Embraer backlog reached the highest level over past 7 years and deliveries increased 67% in 1Q24

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04/19/2024 - 07:56 PM EDT

Strong overall backlog volume of US$ 21.1 billion (+13% QoQ)
American Airlines placed a firm order for 90 E175 jets
Commercial Aviation backlog rose US$2.3 billion (+26% QoQ)
1Q Executive Aviation deliveries were the highest of the last 8 years

SÃO JOSÉ DOS CAMPOS, Brazil, April 19, 2024 /PRNewswire/ -- Embraer (NYSE: ERJ; B3: EMBR3) delivered 25 jets in 1Q24, an increase of 67% compared to the 15 aircraft delivered in 1Q23. Executive Aviation showed robust delivery growth, soaring from 8 to 18 jets during the period. The number of deliveries was the highest 1Q of the last 8 years, and more than doubled YoY. Meanwhile, for Commercial Aviation, deliveries were flat YoY at 7 aircraft.

Deliveries by Segment	1Q23	1Q24	2024 Guidance

*Executive Aviation*	8	18	125-135
Phenom 100	2	1
Phenom 300	4	10
Light Jets	6	11
Praetor 500	-	3
Praetor 600	2	4
Medium Jets	2	7

*Commercial Aviation*	7	7	72-80
E195-E2	5	4
E175	2	3

Total	15	25	197-215

Embraer delivered 12% of the total number of aircraft implied by the mid-point of the current year guidance for both Executive and Commercial Aviation (25 out of 206). The company has developed, and it is currently implementing, a plan to mitigate its business seasonality. The Production Leveling plan main objective is to have a stable production pace throughout the calendar year in the near to medium-term future.

The company's backlog increased US$2.4 billion or 13% sequentially to US$21.1 billion in 1Q24, compared to a total backlog of US$18.7 billion in 4Q23. The biggest increase happened in Commercial Aviation (US$2.3 billion or 26%) while the smallest one was in Defense & Security (-US$0.1 billion or –4%).

Backlog by Segment - US$bn	4Q23	1Q24	QoQ

Executive Aviation	4.3	4.6	7 %
Defense & Security	2.5	2.4	-4 %
Commercial Aviation	8.8	11.1	26 %
Services & Support	3.1	3.1	0 %

Total	18.7	21.1	13 %

Executive Aviation kept its sales momentum with sustained demand across its entire product portfolio and strong customer acceptance, in both retail and fleet markets. The number of deliveries increased 83% YoY in the light jets segment, and more than tripled in the medium jets one compared to 1Q23. Consequently, Executive Aviation ended with a US$4.6 billion backlog in 1Q24, for a US$ 300 million sequential increase.

In Defense & Security, the first C-390 Millennium of the Hungarian Air Force successfully completed its maiden flight. The aircraft is now undergoing a mission systems integration test campaign, ahead of its entry into service. Another important milestone in the quarter was the first Embraer Defense Day in the United States; an event during which the C-390 Millennium and the A-29 Super Tucano were showcased to government authorities, military officials, prospects, and partners at our facilities in Melbourne, Florida. The C-390 selection by some countries in the EMEA and APAC regions has not yet been incorporated into the backlog, which represents a significant source of upside potential for the coming quarters. The Defense & Security backlog reached US$2.4 billion (-4% QoQ) in 1Q24.

Services & Support continues to be one of the main drivers of Embraer's growth through a combination of operational excellence, customer experience, and innovative solutions. The business unit backlog finished the period sequentially flat at US$ 3.1 billion in 1Q24.

Commercial Aviation posted a US$11.1 billion backlog, or US$2.3 billion higher than in 4Q23. The highlight of the quarter was the deal with American Airlines for 90 E175s, with purchase rights for another 43 additional jets, to meet domestic demand in the United States. Also, Embraer delivered one E195-E2 to Azorra, which will fly under the Royal Jordanian flag.

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