Placar Linhas Aéreas ( | 1 | 1 | - |
Undisclosed | 1 | 1 | - |
Customer (Country) | Firm Orders | Delivered | Firm Order Backlog |
EMBRAER 175 | 943 | 764 | 179 |
American Airlines ( | 204 | 108 | 96 |
Republic Airlines ( | 187 | 141 | 46 |
Skywest ( | 228 | 207 | 21 |
Horizon Air / | 50 | 44 | 6 |
Air Peace ( | 5 | - | 5 |
Undisclosed | 4 | - | 4 |
Overland Airways ( | 3 | 2 | 1 |
Air Canada ( | 15 | 15 | - |
Air Lease ( | 8 | 8 | - |
Alitalia ( | 2 | 2 | - |
Belavia ( | 1 | 1 | - |
CIT ( | 4 | 4 | - |
ECC Leasing ( | 1 | 1 | - |
Flybe ( | 11 | 11 | - |
Fuji Dream ( | 2 | 2 | - |
GECAS ( | 5 | 5 | - |
KLM ( | 17 | 17 | - |
LOT Polish ( | 12 | 12 | - |
Mauritania Airlines ( | 2 | 2 | - |
Mesa ( | 7 | 7 | - |
NAC / Aldus ( | 2 | 2 | - |
NAC / Jetscape ( | 4 | 4 | - |
Northwest ( | 36 | 36 | - |
Oman Air ( | 5 | 5 | - |
Royal Jordanian ( | 2 | 2 | - |
Suzuyo ( | 11 | 11 | - |
TRIP ( | 5 | 5 | - |
United Airlines ( | 110 | 110 | - |
* Aircraft delivered by ECC Leasing: one to Air Caraibes |
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SOURCE Embraer S.A.
FAQ
How many jets did Embraer (ERJ) deliver in Q2 2024?
What was Embraer's (ERJ) backlog value at the end of Q2 2024?
How many E2 jets did Mexicana de Aviación order from Embraer (ERJ) in Q2 2024?
What was the percentage increase in Embraer's (ERJ) Commercial Aviation deliveries in Q2 2024?
How many C-390 Millennium aircraft has Embraer (ERJ) delivered to Portugal as of Q2 2024?
