Embraer reached an all-time US$ 26.3 billion backlog record in the last quarter of 2024

Rhea-AI Summary

Embraer (ERJ) achieved a record-breaking backlog of US$26.3 billion in Q4 2024, marking a 40%+ year-on-year increase and 16% quarter-on-quarter growth. The company delivered 75 aircraft in Q4 2024 and 206 aircraft throughout 2024, representing a 14% increase from 2023.

Key segment performances include:

• Commercial Aviation: US$10.2 billion backlog (15% YoY growth) with 73 deliveries in 2024
• Executive Jets: Record US$7.4 billion backlog (70% YoY increase) with 130 deliveries
• Services & Support: All-time high US$4.6 billion backlog (50%+ YoY growth)
• Defense & Security: US$4.2 billion backlog (67% YoY increase)

Notable achievements include a marquee deal with Flexjet for 182 firm orders and industry-leading book-to-bill ratios across segments, with the company achieving an overall 2.2 ratio based on financial values.

Positive

• Record-breaking total backlog of US$26.3 billion, up 40%+ YoY
• Executive Jets secured major Flexjet deal for 182 firm orders
• 14% increase in total aircraft deliveries (206 vs 181 in 2023)
• Strong book-to-bill ratio of 2.2 across all segments
• Services & Support backlog grew 50% YoY to US$4.6 billion
• Defense & Security backlog increased 67% YoY to US$4.2 billion

Negative

• Commercial Aviation backlog declined 8% quarter-on-quarter
• Phenom 100 deliveries decreased year-over-year (10 vs 11)

Insights

Aerospace Industry Financial Analyst

The exceptional $26.3 billion backlog marks a pivotal moment for Embraer, showcasing unprecedented market penetration across all segments. The 41% YoY growth significantly outpaces industry averages, strengthening the company's competitive position against larger rivals.

Key strategic wins include:

• The transformative Flexjet deal comprising 182 firm orders, which not only secures long-term revenue streams but also validates Embraer's product positioning in the premium executive jet market
• Commercial Aviation's $10.2 billion backlog and 1.6 book-to-bill ratio demonstrates strong market acceptance of the E2 family, particularly in the capacity-optimized 100-150 seat segment
• Defense & Security's 67% YoY backlog growth to $4.2 billion reflects increasing global adoption of the C-390 Millennium, with recent wins in European NATO countries strengthening its international credentials

The successful production leveling initiative, reducing Q4 delivery concentration from 45% to 34%, indicates improving operational efficiency and supply chain management. This optimization should enhance working capital efficiency and reduce seasonal earnings volatility.

The geographical diversification of orders across North America, Europe and emerging markets provides natural hedging against regional market fluctuations while opening new growth avenues. The services backlog expansion to $4.6 billion adds predictable, high-margin revenue streams that will support long-term profitability.

Aviation Market Strategist

The unprecedented backlog composition reflects Embraer's successful multi-market strategy and product portfolio optimization. The Executive Aviation segment's record $7.4 billion backlog, driven by the Flexjet mega-order, demonstrates the company's ability to secure transformative deals in the high-margin business jet market. The 70% YoY growth in this segment positions Embraer as a dominant player in the light and medium-jet categories.

Commercial Aviation's resilient performance, with a $10.2 billion backlog despite heightened quarterly deliveries, validates the E2 family's market fit. The order book diversification across legacy carriers, regional airlines and new entrants reduces customer concentration risk while expanding market reach.

The Services & Support segment's 50% YoY backlog growth to $4.6 billion is particularly significant as it provides recurring revenue streams with higher margins than aircraft sales. The expansion of support programs with major operators enhances customer loyalty and creates barriers to entry for competitors.

The Defense & Security segment's breakthrough in NATO markets with the C-390 Millennium positions Embraer as a credible alternative to established military transport manufacturers, potentially opening a new growth phase in this high-value segment.

• The company wide backlog value expanded 40%+ year-on-year in 4Q24
• Commercial Aviation finished 2024 with a US$10.2 billion backlog (15% year-on-year) and a strong 1.6x book-to-bill ratio
• Executive Jets recorded a new US$7.4 billion all-time high backlog (65%+ quarter-on-quarter) supported by a marquee deal with Flexjet
• Services & Support posted a new all-time high US$4.6 billion backlog during the quarter, up 50%+ compared to 4Q23
• Defense & Security registered a 67% year-on-year backlog increase to US$4.2 billion, with a record share from global clients

SÃO PAULO, Feb. 6, 2025 /PRNewswire/ -- Embraer (NYSE: ERJ / B3: EMBR3), one of the global leaders in the aerospace industry, reports that its organization-wide backlog reached US$26.3 billion in 4Q24. The value is the largest ever recorded by the company in its history, and more than 40% higher year-on-year and 16% higher quarter-on-quarter. Embraer finished 2024 with an industry leading 2.2 book-to-bill ratio based on financial values¹.

Backlog by Segment - US$bn	4Q24	3Q24	qoq	4Q23	yoy
Commercial Aviation	10.2	11.1	-8 %	8.8	15 %
Executive Jets	7.4	4.4	67 %	4.3	70 %
Services & Support	4.6	3.5	31 %	3.1	50 %
Defense & Security	4.2	3.6	15 %	2.5	67 %
Total	26.3	22.7	16 %	18.7	41 %

Embraer delivered 75 aircraft in the last quarter of the year, 27% more than the 59 aircraft in the previous quarter (3Q24), and equal to the number in the same period a year ago (4Q23). Meanwhile, the company delivered a total of 206 aircraft in 2024 – a 14% increase compared to the 181 aircraft in 2023.

Deliveries by Segment	4Q24	3Q24	4Q23	2024 FY	2023 FY	2024 Guidance
Executive Aviation	44	41	49	130	115	125-135
Phenom 100	3	4	6	10	11
Phenom 300	19	18	24	65	63
Light Jets	22	22	30	75	74
Praetor 500	13	9	10	28	20
Praetor 600	9	10	9	27	21
Medium Jets	22	19	19	55	41
Commercial Aviation	31	16	25	73	64	70-73
E195-E2	18	10	17	39	38
E190-E2	2	2	1	8	1
E175	11	4	7	26	25
Total Commercial & Executive	75	57	74	203	179	195-208*
Defense & Security	-	2	1	3	2
C-390 Millennium	-	2	1	3	2
A-29 Super Tucano	-	-	-	-	-
*Excludes C-390 Millennium and A-29 Super Tucano deliveries

In Commercial Aviation, the backlog reached US$10.2 billion in 4Q24 – 15% higher year-on-year but 8% lower quarter-on-quarter – because of the seasonally strong period of aircraft deliveries. The business unit delivered 31 new aircraft in the last quarter of 2024 and 73 in the full year (at the ceiling of revised estimates of 70-73 for the year and within the original estimates of 72-80). Consequently, Commercial Aviation finished 2024 with a strong 1.6 book-to-bill ratio based on financial values².

Luxair formalized an order for 2 E195-E2s, which will complement the airline's fleet of larger aircraft already requested. By exercising 2 secured options on its 2023 firm order for 4 aircraft, Luxair now has a total of 6 E195-E2 jets requested. Thus, Embraer currently has 179 firm orders for the E2 Jets family and 164 for the E1-175 Jet aircraft.

Finally, it is important to highlight the company's production leveling initiative, which the company wants to make progress in 2025.

4Q24 Backlog - Commercial Aviation
Aircraft Type	Firm Orders	Deliveries	Firm Order Backlog
E175	943	779	164
E190-E2	52	27	25
E195-E2	282	128	154
Total	1,277	934	343

 

Customer (Country)	Firm Orders	Delivered	Firm Order Backlog
EMBRAER 175	943	779	164
American Airlines (USA)	204	112	92
Republic Airlines (USA)	187	146	41
Skywest (USA)	228	212	16
Horizon Air / Alaska (USA)	50	44	6
Air Peace (Nigeria)	5	-	5
Undisclosed	4	1	3
Overland Airways (Nigeria)	3	2	1
Air Canada (Canada)	15	15	-
Air Lease (USA)	8	8	-
Alitalia (Italy)	2	2	-
Belavia (Belarus)	1	1	-
CIT (USA)	4	4	-
ECC Leasing (Ireland)*	1	1	-
Flybe (UK)	11	11	-
Fuji Dream (Japan)	2	2	-
GECAS (USA)	5	5	-
KLM (The Netherlands)	17	17	-
LOT Polish (Poland)	12	12	-
Mauritania Airlines (Mauritania)	2	2	-
Mesa (USA)	7	7	-
NAC / Aldus (Ireland)	2	2	-
NAC / Jetscape (USA)	4	4	-
Northwest (USA)	36	36	-
Oman Air (Oman)	5	5	-
Royal Jordanian (Jordan)	2	2	-
Suzuyo (Japan)	11	11	-
TRIP (Brazil)	5	5	-
United Airlines (USA)	110	110	-
* Aircraft delivered by ECC Leasing: one to Air Caraibes

 

Customer (Country)	Firm Orders	Delivered	Firm Order Backlog
Embraer 190-E2	52	27	25
Mexicana (Mexico)	10	-	10
Azorra (USA)	16	8	8
Virgin Australia (Australia)	4	-	4
Aircastle (USA)	2	-	2
Air Kiribati (Kiribati)	2	1	1
Aercap (Ireland)	5	5	-
Helvetic (Switzerland)	8	8	-
Wideroe (Norway)	3	3	-
Placar Linhas Aéreas (Brazil)	1	1	-
Undisclosed	1	1	-

 

Customer (Country)	Firm Orders	Delivered	Firm Order Backlog
Embraer 195-E2	282	128	154
Azul (Brazil)	51	-	51
Porter (Canada)	75	43	32
Aercap (Ireland)	43	27	16
Azorra (USA)	23	9	14
Mexicana (Mexico)	10	-	10
Air Peace (Nigeria)	13	5	8
Aircastle (USA)	23	16	7
Salam Air (Oman)	6	-	6
Luxair (Luxembourg)	6	-	6
Royal Jordanian (Jordanian)	2	-	2
Binter Canarias (Spain)	16	15	1
ICBC (China)	10	9	1
Helvetic (Switzerland)	4	4	-

 

In Executive Aviation, the backlog soared to US$ 7.4 billion in 4Q24 – 70% higher year-on-year and 67% higher quarter-on-quarter – and a new all-time high for the business unit supported by a marquee contract with Flexjet. The deal includes 182 firm orders for Phenom 300E, Praetor 500, and Praetor 600 aircraft with deliveries from 2026 to 2030, and up to 30 additional Praetor options.

 The division delivered 44 jets in the last quarter of 2024, and a total of 130 for the year (at the midpoint of the original guidance for 2024, and a 14-year high). Consequently, Executive Aviation finished 2024 with an industry leading 2.7 book-to-bill ratio based on financial values³.

The mid and super-mid-sized Praetor 500 and Praetor 600 represented half of the segment deliveries (22 jets) during the quarter, supported by the solid thrust forward of the aircraft family. Meanwhile, the Phenom 300, the best-selling aircraft in its category for 12 consecutive years worldwide, was the top performer (19 jets) over the period.

It is important to highlight the progress observed in the company's production leveling initiative in 2024. Management managed to reduce how deliveries were skewed towards Q4 and better distribute them throughout the quarters. In 2024, Q4 deliveries accounted for 34% of the yearly total while that number was 45% on average for the previous five years.  The company achieved significant results during the year and expects additional gains supported by supply chain improvements in the near future.  

In Services & Support, the backlog rose to US$4.6 billion in 4Q24 – 50% higher year-on-year and more than 30% higher quarter-on-quarter – propped by long-term contracts with Flexjet in Executive Aviation, and Air Serbia, LOT Polish Airlines and CommuteAir in Commercial Aviation. These contracts for the latter group are for the Pool and Part Exchange Plus Programs whose objectives are to support these companies' fleet of E-Jets with a wide range of repair components, services and customized inventory. Additionally, contributions from spares/exchange parts, technical publications, technical services, training, and modifications have played a key role in this result. Services & Support finished 2024 with an industry leading 1.9 book-to-bill ratio based on financial values⁴.

In Defense & Security, the backlog climbed to US$4.2 billion in 4Q24 – 67% higher year-on-year and 15% higher quarter-on-quarter – supported by new orders for the C-390 Millenium (4) and the A-29 Super Tucano (10). Embraer currently has 32 firm orders for our military transport and 17 for our light attack aircraft. Meanwhile, Defense & Security continued to ramp up production with the delivery of 3 new C-390 Millenium jets in 2024 versus 2 in 2023. Consequently, the business unit finished 2024 with an industry leading 3.3 book-to-bill ratio based on financial values⁵.

4Q24 Backlog - Defense & Security
Aircraft Type	Firm Orders	Deliveries	Firm Order Backlog
C-390 Milllennium	42	10	32
A-29 Super Tucano	17	-	17

The division signed firm contracts in the last quarter of 2024 with the Czech Ministry of Defense and an undisclosed client for 2 C-390 Millenium aircraft each – these aircraft entered the backlog. Moreover, this military transport plane was selected by Slovakia (3) and Sweden (undisclosed) during the period - no contracts were signed yet and thus not recorded in the backlog.

The business unit also signed a firm contract with an undisclosed client for 6 A-29 Super Tucano aircraft in the last quarter of 2024, and another with an undisclosed client from Africa for 4 additional planes. Meanwhile, the Portuguese Air Force became the launch customer for the NATO version of the light attack aircraft (12) - but its contract was not effective at the end of 2024 - and the Uruguayan Air Force firmed their options (5) in early 2025. Therefore, these 17 aircraft were not recorded in the backlog yet.

Customer (Country)	Firm Orders	Delivered	Firm Order Backlog
C-390 Millennium	42	10	32
Brazilian Air Force  (Brazil)	19	7	12
Royal Netherlands Air Force (Netherlands)	5	-	5
Austrian Air Force (Austria)	4	-	4
Portuguese Air Force (Portugal)	5	2	3
Republic of Korea Air Force (South Korea)	3	-	3
Czech Air Force (Czech Republic)	2	-	2
Undisclosed	2	-	2
Hungarian Air Force (Hungary)	2	1	1

 

Customer (Country)	Firm Orders	Delivered	Firm Order Backlog
A-29 Super Tucano	17	-	17
Paraguayan Air Force (Paraguay)	6	-	6
Undisclosed	6	-	6
Undisclosed (Africa)	4	-	4
Uruguayan Air Force	1	-	1

About Embraer 

A global aerospace company headquartered in Brazil, Embraer has businesses in Commercial and Executive aviation, Defense and Security, and Agricultural Aviation. The company designs, develops, manufactures, and markets aircraft and systems, providing Services and Support to customers after-sales.

Since it was founded in 1969, Embraer has delivered more than 9,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 150 million passengers a year.

Embraer is the leading manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service, and parts distribution centers, among other activities, across the Americas, Africa, Asia, and Europe.

¹ Calculated as the (delta in Embraer backlog plus Embraer revenues) divided by Embraer revenues.

² Calculated as the (delta in Com. Av. backlog plus Com. Av. revenues) divided by Com. Av. revenues.

³ Calculated as the (delta in Exec. Av. backlog plus Exec. Av. revenues) divided by Exec. Av. revenues.

⁴ Calculated as the (delta in S&S backlog plus S&S revenues) divided by S&S revenues.

⁵ Calculated as the (delta in D&S backlog plus D&S revenues) divided by D&S revenues.

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SOURCE Embraer S.A.

FAQ

What is Embraer's (ERJ) total backlog value as of Q4 2024?

Embraer's total backlog reached US$26.3 billion in Q4 2024, representing a record high and a 40%+ increase year-over-year.

How many aircraft did Embraer (ERJ) deliver in 2024?

Embraer delivered 206 aircraft in 2024, a 14% increase compared to 181 aircraft in 2023.

What is the size of the Flexjet deal with Embraer (ERJ)?

The Flexjet deal includes 182 firm orders for Phenom 300E, Praetor 500, and Praetor 600 aircraft with deliveries from 2026 to 2030, plus up to 30 additional Praetor options.

How many C-390 Millennium aircraft does Embraer (ERJ) have in its backlog?

Embraer has 32 firm orders for the C-390 Millennium in its backlog as of Q4 2024.

What was Embraer's (ERJ) Commercial Aviation performance in 2024?

Commercial Aviation delivered 73 aircraft in 2024, reaching the ceiling of revised estimates (70-73), with a backlog of US$10.2 billion and a 1.6 book-to-bill ratio.