Company Overview - Embraer S.A. is a Brazilian company that designs, manufactures, and sells aircraft and aviation-related structural parts, serving commercial aviation, executive aviation, and defense markets [12] - The company was established in 1960 by the Brazilian government and privatized in 1994, and it has delivered over 8,000 jets [12] Investment Ratings - Embraer is currently rated as 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid performance potential [12] - The company has a Momentum Style Score of A, with shares increasing by 9% over the past four weeks [13] Earnings Estimates - For fiscal 2024, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.25 to $1.56 per share [13] - Embraer has an average earnings surprise of 52.3%, suggesting strong performance relative to expectations [13]

Company Overview - Embraer S.A. (ERJ) has secured a contract from the Uruguayan Air Force to deliver up to six A-29 Super Tucano aircraft, with deliveries expected to begin in 2025 [1] - This contract marks Uruguay as the sixth South American nation to adopt the A-29 Super Tucano, which is expected to enhance ERJ's top-line performance [1] Product Details - The A-29 Super Tucano is known for its operational versatility across various environments, including the Amazon rainforest and colder regions of Chile, and is widely used for border surveillance, reconnaissance, and advanced training [3] - The aircraft is recognized globally for its multi-mission capabilities, combining cost-effectiveness, advanced technology, and reliable performance, making it suitable for nations looking to enhance their air defense capabilities [4] Market Trends - The demand for military jets is increasing due to rising geopolitical tensions and the need for nations to modernize their defense capabilities, with countries investing heavily in their air forces [5] - The global fighter aircraft market is projected to witness a compound annual growth rate (CAGR) of 37% from 2024 to 2029, which is expected to benefit Embraer and its aircraft like the A-29 Super Tucano and C-390 Millennium [6] Peer Analysis - Other aerospace companies, such as Boeing and Lockheed Martin, are also positioned to benefit from the expanding fighter aircraft market, with Boeing's Defense, Space & Security division and Lockheed's advanced military jet programs [7][8] - Boeing has a long-term earnings growth rate of 21.3%, while Lockheed Martin has a long-term earnings growth rate of 4.7% [8][9] Stock Performance - ERJ's shares have gained 9.6% in the past month, outperforming the industry's growth of 1.4% [11]

kamilpetran/iStock Editorial via Getty Images In September 2022, I marked Embraer a stock a buy and that buy rating has paid off extremely well with a nearly 220% increase in Embraer stock prices compared to a 38.5% gain for the broader markets. Since my strong buy rating in February of this year, the stock has gained 84% and now actually exceeds my price target. In this report, I will discuss the most recent results, assess the risks and opportunities and update my price target and rating. Why Our Embraer ...

Embraer S.A. (ERJ) recently clinched a contract from Virgin Australia for delivering eight of its E190-E2 small narrowbody aircraft. Deliveries are expected to start in the second half of 2025. The steady stream of orders for Embraer's E190-E2 aircraft underscores the jet maker's ability to meet the growing jet demand from airlines. Significance of Embraer's E190-E2 Jets The E190-E2 is considered to be the most fuel-efficient single-aisle aircraft, with the capacity to reduce emissions by about 30% compared ...

E190-E2 fleet to be based in Perth, Western Australia Embraer's E2 offers outstanding comfort, performance, the lowest noise emissions and fuel burn Delivery starts 2H2025 PERTH, Australia, Aug. 12, 2024 /PRNewswire/ -- Virgin Australia has placed a firm order with Embraer (B3: EMBR3, NYSE: ERJ) for eight E190-E2 small narrowbody aircraft, as part of its fleet renewal plan. The order will see the E190-E2, the world's most fuel-efficient single-aisle aircraft with the lowest noise emissions, complement the a ...

Financial Data and Key Metrics - Q2 2024 revenues increased by over 15% YoY, driven by Defense & Security (up over 100%), Commercial Aviation, and Service & Support (both up around 20%) [4] - First-half 2024 revenues grew 19% YoY, with Defense & Security leading at 50% growth, followed by Executive Aviation (24%), Service & Support (16%), and Commercial Aviation (12%) [5] - Operating margin improved by 1.6% to 9.3% in Q2, with a 2.7% gain in the first half of 2024 [5] - Firm order backlog reached $21.1 billion, the highest in seven years, with a book-to-bill ratio exceeding 2.2:1 [6] - Adjusted EBITDA for Q2 2024 was $190 million, with a 12.7% margin, compared to $149 million in Q2 2023 [15] - Adjusted EBIT margin improved to 9.3% in Q2 2024, supported by one-time items that boosted the margin by 250 basis points [17] Business Unit Performance - **Commercial Aviation**: Backlog increased by $3.3 billion YoY to $11.3 billion, with a book-to-bill ratio above 4:1. Deliveries and revenues nearly tripled sequentially in Q2, reaching 19 aircraft and $554 million [8] - **Executive Aviation**: Recorded the strongest first half in 10 years, with revenues of $575 million and 45 aircraft delivered. Backlog increased by $300 million to $4.6 billion, with a 1.5:1 book-to-bill ratio [9] - **Defense & Security**: Revenues increased 2.3 times YoY, with an adjusted EBIT margin improving to -0.5% in Q2 2024 from -4.1% in Q2 2023 [9] - **Service & Support**: Revenue grew 20% YoY in Q2, with a 1.3% gain in adjusted EBIT margin. Backlog remained stable at $3.1 billion [10] Market Performance - Commercial Aviation saw strong demand, with Mexicana de Aviación ordering 10 E190-E2s and 10 E195-E2s, with deliveries starting in Q2 2025 [6] - Defense & Security secured contracts for 90 C-390 Millennium aircraft with the Netherlands and Austria, and six Super Tucano aircraft with Paraguay [6] - Executive Aviation capitalized on strong sales momentum in both fleet and retail markets [7] Strategy and Industry Competition - The company is focused on improving supply chain efficiency by localizing teams near critical suppliers and implementing digital tools and AI [7] - Embraer remains confident in its eVTOL business, with EVE completing a $96 million equity round and progressing in prototype development [10][11] - The company reiterated its 2024 operational and financial guidance, expecting strong demand in its main markets [5] Management Commentary on Operating Environment and Future Outlook - Management highlighted ongoing supply chain challenges but expressed confidence in meeting 2024 delivery guidance [12][24] - The company expects double-digit growth in aircraft deliveries, revenue, and EBIT for 2024 and 2025, despite operational challenges [12] - Management sees bright prospects for the company, with a strong backlog and strategic plan in place [21] Other Important Information - The company completed the first flight of the E190 Freighter, a passenger-to-cargo conversion, certified by ANAC in July 2024 [10] - Embraer extended its revolving credit facility from $650 million to $1 billion, reflecting improved liquidity for Q3 [19] Q&A Session Summary Supply Chain and Delivery Guidance - Management expressed confidence in meeting 2024 delivery guidance despite supply chain challenges, citing proactive measures such as localized teams and digital tools [23][24] EBITDA Margin and Guidance - The company is closer to the high end of its EBITDA margin guidance, with potential for upside if all aircraft are delivered as planned [27][28] Defense Revenue Outlook - Defense revenues are expected to reach around $600 million in 2024, driven by C-390 and Super Tucano deliveries [30][31] EBIT Margin Impact - One-time items, including tax credits, boosted the EBIT margin by 250 basis points in Q2 [33][34] Commercial Aviation Orders - The company is working on multiple sales campaigns globally and expects new orders in Q3 and beyond [35] Business Jet Market - Strong demand for business jets continues, with production ramp-up being the primary challenge [37] Defense Margin Outlook - Defense margins are expected to improve, potentially reaching lower teens in the coming years [40][41] Cash Flow and Working Capital - The company expects to recover cash in Q4 as deliveries increase, with a target of turning 50% of EBITDA into cash [53][54] C-390 Profitability - The C-390 program is expected to be profitable by the end of 2024 [56] Digital Design Tools - Embraer is using digital tools like MES to improve manufacturing efficiency [61] LatAm Market and Competition - The company sees the E2 as a competitive product in the LatAm market, with ongoing discussions with potential customers [65][66] Stock Performance - Embraer's stock has grown significantly since the pandemic, with further growth expected [69][70] U.S. Defense Market - The company is exploring opportunities to penetrate the U.S. defense market, including potential mergers and acquisitions [73][74]

SÃO PAULO, Aug. 8, 2024 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) RELEASES ITS SECOND QUARTER 2024 EARNINGS RESULTS. HIGHLIGHTS Embraer delivered 47 jets in 2Q24 of which 27 were executive jets (20 light and 7 medium), 19 were commercial jets and 1 multi-mission C-390 Millennium in Defense – an increase of 88% compared to the 25 aircraft delivered in 1Q24. Firm order backlog of US$21.1 billion in 2Q24 – a 7-year high, up more than 20% annually. For more information please see our 2Q24 Backlog and ...

FARNBOROUGH, England, July 23, 2024 /PRNewswire/ -- Embraer has published Market Outlook 2024, its 20-year forecast for commercial aircraft deliveries in the sub-150-seat category. The report was presented at a press briefing during the Farnborough International Airshow today. The relevance of the small narrowbody category is increasing. Larger aircraft are not always economically or operationally optimal for medium and lower-density markets, particularly when multiple daily frequencies are essential for th ...

FARNBOROUGH, England, July 23, 2024 /PRNewswire/ -- Embraer (B3: EMBR3, NYSE: ERJ) announced today during the Farnborough International Airshow, the most important aerospace industry event of the year, the sale of six A-29 Super Tucano aircraft to the Paraguayan Air Force (FAP). "We are honored by the Paraguayan Air Force (FAP) decision and very pleased to be able to announce more A29 Super Tucano sales, which is a leading aircraft in the international market in its segment. We are confident that the A-29 m ...

More than 7,500 CF34 engines are in service with more than 900 Regional and Business Jet operators globally. The CF34-8E has accumulated more than 40 million flight hours and 29 million cycles since entering service on the Embraer E170/175 in 2004. Today, the CF34 engine line, which includes -3, -8, and -10 models, powers more than 2,500 regional commercial aircraft. GE Aerospace has delivered nearly 11,000 CF34 engines and the line has a track record for outstanding reliability and durability, with a dispa ...