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Embraer Soars with Record Executive Aviation Deliveries and Significant Backlog Growth

In a remarkable demonstration of industrial achievement, Embraer S.A. has unveiled its impressive performance for the first quarter of 2024, with a staggering 67% increase in jet deliveries compared to the previous year. This performance denotes not only the highest quarter for Executive Aviation deliveries in the past eight years but also points to a sustained demand across both executive and commercial sectors of the aviation market. The backdrop for these successes is São José dos Campos, Brazil, where Embraer's roots run deep and where the latest data has been publicized.

Unprecedented Growth in Deliveries

The detailed results, released on April 19, 2024, disclose that Embraer delivered a total of 25 jets in the initial quarter of 2024. This surge is exemplified best by the Executive Aviation sector, whose delivery tally escalated from 8 to 18 jets, showcasing a remarkable pivot in the industry. The result doubles the previous year's output for the same period. Meanwhile, Commercial Aviation reported a consistent delivery of 7 aircraft year-over-year.

Indicative of the company’s resilience and adaptability, Embraer is actively rolling out initiatives such as the Production Leveling plan to tackle the inherent seasonality of its business. The primary goal of this strategy is to establish a balanced production calendar, ensuring steady output across the year, both in the short and the middle term.

In terms of overall market presence, the manufacturer delivered 25 out of 206 forecasted aircraft for the current year, translating to a 12% delivery rate by the mid-point of yearly guidance for Executive and Commercial Aviation sectors combined.

A Flourishing Backlog

The financial health of the company has also surged upward dramatically, with the backlog swelling by $2.4 billion, a notable 13% quarter-over-quarter increase, to reach a robust $21.1 billion in the first quarter of 2024. The most substantial growth has been observed in Commercial Aviation, with an increase of $2.3 billion (26% QoQ), while other sectors also reporting gains albeit with lesser magnitude.

The tables below delineate the segment-wise delivery and backlog status of Embraer's varied aviation divisions:

Deliveries by Segment

| Segment | 1Q23 | 1Q24 | 2024 Guidance | |---|---|---|---| | Executive Aviation | 8 | 18 | 125-135 | | Commercial Aviation | 7 | 7 | 72-80 | | Total | 15 | 25 | 197-215 |

Backlog by Segment - US$bn

| Segment | 4Q23 | 1Q24 | QoQ change | |---|---|---|---| | 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: Leading the Pack

Executive Aviation has seamlessly maintained its velocity in retail as well as fleet markets, championed by a demand surge across the entire product range and strong customer acceptance. Light jet deliveries have skyrocketed by 83% year-over-year, while medium jet deliveries have seen an exponential threefold increase compared to the first quarter of last year. The outcome is a solid $4.6 billion backlog at the end of the first quarter, demonstrating a $300 million sequential uptick.

Defense & Security: Strengthening Global Footprint

In the Defense & Security segment, a notable highlight was the first C-390 Millennium aircraft's maiden voyage, destined for the Hungarian Air Force. This aircraft is a testament to Embraer's technological prowess as it readies for a series of integration tests before service introduction. Significantly, the Defense & Security backlog stood at $2.4 billion at the quarter's conclusion, showing a 4% dip from the last quarter.

The company also achieved a unique milestone with the hosting of the inaugural Embraer Defense Day in the United States. This event at the Melbourne, Florida facility showcased the C-390 Millennium and the A-29 Super Tucano aircraft to an audience of government and military officials, partners, and potential customers.

Moreover, Embraer anticipates potential backlog enhancements in forthcoming quarters from selections already made by various countries across the EMEA and APAC regions, although these are not yet reflected in the current figures.

Services & Support: Sustaining Core Growth

The Services & Support sector has continued to underpin Embraer's ongoing expansion, fusing a commitment to operational excellence with an emphasis on the customer experience and innovative solutions. The reported backlog for this sector remained stable, maintaining a formidable $3.1 billion in the first quarter of 2024.

Commercial Aviation: Robust Market Connections

The Commercial Aviation sector, having clinched a monumental deal of 90 E175 jets with American Airlines, also staked claim to additional purchase rights for 43 more aircraft. This strategic partnership is a move to address the surging domestic aviation market in the United States. Besides, it was noteworthy that Embraer made an E195-E2 jet delivery to Azorra, set to serve under the Royal Jordanian flag, further expanding its global reach.

Ultimately, the total backlog for Commercial Aviation by the first quarter stood at a sturdy $11.1 billion, showcasing an additional $2.3 billion compared to the fourth quarter of 2023.

Embraer's recent achievements not only delineate the firm's capability to adapt and innovate in a highly competitive industry but also its enduring commitment to customer satisfaction and technological advancements. The burgeoning backlog, along with a significant increase in aircraft deliveries, mirrors the firm’s enhanced proficiency and its resolute grasp on various aviation sectors. These advancements present a lucrative future for the Brazilian aerospace conglomerate, as it continues to steer forward with ambition and strategic insight into the year.

About Embraer S.A.

Founded 50 years ago, Embraer has established itself as a global aviation leader, fostering excellence through its diverse product lines and services. The company has carved a niche in manufacturing commercial, military, executive, and agricultural aircraft and has positioned itself as a key player in aerospace technology advancements.

To view Embraer's comprehensive performance review and visual representation of the data, please refer to the chart of quarterly deliveries at Embraer's Quarterly Deliveries Chart.

For more details regarding Embraer S.A. and its various endeavors within the aviation industry, visit Embraer's Official Website.

Embraer S.A.'s strong quarterly results and promising plans for future growth echo throughout the global aerospace community, reflecting the potential and drive of one of Brazil's most innovative companies. With a solid backlog to propel its operations ahead, exemplary aircraft deliveries marking historical achievements, and forward-thinking strategies aimed at market dominance, Embraer stands poised to continue its ascent in the ever-evolving skies of the aviation world.

São José dos Campos, Brazil – a hub of aviation ingenuity where Embraer's journey continues to reach new heights.

SOURCES: Embraer S.A.

Please note that all financial figures are in U.S. dollars and have been sourced directly from Embraer's reports.

(This article is based on information provided by PRNewswire.)

The second quarter of 2024 awaits with anticipation as industry analysts and aviation enthusiasts keenly watch Embraer's next moves. As the company gears up to match, and possibly exceed, its exemplary performance from the first quarter, its grip on the skies looks evermore tenacious.

It’s clear that with every jet that rolls out and every new partnership that is forged, Embraer isn't just making aircraft; it's crafting the future of flight one innovative design at a time.