Embraer records largest order backlog in the last 7 years and 67% increase in deliveries in 1Q24

Embraer (NYSE: ERJ; B3: EMBR3) delivered 25 jets in 1Q24, an increase of 67% compared to 1Q23, when 15 aircraft were registered. Executive Aviation showed robust growth in deliveries, jumping from 8 to 18 jets during the period. This number of deliveries represented the unit's best first quarter in eight years, and more than doubled compared to the same period the previous year. In Commercial Aviation, in turn, deliveries remained stable at 7 aircraft.

Embraer orders

Embraer delivered 12% of the total aircraft forecast at the midpoint of the guidance for 2024, both for Executive Aviation and Commercial Aviation (25 out of 206). The company has developed and is implementing a plan to mitigate seasonality in its business. The plan, called Production Leveling, aims to consolidate a constant pace of production throughout the year, in the medium term.

Embraer orders

The company's order backlog increased by US$2,4 billion, reaching US$21,1 billion in 1Q24. This represents an increase of 13% compared to the US$18,7 billion in 4Q23. The largest increase occurred in Commercial Aviation (US$2,3 billion or 26%), while the smallest was in Defense & Security (-US$0,1 billion or -4%).

Embraer orders

A Executive Aviation maintained strong sales performance with high demand across its portfolio and great acceptance from both retail customers and fleet operators. The number of deliveries increased 83% year-on-year in the light jet segment and more than tripled in the midsize jet segment compared to 1Q23. Thus, Executive Aviation ended the period with an order backlog of US$4,6 billion in 1Q24, an increase of US$300 million compared to the previous quarter.

Em Defense & Security, The Hungarian Air Force's first C-390 Millennium has successfully completed its maiden flight. The aircraft is now undergoing a mission systems integration test campaign prior to 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 A-29 Super Tucano were presented to government officials, military officials, potential customers and partners, at our facilities in Melbourne, Florida. The selection of the C-390 by countries in the EMEA and Asia-Pacific regions has not yet been incorporated into the order book, which represents a significant source of potential growth for the coming quarters. A Defense & Security order backlog was US$2,4 billion (-4% quarterly) in 1Q24.

The Services & Support unit continues to be one of the main drivers Embraer's growth through a combination of operational excellence, customer experience and innovative solutions. The Embraer Services & Support order backlog ended the period at US$3,1 billion in 1Q24, stable compared to the previous quarter.

Commercial Aviation registered a order backlog of US$ 11,1 billion, or US$ 2,3 billion more compared to 4Q23.The highlight of the quarter was the agreement with American Airlines for 90 E175s, with purchase rights for an additional 43 jets. The airline's order aims to meet domestic demand in the United States. Additionally, Embraer delivered an E195-E2 to Azorra, which will fly under the Royal Jordanian flag.