Embraer Soars to New Heights

Embraer (NYSE: ERJ; B3: EMBR3) has delivered an impressive performance in the second quarter of 2024, with deliveries increasing by a staggering 88% compared to the previous quarter. The company delivered 47 jets in 2Q24, up from 25 in 1Q24, marking a significant achievement in both commercial and executive aviation sectors.

Commercial Aviation Takes Off

Commercial deliveries saw an extraordinary surge of approximately 170%, with 19 jets delivered in 2Q24 compared to just 7 in 1Q24. This growth is attributed to several key developments, including a notable order from Mexicana de Aviación for 20 E2 jets. This order consists of 10 E190-E2 jets and 10 E195-E2 jets, with deliveries set to commence in the second quarter of 2025. Additionally, Embraer celebrated the delivery of its 1,800th E-Jet to the leasing company Azorra, which will be operated by Royal Jordanian Airlines.

Executive Jets Maintain Steady Ascent

The Executive Jets segment also showed robust performance, delivering 27 aircraft in 2Q24, a 50% increase from the 18 jets delivered in 1Q24. This segment's backlog rose marginally to $4.6 billion, reflecting continued strong demand in both fleet and retail markets.

Defense & Security: A Mixed Bag

In the Defense & Security sector, Embraer delivered the second C-390 Millennium to the Portuguese Air Force. This milestone was celebrated in Gavião Peixoto, Brazil. Despite this significant delivery, the Defense & Security backlog saw a decrease of 10% quarter-over-quarter, standing at $2.1 billion. However, the potential inclusion of new European orders for the C-390 could drive future growth.

Services & Support: A Pillar of Stability

The Services & Support unit remains a crucial growth driver for Embraer, maintaining a stable backlog of $3.1 billion. The unit's commitment to operational excellence, customer experience, and innovative solutions continues to solidify its position in the market.

Backlog Reaches New Heights

Overall, Embraer's backlog has reached a seven-year high, totaling $21.1 billion, a more than 20% increase year-over-year and a slight increase quarter-over-quarter. This growth is largely driven by the commercial aviation sector, which saw a $227 million increase, bringing its backlog to $11.3 billion.

Key Highlights

• Commercial Aviation: 19 jets delivered, 170% increase quarter-over-quarter

• Executive Jets: 27 jets delivered, 50% increase quarter-over-quarter

• Defense & Security: Second C-390 Millennium delivered to Portugal

• Backlog: $21.1 billion, a seven-year high

Embraer's impressive performance in 2Q24 underscores its strength and resilience in the aviation industry, setting the stage for continued success in the coming quarters.

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