Strong overall backlog volume of US$ 21.1 billion (+13% QoQ) American Airlines placed a firm order for 90 E175 jets Commercial Aviation backlog rose US$2.3 billion (+26% QoQ) 1Q Executive Aviation deliveries were the highest of the last 8 years SÃO JOSÉ DOS CAMPOS, Brazil , April 19, 2024 /PRNewswire/ — Embraer (NYSE: ERJ; B3: EMBR3) delivered 25 jets in 1Q24, an increase of 67% compared to the 15 aircraft delivered in 1Q23. Executive Aviation showed robust delivery growth, soaring from 8 to 18 jets during the period. The number of deliveries was the highest 1Q of the last 8 years, and more than doubled YoY. Meanwhile, for Commercial Aviation, deliveries were flat YoY at 7 aircraft.
Deliveries by Segment
1Q23
1Q24
2024 Guidance
Executive Aviation
8
18
125-135
Phenom 100
2
1
Phenom 300
4
10
Light Jets
6
11
Praetor 500
–
3
Praetor 600
2
4
Medium Jets
2
7
Commercial Aviation
7
7
72-80
E195-E2
5
4
E175
2
3
Total
15
25
197-215
Embraer delivered 12% of the total number of aircraft implied by the mid-point of the current year guidance for both Executive and Commercial Aviation (25 out of 206). The company has developed, and it is currently implementing, a plan to mitigate its business seasonality. The Production Leveling plan main objective is to have a stable production pace throughout the calendar year in the near to medium-term future.
The company’s backlog increased US$2.4 billion or 13% sequentially to US$21.1 billion in 1Q24, compared to a total backlog of US$18.7 billion in 4Q23. The biggest increase happened in Commercial Aviation (US$2.3 billion or 26%) while the smallest one was in Defense & Security (-US$0.1 billion or –4%).
Backlog by Segment – US$bn
4Q23
1Q24
QoQ
Executive Aviation
4.3
4.6
7 %
Defense & Security
2.5
2.4
-4 %
Commercial Aviation
8.8
11.1
26 %
Services & Support
3.1
3.1
0 %
Total
18.7
21.1
13 %
Executive Aviation kept its sales momentum with sustained demand across its entire product portfolio and strong customer acceptance, in both retail and fleet markets. The number of deliveries increased 83% YoY in the light jets segment, and more than tripled in the medium jets one compared to 1Q23. Consequently, Executive Aviation ended with a US$4.6 billion backlog in 1Q24, for a US$ 300 million sequential increase.
In Defense & Security, the first C-390 Millennium of the Hungarian Air Force successfully completed its maiden flight. The aircraft is now undergoing a mission systems integration test campaign, ahead of its entry into service. Another important milestone in the quarter was the first Embraer Defense Day in the United States ; an event during which the C-390 Millennium and the A-29 Super Tucano were showcased to government authorities, military officials, prospects, and partners at our facilities in Melbourne, Florida . The C-390 selection by some countries in the EMEA and APAC regions has not yet been incorporated into the backlog, which represents a significant source of upside potential for the coming quarters. The Defense & Security backlog reached US$2.4 billion (-4% QoQ) in 1Q24.
Services & Support continues to be one of the main drivers of Embraer’s growth through a combination of operational excellence, customer experience, and innovative solutions. The business unit backlog finished the period sequentially flat at US$ 3.1 billion in 1Q24.
Commercial Aviation posted a US$11.1 billion backlog, or US$2.3 billion higher than in 4Q23 . The highlight of the quarter was the deal with American Airlines for 90 E175s, with purchase rights for another 43 additional jets, to meet domestic demand in the United States . Also, Embraer delivered one E195-E2 to Azorra, which will fly under the Royal Jordanian flag.
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SOURCE Embraer S.A.
