EMBRAER S.A.: MATERIAL FACT

Rhea-AI Summary

Embraer (NYSE: ERJ) has announced a significant development pause in its E175-E2 jet program. The Board of Directors approved an additional four-year delay in the program's development, extending the previous pause announced in February 2022. This decision is primarily driven by two factors: ongoing discussions with US pilot unions regarding maximum take-off weight limitations for aircraft with up to 76 seats, and current global market conditions in commercial aviation.

The company notes continued market interest in the current E175 jet model in the US market. Embraer plans to resume program development after this four-year period, which will consequently affect the aircraft's entry into service timeline.

Positive

• Continued strong market interest in current E175 jet model in US market

Negative

• Additional 4-year delay in E175-E2 development program
• Entry into service timeline pushed back further
• Regulatory constraints affecting program viability

EMBRAER S.A.
Publicly Held Company
CNPJ/MF: 07.689.002/0001-89
NIRE: 353.003.257-67

SÃO JOSÉ DOS CAMPOS, Brazil, Feb. 25, 2025 /PRNewswire/ -- EMBRAER S.A. (B3: EMBR3, NYSE: ERJ) ("Embraer"), in attention to Resolution CVM nº 44/2021 and in addition to the Material Fact disclosed on February 18, 2022, informs its shareholders and the market in general that today the Board of Directors approved an additional four-year pause in its E175-E2 jet development program.

The re-programing of activities remains associated with the ongoing US mainline scope clause discussions with the pilot unions regarding the maximum take-off weight (MTOW) limitation for aircraft with up to 76 seats, together with current global market conditions for commercial aviation and the continuing interest in the current E175 jet in the US market.

The Company expects to resume the program development activities following the aforementioned period, which will result in a re-programming of the aircraft entry into service.

In keeping with its strategy of innovation and growth, the Company will maintain its shareholders and the market duly informed about new material information according to the applicable legislation.

São José dos Campos, February 25, 2025.

Antonio Carlos Garcia
Executive Vice President, Financial & Investor Relations

View original content:https://www.prnewswire.com/news-releases/embraer-sa-material-fact-302385389.html

SOURCE Embraer S.A.

FAQ

Why did Embraer pause the E175-E2 jet development program in 2025?

Embraer paused the E175-E2 program due to US pilot union scope clause discussions regarding maximum take-off weight limits for 76-seat aircraft and current market conditions, while seeing continued demand for the existing E175.

How long will the ERJ E175-E2 development program be delayed?

The program will be delayed for an additional four years, as approved by Embraer's Board of Directors on February 25, 2025.

What are the main challenges affecting the ERJ E175-E2 program development?

The main challenges are US mainline scope clause restrictions on maximum take-off weight for 76-seat aircraft and current global commercial aviation market conditions.

Will the E175-E2 delay affect Embraer's current E175 jet sales?

No, Embraer reports continuing interest in the current E175 jet model in the US market despite the E175-E2 program delay.