Embraer Stock Price, News & Analysis

Embraer (NYSE: ERJ) has announced a historic purchase agreement with Flexjet, valued at up to USD $7 billion at current list prices. The deal includes a firm order of 182 aircraft and 30 options, comprising Praetor 600, Praetor 500, and Phenom 300E models, along with enhanced services and support.

This represents the largest order in Flexjet's 30-year history and the largest firm order for Embraer's executive aircraft. The agreement will nearly double Flexjet's fleet size in the next five years. Flexjet, which has been partnering with Embraer since 2003, has previously accepted delivery of more than 150 Embraer aircraft and has been the first fleet customer for multiple Embraer products, including the Phenom 300 in 2010 and the Praetor series in 2019.

Embraer (ERJ) reported strong delivery performance in Q4 2024, with 75 aircraft delivered, marking a 27% increase from Q3 2024's 59 deliveries. The company achieved total deliveries of 206 aircraft in 2024, representing a 14% increase from 2023's 181 aircraft.

Commercial Aviation delivered 31 aircraft in Q4, reaching 73 deliveries for 2024, meeting the revised guidance of 70-73 aircraft. Executive Aviation delivered 44 jets in Q4, totaling 130 deliveries for the year, hitting the midpoint of their 125-135 guidance. The Defense & Security segment delivered 3 C-390 Millennium aircraft in 2024, up from 2 in 2023.

By model breakdown, the E195-E2 led commercial deliveries with 39 units, while the Phenom 300 dominated executive aviation with 65 deliveries. The company's performance showed growth across all business units, with Commercial and Executive Aviation increasing by 14% and 13% respectively year-over-year.

Embraer (NYSE: ERJ) announced that the Uruguayan Air Force has converted options for five A-29 Super Tucano aircraft into firm orders, following a previous commitment from August 2024 that included one firm order plus options. The deal includes mission equipment, integrated logistics services, and a flight simulator as part of Uruguay's fleet renewal program.

Uruguay becomes the sixth nation in South America to operate the A-29. With this order and Portugal's recent A-29N acquisition, the Super Tucano reaches 20 operators worldwide with over 290 orders. The aircraft offers multiple mission capabilities including close air support, air patrol, special operations, border surveillance, and training functions.

The agreement marks a significant milestone as it coincides with the 50th anniversary of Embraer's first export contract, which was also with Uruguay.

Embraer (NYSE: ERJ) has secured a firm order for six A-29 Super Tucano aircraft from an undisclosed customer. The order will be included in Q4 2024 backlog, with deliveries scheduled for 2026. The aircraft will be equipped with enhanced capabilities for missions including battlefield air interdiction, close air support, maritime patrol, and territorial defense operations.

The A-29 Super Tucano, recognized as the global leader in its category, has received over 290 orders and accumulated more than 570,000 flight hours, including 60,000 in combat. In 2024, Embraer secured additional orders from the Portuguese, Uruguayan, and Paraguayan Air Forces. The aircraft's versatility allows for multiple missions on a single platform and operation from unpaved runways in austere environments.

Embraer (NYSE: ERJ) announced its Board of Directors has approved derivative agreements of 'Equity Swap' with Banco Itaú BBA. The agreements, effective December 13, 2024, will involve cash settlement within 12 months and cover up to 16,156,597 common shares. Under the swap terms, Embraer will receive price variations of its traded shares plus dividends while paying CDI plus a fee. The primary purpose is to mitigate share price fluctuations in anticipation of future payments related to the company's long-term incentive plans.

Embraer (NYSE: ERJ) has updated its 2024 guidance, revising key projections. While maintaining Executive Aviation deliveries at 125-135 units and consolidated revenues at $6.0-6.4 billion, the company has adjusted Commercial Aviation deliveries downward to 70-73 units from the previous 72-80 range. However, Embraer has increased its adjusted EBIT margin projection to 9%-10% from 6.5%-7.5%, and raised its free cash flow forecast to $300 million or higher from the previous $220 million target. These projections exclude EVE and are subject to market conditions and risks beyond the company's control.

Embraer (ERJ) reported strong Q3 2024 results with revenues of US$1,692 million, up 32% year-over-year. The company delivered 59 jets in Q3, representing a 37% increase YoY. The firm order backlog reached a 9-year high of US$22.7 billion, up 25% YoY. Management updated 2024 guidance, adjusting Commercial Aviation deliveries to 70-73 aircraft while maintaining Executive Aviation at 125-135 aircraft. The company raised its Adjusted EBIT margin guidance to 9.0-10.0% and Adjusted Free Cash Flow forecast to US$300 million or higher. Fitch Ratings upgraded Embraer to Investment Grade (BBB-) with a stable outlook.

Viasat and Embraer have announced a collaboration to integrate advanced hybrid satellite communications capabilities on the Embraer C-390 Millennium military aircraft. Viasat will provide its Hybrid SATCOM Approach (HSA) based on the dual-band GAT-5530 terminal. The system will enable multi-band, multi-orbit connectivity supporting Viasat's networks, third-party networks, and government networks including WGS. The integration will provide secure and reliable satellite connectivity with automated failover, enhancing operations with resilient broadband SATCOM for tactical missions.

The Czech Ministry of Defense has signed a contract to acquire two Embraer C-390 Millennium multi-mission transport aircraft, making the Czech Republic the fourth NATO member to purchase this model. The aircraft will modernize the Czech Air Force's capabilities, enabling tactical transport, medical evacuation, firefighting, disaster management, humanitarian support, and air-to-air refueling missions. The deal includes a comprehensive training and support package and will boost the local aerospace industry's participation in production. The C-390 features a 26-ton payload capacity, 470-knot top speed, and has demonstrated a 93% mission capability rate with over 15,000 flight hours globally.