Embraer Stock Price, News & Analysis

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.

Virgin Australia has placed a firm order with Embraer for eight E190-E2 aircraft, set to be delivered from the second half of 2025. The E190-E2, known for its fuel efficiency and low noise emissions, will be based in Perth and operated by Virgin Australia Regional Airlines (VARA). This order marks a significant step in Virgin Australia's fleet renewal plan, replacing its aging Fokker fleet.

The E190-E2 boasts a 30% reduction in emissions compared to the outgoing F100 and features Pratt & Whitney's PW1900G engines. It's certified to fly with up to 50% sustainable aviation fuel (SAF) blends. This acquisition aligns with Embraer's commitment to achieving net zero emissions by 2050 and carbon neutrality by 2040.

Embraer (NYSE: ERJ; B3: EMBR3) reported its second-quarter results for 2024. Key highlights include the delivery of 47 jets, marking an 88% increase from 1Q24. Deliveries comprised 27 executive jets, 19 commercial jets, and 1 multi-mission C-390 Millennium. The firm order backlog reached $21.1 billion, a 7-year high, up over 20% annually.

Revenues totaled $1.494 billion, up 67% qoq, with commercial aviation revenues rising by 176%. Adjusted EBIT was $138.8 million with a 9.3% margin, improving from $6.8 million (0.8%) in 1Q24. However, adjusted free cash flow was negative at $(215) million due to working capital needs.

The company reiterated its 2024 guidance, expecting commercial aviation deliveries of 72-80 aircraft and executive aviation deliveries of 125-135. Total revenues are forecasted between $6.0-6.4 billion with an adjusted EBIT margin of 6.5%-7.5%, and adjusted free cash flow of $220 million or higher.

Embraer has released its Market Outlook 2024, forecasting demand for 10,500 new sub-150-seat jets and turboprops through 2043, valued at USD 640 billion. The report highlights the increasing relevance of small narrowbody aircraft in complementing larger jets for medium and lower-density markets. North America is expected to lead jet deliveries, followed by Asia Pacific and Europe.

Key points include:

• Global passenger traffic (RPKs) forecast to grow 4% annually through 2043
• 8,470 jet and 2,030 turboprop deliveries expected
• Asia Pacific projected to have the highest RPK growth rate at 5.0%
• Emphasis on mixed fleets of small and large narrowbodies for optimal network service
• New opportunities identified for small-narrowbody freighters in e-commerce growth

Embraer (B3: EMBR3, NYSE: ERJ) announced the sale of six A-29 Super Tucano aircraft to the Paraguayan Air Force (FAP) at the Farnborough International Airshow. The multi-mission aircraft will be delivered starting in 2025, including mission equipment and integrated logistics services. The A-29 Super Tucano is the global leader in its category, with over 260 orders and 550,000 flight hours. It offers versatility for armed reconnaissance, close air support, light attack, and advanced training missions on a single platform. The aircraft is known for its cost-effectiveness, accessibility, and operational flexibility, making it an attractive choice for air forces worldwide.