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$21.1 billion in 1Q24. Despite facing supply chain delays, the company remains committed to stabilizing its production levels and meeting customer demand. With a focus on innovation, customer satisfaction, and long-term relationships, Embraer is poised for sustained growth and strategic expansion in the global aerospace market.
On June 1, 2021, Eve Urban Air Mobility Solutions announced a partnership with Halo to develop Urban Air Mobility (UAM) solutions in the U.S. and the U.K. This collaboration involves an order for 200 electric vertical takeoff and landing (eVTOL) aircraft, with deliveries starting in 2026. Halo will be the launch partner for Eve in these markets, providing operational expertise. This partnership aims to address regulatory challenges and enhance urban air traffic management.
Embraer has finalized an agreement to sell eight E175 jets to SkyWest for operation with Alaska Airlines, adding to SkyWest's existing fleet. This contract, valued at USD 399.2 million, will bolster Embraer's backlog for Q2 2021. The delivery of the 76-seat aircraft will commence in 2022. Alaska Airlines currently operates 62 E175 jets, which will help expand their route offerings. Embraer holds an impressive 85% market share in the 70-90 seat aircraft segment in the North American region.
Embraer has secured a contract to sell nine E175 jets to Alaska Air Group, valued at USD 449.1 million. These jets will operate under a Capacity Purchase Agreement, further solidifying Embraer's presence in the regional market, where it holds an 85% market share for 70-90 seat aircraft. Alaska Air Group will also receive eight additional E175s through a commitment with SkyWest Airlines. Deliveries of the new aircraft are set to commence in 2022. This order is expected to enhance Alaska Airlines' capacity and support its growth strategy.
Embraer S.A. (NYSE: ERJ) reported its 1Q21 earnings results revealing revenues of US$ 807.3 million, a 27.4% increase from 1Q20, driven by strong deliveries in the commercial and executive jet segments. The firm order backlog stood at US$ 14.2 billion. However, adjusted net loss was US$ (95.9) million, with an adjusted loss per ADS of US$ (0.52). Free cash flow usage was US$ (226.6 million), significantly improved from US$ (676.6 million) in 1Q20. Due to ongoing pandemic uncertainties, no 2021 financial guidance was provided.
Embraer delivered 22 jets in Q1 2021, comprising 9 commercial aircraft and 13 executive jets, including models like the E195-E2. The firm order backlog stands at USD 14.2 billion as of March 31, 2021. Notable deliveries include the first E195-E2 to KLM Cityhopper and Air Peace, with Air Peace being the launch customer for the E2 in Africa. The backlog for Commercial Aviation includes significant orders for the E175, E190, and E195 series, totaling 1,904 firm orders.
Embraer S.A. (NYSE: ERJ) reported its FQ4 2020 earnings, delivering 28 commercial and 43 executive jets, with a total backlog of US$ 14.4 billion. FQ4 revenues were US$ 1,841.4 million, down 11.7% year-over-year, and full-year revenues fell 31.0% to US$ 3,771.1 million. The adjusted net loss for FQ4 was US$ (12.5) million and for the fiscal year, it reached US$ (463.7) million. Despite cash generation of US$ 725.1 million in FQ4, the company did not provide guidance for 2021 due to ongoing COVID-19 uncertainties.
Embraer supports the Brazilian Government's withdrawal of the WTO dispute against Canada over aeronautical subsidies. This dispute, challenging over USD 3 billion in illegal subsidies to Bombardier, was deemed ineffective after Bombardier exited the commercial aviation market. Instead, Embraer endorses negotiations for stricter regulations on government support in the sector, aiming for a fair competitive landscape. This shift aligns with previous successful frameworks like the OECD's Aircraft Sector Understanding, emphasizing fair competition among manufacturers.
Embraer (NYSE: ERJ) delivered a total of 71 jets in Q4 2020, comprising 28 commercial and 43 executive aircraft, reflecting a decrease from Q4 2019. The yearly total for 2020 stands at 130 jets, down nearly 35% from 2019's 198 jets. The impact of COVID-19 is evident in reduced deliveries, particularly in commercial aviation. Despite challenges, the firm order backlog was USD 14.4 billion as of December 31. Significant deals included deliveries to Flexjet and Belavia, as well as a firm order from Congo Airways.
Congo Airways has placed a firm order for two additional E195-E2 jets, adding to their existing order for two E190-E2 jets, totaling four aircraft valued at USD 272 million. This order reflects Congo Airways' strategy to capitalize on market opportunities and enhance their regional operations to destinations like Cape Town and Johannesburg. The E195-E2 jets will feature a dual-class layout with 120 seats, providing a 25% increase in capacity compared to the E190-E2. Deliveries are expected to start in 2022.
Embraer's 2020 Commercial Market Outlook highlights significant shifts in global air travel demand due to the pandemic, forecasting a return to 2019 passenger traffic levels by 2024 but 19% lower than previous estimates. Key trends include a shift to smaller aircraft, regionalization, changing passenger behaviors favoring shorter flights, and an emphasis on environmentally efficient aircraft. The report anticipates 4,420 new jet deliveries, primarily in North America and Asia Pacific, along with 1,080 turboprop deliveries, reshaping the commercial aviation landscape.
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