Sweden secures deal for Embraer C-390 military aircraft

Published 01/04/2025, 16:38
Sweden secures deal for Embraer C-390 military aircraft

RIO DE JANEIRO - Sweden has finalized a deal to purchase four C-390 Millennium multi-mission aircraft from Embraer, the Brazilian aerospace conglomerate. The agreement, announced at LAAD Defence & Security 2025, aligns Sweden with the Netherlands and Austria as part of the C-390 program.

Peter Sandwall, State Secretary to Sweden’s Minister for Defence, emphasized the C-390’s advanced capabilities in challenging environments, indicating a significant upgrade for Sweden’s defense operations. Embraer’s president and CEO, Bosco da Costa Junior, assured that the C-390 would enhance the Swedish Air Force’s operational capabilities and benefit from European synergies in interoperability and support. The company’s strong execution is reflected in its financial performance, with revenue growth of 35.67% and maintaining a healthy financial position, as indicated by its "GOOD" overall health score from InvestingPro.

The C-390 Millennium is recognized by its operators for its versatility, reliability, and cost-effectiveness. It is capable of transporting a payload of 26 tons at speeds of 470 knots, performing a wide array of missions, including cargo and troop transport, medical evacuation, and humanitarian efforts. The aircraft, which can operate on various runway conditions, has also shown a high mission capability rate of 93% and completion rates above 99%.

With Sweden’s commitment, the C-390 has now been selected or acquired by eight countries, demonstrating its growing presence in the global military transport market. The aircraft’s multi-mission capability and NATO interoperability are particularly noted as key factors in its selection.

Embraer, established in 1969, has a significant footprint in the aerospace industry, delivering over 9,000 aircraft worldwide and serving commercial, executive, defense, and agricultural sectors. The company’s network extends globally, providing comprehensive after-sales services and support.

This strategic acquisition by Sweden, based on a press release statement, marks a noteworthy development in the enhancement of its military transport fleet and the continued expansion of Embraer’s international defense market presence. With net income of $310 million in the last twelve months, Embraer continues to demonstrate strong operational execution. For deeper insights into Embraer’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which offer expert analysis on over 1,400 US-listed companies.

In other recent news, Embraer has announced several significant developments. The Brazilian aircraft manufacturer reported an anticipated 18% rise in aircraft deliveries by 2025, projecting up to 240 commercial and executive jets to meet increasing demand. For the current year, Embraer expects to deliver between 77 and 85 commercial aircraft and 145 to 155 business jets, reflecting growth from the previous year’s figures. Additionally, Embraer secured a substantial order from Japan’s ANA Holdings Inc. for 15 E190-E2 jets, with options for five more, marking the first order of these next-generation jets from a Japanese airline.

In a historic deal, Embraer entered a purchase agreement with Flexjet for a fleet of business jets valued at up to $7 billion, the largest order in Flexjet’s history. The agreement includes 182 firm orders with options for 30 additional aircraft, featuring models such as the Praetor 600, Praetor 500, and Phenom 300E. Wolfe Research recently downgraded Embraer’s stock rating from Outperform to Peer Perform, citing concerns over potential tariff impacts despite the company’s strong market performance. These recent developments highlight Embraer’s strategic moves in expanding its global presence and addressing evolving market demands.

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