#Brazil #São Paulo #Aerospace #Embraer #Executive Jets

Embraer's Remarkable Q1 2025 Performance

In a significant achievement for the aerospace sector, Embraer, listed on NYSE as ERJ and B3 as EMBR3, reported a staggering $26.4 billion backlog at the end of the first quarter of 2025. This figure sets a new record, surpassing the previous high reached just the quarter before. The company, recognized globally as a leader in aviation manufacturing, focuses on various segments, including commercial and executive jets, defense, and support services.

Breakdown of Backlog by Segment

The backlog for Embraer's different aviation segments showcases impressive magnitudes:

• - Commercial Aviation: Secured a backlog of $10.0 billion, experiencing a slight dip of 2% quarter-over-quarter but reflecting a robust demand over the past year.
• - Executive Jets: Reached a new record of $7.6 billion, soaring 3% from the previous quarter, which highlights the growing preference for Embraer’s executive models, particularly the Phenom series that has been consistently recognized as a market leader.
• - Defense & Security: Maintained a stable backlog of $4.2 billion, which is consistent with last quarter, despite experiencing substantial growth of 73% year-over-year.
• - Services & Support: Remained steady at $4.6 billion, reflecting Embraer's commitment to provide continuous support and services beyond deliveries.

Q1 2025 Deliveries

In terms of aircraft deliveries, Embraer successfully delivered 30 aircraft during Q1 2025, which is a 20% increase compared to the same quarter of the previous year when 25 units were delivered. This output represents 13% of the year-end guidance, a number that aligns closely with historical averages, showcasing efficient throughput and operational effectiveness against ongoing challenges in the supply chain.

Breakdown by Segment

• - Executive Aviation:

- Delivered 23 jets, comprised mostly of light and midsize categories. This represented a staggering 28% increase compared to Q1 2024.
- The Phenom 300 series, recognized as the world’s best-selling light jet, continues to show its strength in the market.

• - Commercial Aviation:

- This segment saw deliveries of 7 aircraft, participating actively in the company’s target of 222 to 240 deliveries for 2025. A notable order from ANA Holdings for 15 E190-E2 jets is anticipated to boost these figures upon the finalization of contracts later this year.

Challenges and Expectations

Despite the positive outlook, the Commercial Aviation sector still faces certain challenges, particularly related to supply chain issues that resulted in a few undelivered units. The management remains optimistic, foreseeing an improvement in production rates that could become tangible in the upcoming quarters. Looking ahead to the second half of the year, these efforts are expected to resolve earlier setbacks.

Conclusion

As Embraer navigates the complexities of the aviation market, the results from Q1 2025 clearly indicate a resilient company with robust growth potential. With an impressive backlog of $26.4 billion, Embraer's strategic focus on expanding both its commercial and executive aviation divisions positions it well for future growth and stability in the ever-evolving aerospace sector.