1. Embraer reported a record backlog of $26.4 billion in Q1 2025. 2. 30 aircraft were delivered, a 20% increase compared to Q1 2024. 3. Executive Aviation backlog reached $7.6 billion, up 3% from Q4 2024. 4. Commercial Aviation backlog decreased by 2% due to supply chain issues. 5. Defense & Security backlog held steady at $4.2 billion in Q1 2025.
The record backlog and increased deliveries usually indicate strong future revenue potential. Historically, significant backlog increases correlate with higher stock valuations in aerospace firms.
The article highlights crucial operational metrics that are directly tied to ERJ's market performance. Strong backlog and delivery numbers provide confidence in near-term revenue growth.
Immediate sales growth is expected from the current backlog and deliveries. However, ongoing supply chain issues could impact future performance beyond the short term.
Embraer (NYSE: ERJ / B3: EMBR3), a global leader in the aerospace industry, reported a US$26.4 billion backlog in the first quarter of 2025. The result surpassed the all-time historical high set in the previous quarter.
| Segment | 1Q25 | 4Q24 | qoq | 1Q24 | yoy |
|---|---|---|---|---|---|
| Commercial Aviation | 10.0 | 10.2 | -2 % | 11.1 | -10 % |
| Executive Jets | 7.6 | 7.4 | 3 % | 4.6 | 66 % |
| Defense & Security | 4.2 | 4.2 | 0 % | 2.4 | 73 % |
| Services & Support | 4.6 | 4.6 | 1 % | 3.1 | 49 % |
| Total | 26.4 | 26.3 | 0 % | 21.1 | 25 % |
Embraer delivered 30 aircraft in 1Q25. The result was 20% higher than in the first quarter of last year (1Q24), when 25 aircraft were delivered. More importantly, 1Q25 deliveries corresponded to 13% of the midpoint (231 aircraft) of the company's full year guidance (between 222 and 240 in 2025) for the combined Executive and Commercial Aviation business units versus an 11% 5-year historical average for the period.
| Segment | 1Q25 | 4Q24 | 1Q24 | 2025 Guidance |
|---|---|---|---|---|
| Executive Aviation | 23 | 44 | 18 | 145-155 |
| Commercial Aviation | 7 | 31 | 7 | 77-85 |
| Total Commercial Av. & Executive Av. | 30 | 75 | 25 | 222-240* |
*Excludes KC-390 Millennium and A-29 Super Tucano deliveries
In Commercial Aviation, the backlog totaled US$10.0 billion in 1Q25 – 2% lower quarter over quarter (qoq). ANA Holdings Inc. has placed an order for 15 aircraft E190-E2 with options for 5 additional jets. This order will likely be included in the second half of 2025, when the final contract is signed.
In 1Q25, the business unit delivered 7 new aircraft and 9% of the midpoint (81 aircraft) of the company's full year guidance (between 77 and 85). The performance of the division was slightly below the 12% 1Q average for the past 5 years, and it reflected ongoing supply chain challenges. We should highlight we were unable to deliver 2 additional aircraft during the quarter because of commercial issues. The models delivered during the period were the E175, to American Airlines (2), Republic Airlines (1) and Horizon Air (1), and the E195-E2, to Porter (1), Aercap (1) and Azorra (1). Looking forward, we expect our production leveling efforts to produce more tangible results in 2Q25, the 2H of the year, and from the start of 2026.
| Aircraft Type | Firm Orders | Deliveries | Firm Order Backlog |
|---|---|---|---|
| E175 | 943 | 783 | 160 |
| E195-E2 | 282 | 131 | 151 |
| E190-E2 | 52 | 27 | 25 |
| Total | 1,277 | 941 | 336 |
| Customer | Firm Orders | Delivered | Firm Order Backlog |
|---|---|---|---|
| EMBRAER 175 | 943 | 783 | 160 |
| American Airlines (USA) | 204 | 114 | 90 |
| Republic Airlines (USA) | 187 | 147 | 40 |
| Total | 1,277 | 941 | 336 |
A global aerospace company headquartered in Brazil, Embraer has businesses in Commercial and Executive aviation, Defense and Security, and Agricultural Aviation. The company designs, develops, manufactures, and markets aircraft and systems, providing Services and Support to customers after-sales.
Since it was founded in 1969, Embraer has delivered more than 9,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 150 million passengers a year.
Embraer is the leading manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service, and parts distribution centers, among other activities, across the Americas, Africa, Asia, and Europe.
SOURCE Embraer S.A.