Embraer recorded a 33% year-on-year increase in deliveries and reached a new US$ 22.7 billion backlog record

Rhea-AI Summary

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

Positive

• 33% year-on-year increase in aircraft deliveries (57 vs 43)
• Record backlog of US$22.7 billion, up 25% annually
• Executive jet deliveries up 45% year-on-year
• Defense & Security backlog increased by 70% to US$3.6 billion
• New firm contract for 9 C-390 aircraft with the Netherlands and Austria
• Services & Support backlog up 25% to US$3.5 billion

Negative

• Marginal decrease in Executive Aviation backlog (-4% quarter-on-quarter)
• Slight decrease in Commercial Aviation backlog (-1% quarter-on-quarter)

Insights

Financial Analyst

Embraer's Q3 2024 results demonstrate strong performance across multiple segments. The 33% year-over-year increase in deliveries to 57 aircraft shows robust demand and improved production capabilities. The company's backlog reaching a 9-year high of $22.7 billion, up 25% annually, indicates a healthy pipeline and future revenue potential.

Key highlights include:

• Executive Aviation deliveries up 46% year-over-year
• Commercial Aviation backlog increased 29% year-over-year
• Defense & Security backlog surged 69% year-over-year
• Services & Support backlog grew 27% year-over-year

The diversified growth across segments suggests Embraer is well-positioned to capitalize on various market opportunities. The significant backlog increase in Defense & Security, driven by new contracts for C-390 and A-29 aircraft, could provide stable long-term revenue streams. The expansion of customer support networks in Asia-Pacific and the U.S. should further strengthen the Services & Support segment.

Aerospace Industry Expert

Embraer's Q3 performance showcases its resilience and adaptability in a challenging aerospace market. The delivery of the first E2 aircraft to LOT Polish Airlines marks a significant milestone, potentially opening doors for more European carriers to adopt Embraer's efficient regional jets. The firm order from Virgin Australia for eight E190-E2 aircraft further validates the appeal of Embraer's commercial lineup.

The C-390 Millennium's progress is particularly noteworthy. Deliveries to Hungary and Brazil, coupled with the new contract for nine aircraft from the Netherlands and Austria, underscore the platform's growing international acceptance. This expansion in the military transport market could provide Embraer with a strong foothold in a segment traditionally dominated by larger manufacturers.

The company's strategic focus on expanding its support network, especially in high-growth regions like Asia-Pacific, demonstrates foresight in capturing aftermarket opportunities. This approach should help Embraer build long-term customer relationships and generate stable service revenues, complementing its manufacturing business.

• The company delivered 57 aircraft in 3Q24 versus 43 a year ago
• 2 C-390 Millennium aircraft delivered during the quarter and 6-12 A-29 Super Tucanos orders
• First E2 aircraft delivered to LOT Polish Airlines
• US$ 22.7 billion company wide backlog, up more than 25% annually and at a 9-year high level
• Defense & Security backlog soared almost 70%

SÃO PAULO, Oct. 18, 2024 /PRNewswire/ -- Embraer (NYSE: ERJ; B3: EMBR3), a global leader in the aerospace industry, delivered a total of 57 jets in 3Q24 – an increase of 33% compared to the same period last year (yoy) and 24% over to the previous quarter (qoq). Commercial aviation delivered 16 jets and Executive aviation delivered another 41 jets. Meanwhile, Defense & Security delivered 2 C-390 Millennium aircraft during the quarter – the first aircraft to Hungary and the seventh to Brazil.

Deliveries by Segment	3Q24	2Q24	3Q23	9M24	9M23	2024 Guidance
Executive Aviation	41	27	28	86	66	125-135
Phenom 100	4	2	2	7	5
Phenom 300	18	18	17	46	39
Light Jets	22	20	19	53	44
Praetor 500	9	3	4	15	10
Praetor 600	10	4	5	18	12
Medium Jets	19	7	9	33	22
Commercial Aviation	16	19	15	42	39	72-80
E195-E2	10	7	9	21	21
E190-E2	2	4	-	6	-
E175	4	8	6	15	18
Total	57	46	43	128	105	197-215*
Defense & Security	2	1	1	3	2
C-390 Millennium	2	1	1	3	2
*Excludes C-390 Millennium deliveries

The company wide backlog reached US$22.7 billion in 3Q24 (or more than 25% higher yoy and almost 10% higher qoq) – at a 9-year high level. Defense & Security registered the biggest increase in backlog (+US$1.5 billion) followed by Services & Support (+US$367 million), while Executive and Commercial Aviation recorded marginal decreases (-US$184 million and -US$168 million, respectively).

Backlog by Segment - US$bn	3Q24	2Q24	qoq	3Q23	yoy
Executive Aviation	4.4	4.6	-4 %	4.3	3 %
Commercial Aviation	11.1	11.3	-1 %	8.6	29 %
Defense & Security	3.6	2.1	70 %	2.2	69 %
Services & Support	3.5	3.1	12 %	2.8	27 %
Total	22.7	21.1	7 %	17.8	27 %

Executive Aviation Highlights

In Executive Jets, deliveries reached 41 units and increased more than 45% yoy and more than 50% qoq. The backlog of the business unit reached US$ 4.4 billion during the quarter, 3% higher annually but 4% lower sequentially.

The nominal decline in the backlog from its historical peak level can be explained by stronger growth (higher deliveries) and a seasonally slower period for sales because of summer in the northern hemisphere.

The mid and super-mid sized jets Praetor 500 and Praetor 600 represented close to half of the segment deliveries (19 jets) boosted by the positive momentum for this aircraft family. Meanwhile, the Phenom 300, the best-selling aircraft in its category for 12 consecutive years worldwide, was once again the top performer (18 jets) during the quarter.

Commercial Aviation Highlights

In Commercial Aviation, deliveries reached 16 jets (underpinned by 12 units from the E2 family and 4 from the E1) during the period, up more than 5% yoy. The highlight was the delivery of the first E2 aircraft under a contract signed with a lessor to supply LOT Polish Airlines – the agreement includes two more jets before year-end. Additionally, Virgin Australia placed a firm order for eight E190-E2 small narrowbody aircraft during the quarter. Consequently, the segment's backlog reached US$ 11.1 billion in 3Q24, almost 30% higher yoy and marginally lower qoq.

3Q24 Backlog - Commercial Aviation
Aircraft Type	Firm Orders	Deliveries	Firm Order Backlog
E195-E2	282	110	172
E190-E2	52	25	27
E175	943	768	175
Total	1,277	903	374

 

Customer (Country)	Firm Orders	Delivered	Firm Order Backlog
Embraer 195-E2	282	110	172
Azul (Brazil)	51	-	51
Porter (Canada)	75	42	33
Aercap (Ireland)	45	21	24
Azorra (USA)	23	7	16
Mexicana (Mexico)	10	-	10
Aircastle (USA)	23	14	9
Air Peace (Nigeria)	13	5	8
Binter Canarias (Spain)	16	10	6
Salam Air (Oman)	6	-	6
Luxair (Luxembourg)	4	-	4
ICBC (China)	10	7	3
Royal Jordanian (Jordanian)	2	-	2
Helvetic (Switzerland)	4	4	-

 

Customer (Country)	Firm Orders	Delivered	Firm Order Backlog
Embraer 190-E2	52	25	27
Mexicana (Mexico)	10	-	10
Virgin Australia (Australia)	8	-	8
Azorra (USA)	12	6	6
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 175	943	768	175
American Airlines (USA)	204	108	96
Republic Airlines (USA)	187	144	43
Skywest (USA)	228	208	20
Horizon Air / Alaska (USA)	50	44	6
Air Peace (Nigeria)	5	-	5
Undisclosed	4	-	4
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

Defense & Security Highlights

In Defense & Security, the Hungarian Air force took delivery of its first C-390 Millennium, and the Brazilian Air Force received its seventh unit. A new firm contract for the acquisition of nine C-390 aircraft was signed with the Netherlands and Austria, and announced at the Farnborough International Airshow (FIA). The positive momentum carried over to the A-29 Super Tucano, with sales contracts signed with Paraguay and Uruguay. The segment's backlog reached US$ 3.6 billion, up circa US$1.5 billion or about 70% both qoq and yoy.

Services & Support Highlights

The backlog of Services & Support reached US$ 3.5 billion for an increase of more than 25% yoy and more than 10% qoq. The company announced in the third quarter the expansion of its customer support network in the Asia-Pacific region through partnerships with SIA Engineering Corporation and Fokker Services Asia, and in the United States with direct investment in new facilities in Texas.

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.

View original content:https://www.prnewswire.com/news-releases/embraer-recorded-a-33-year-on-year-increase-in-deliveries-and-reached-a-new-us-22-7-billion-backlog-record-302280895.html

SOURCE Embraer S.A.

FAQ

How many aircraft did Embraer (ERJ) deliver in Q3 2024?

Embraer delivered a total of 57 aircraft in Q3 2024, including 16 commercial jets, 41 executive jets, and 2 C-390 Millennium aircraft.

What was Embraer's (ERJ) backlog value at the end of Q3 2024?

Embraer's backlog reached a record US$22.7 billion at the end of Q3 2024, representing a more than 25% increase year-on-year and a 9-year high level.

How many E2 aircraft did Embraer (ERJ) deliver to LOT Polish Airlines in Q3 2024?

Embraer delivered the first E2 aircraft to LOT Polish Airlines in Q3 2024, with two more jets scheduled for delivery before year-end.

What was the percentage increase in Embraer's (ERJ) Defense & Security backlog in Q3 2024?

Embraer's Defense & Security backlog increased by approximately 70% both quarter-on-quarter and year-on-year in Q3 2024.