Embraer (NYSE: ERJ) kicked off 2024 with a bang, delivering 25 jets in the first quarter (Q1). This represents a significant 67% increase compared to the 15 aircraft delivered in Q1 2023.
This is actually the highest number of Q1 deliveries Embraer has seen in the past eight years, more than doubling year-on-year.
Executive Aviation Takes Off
The growth was fueled by a surge in Executive Aviation deliveries, which skyrocketed from 8 to 18 jets during the period.
This segment experienced the strongest Q1 performance in eight years. Light jet deliveries increased by 83% year-over-year. In addition, medium jet deliveries more than tripled compared to Q1 2023.
This robust performance resulted in a US$4.6 billion backlog for Executive Aviation in Q1, a sequential increase of US$300 million.
Deliveries on Track, Production Smoothing Out
Embraer remains on track to meet its full-year guidance, having delivered 12% of the total number of aircraft projected for both Executive and Commercial Aviation in Q1 (25 out of 206).
Additionally, the company is actively implementing its Production Leveling plan. This will achieve a more stable production pace throughout the year, reducing business seasonality in the near future.
Backlog on the Rise Across Sectors
Embraer’s overall backlog grew by US$2.4 billion (13%) to a healthy US$21.1 billion in Q1, compared to US$18.7 billion in Q4 2023.
The most significant increase came from Commercial Aviation (+US$2.3 billion or 26%), while Defense & Security saw a slight decrease (-US$0.1 billion or -4%).
Commercial Aviation Gains Momentum
Commercial Aviation also witnessed positive developments. The backlog for this segment climbed to US$11.1 billion, a US$2.3 billion increase from the previous quarter.
The highlight was a major deal with American Airlines for 90 E175 jets, with additional purchase rights for 43 more.
This acquisition was made to support strong domestic demand in the United States. Embraer also delivered an E195-E2 to Azorra, which will operate under the Royal Jordanian flag.
Defense & Security Prepares for Growth
Despite a slight backlog decrease in Q1, Defense & Security remains a key area for Embraer. The successful maiden flight of the first C-390 Millennium for the Hungarian Air Force signifies continued progress.
The C-390’s selection by several countries in the EMEA and APAC regions holds significant potential for future backlog growth.
Additionally, the first Embraer Defense Day in the United States showcased the C-390 Millennium and A-29 Super Tucano, generating interest from potential clients.
Services & Support: A Pillar of Growth
Embraer’s Services & Support segment continues to be a driving force behind the company’s growth.
This business unit prioritizes operational excellence, customer experience, and innovative solutions, maintaining a stable backlog of US$3.1 billion in Q1.
Looking Ahead
Embraer’s strong Q1 performance demonstrates a positive trajectory for the year. The manufacturer has seen a growing backlog across all sectors, coupled with successful aircraft deliveries.
Taken together with its focus on production stability, Embraer looks well-positioned for continued success in 2024.
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