PR Newswire
- 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 | 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.
SOURCE Embraer S.A.