Brazilian aerospace giant Embraer (NYSE: ERJ) has enjoyed solid growth in its third quarter of 2024. Aircraft deliveries across its combined divisions reached new heights amid a substantial increase in its order backlog.
The company’s performance across its commercial, executive, and defense divisions signals strong market demand and operational efficiency.
Overall, Embraer delivered 57 aircraft in Q3 2024 versus 43 for the same period last year. The manufacturer as a record US$ 22.7 billion company wide backlog. This is up more than 25% annually and is presently at a 9-year high level.
Notable, the Defense & Security division backlog has soared almost 70% for the quarter.
Strong Delivery Performance Across Segments
The aerospace manufacturer delivered 57 aircraft in Q3 2024, marking a significant 33% increase compared to the same period last year.
Quarter-over-quarter growth was equally impressive at 24%. This surge in deliveries spans multiple aircraft categories, highlighting Embraer’s diverse product portfolio.
Executive Aviation Leads the Way
Executive aviation led the delivery numbers with 41 jets, showing remarkable growth of over 45% year-over-year.
The popular Praetor series, including the Praetor 500 and 600 models, accounted for 19 deliveries. The Phenom 300 maintains its status as the best-selling aircraft in its category. It has held this accolade for 12 consecutive years, and contributed 18 units to the Q3 total.
Commercial Aviation Expansion
The commercial aviation segment delivered 16 aircraft, with the E2 family accounting for 75% of deliveries.
A notable milestone included the first E2 delivery to LOT Polish Airlines through a lessor agreement. Virgin Australia’s firm order for eight E190-E2 aircraft further strengthened the commercial segment’s position.
Defense Sector Achievements
Embraer’s defense division marked significant progress with key deliveries and new contracts. The Hungarian Air Force received its first C-390 Millennium aircraft, while the Brazilian Air Force welcomed its seventh unit.
The division secured a major contract with the Netherlands and Austria for nine C-390 aircraft, announced at the Farnborough International Airshow.
Record-Breaking Backlog
The company’s total backlog reached US$22.7 billion, representing:
- 25% increase year-over-year
- 10% growth quarter-over-quarter
- Highest level in nine years
Defense & Security led the backlog growth with a US$1.5 billion increase, followed by Services & Support with a US$367 million rise. While Executive and Commercial Aviation saw slight decreases, their overall performance remained strong.
Segment-Specific Backlog Performance
- Commercial Aviation: US$11.1 billion
- Executive Aviation: US$4.4 billion
- Defense & Security: US$3.6 billion
Future Outlook
Embraer’s robust performance across all segments, particularly in defense and executive aviation, positions the company for continued growth. The slight decline in executive aviation backlog can be attributed to increased delivery rates and seasonal patterns rather than market weakness.
The significant boost in defense contracts, including new orders from European nations, suggests growing international recognition of Embraer’s military aircraft capabilities.
With strong delivery numbers and a healthy backlog, Embraer demonstrates resilience and adaptability in meeting diverse market demands across its business segments.
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