Embraer secures $7 billion deal with Flexjet for aircraft fleet

Today, Embraer S.A. (NYSE: ERJ), a prominent aircraft manufacturer and leading player in the Aerospace & Defense industry, announced a significant purchase agreement with Flexjet, a leader in fractional jet ownership. The deal, valued at up to $7 billion, includes a firm order of 182 aircraft with options for 30 more, marking the largest order in Flexjet’s 30-year history and the largest firm order for Embraer’s executive jets.

According to InvestingPro data, Embraer has demonstrated remarkable market performance with a 119% return over the past year, reflecting strong investor confidence in the company’s growth trajectory.

The agreement includes Embraer’s Praetor 600, Praetor 500, and the improved Phenom 300E models, as well as a comprehensive suite of services and support. This order reaffirms Flexjet’s longstanding relationship with Embraer, which began in 2003 and has since seen Flexjet become the launch customer for several Embraer models, including the Legacy Executive, Phenom 300, Legacy 450, and the Praetor jets.

Michael Amalfitano, President & CEO of Embraer Executive Jets, expressed delight at Flexjet’s renewed commitment and the opportunity to continue providing their market-leading Phenom and Praetor jets to Flexjet’s customers. Michael Silvestro, CEO of Flexjet, highlighted the performance of the Praetor jets in their fleet and their excitement for the continued growth with this new order.

Flexjet’s fleet expansion will nearly double in size over the next five years, bolstered by this historic order. The Phenom 300 has been the most delivered light business jet globally for 12 consecutive years, a testament to Embraer’s success in the executive jet market.

This strategic partnership is set to strengthen with the introduction of the new generation Phenom 300E into Flexjet’s global portfolio, enhancing their offering with advanced technology and performance capabilities. The deal comes at a time when Embraer shows robust financial health, with InvestingPro analysis indicating strong liquidity and moderate debt levels. The company’s revenue stands at $5.77 billion for the last twelve months, with a healthy gross profit margin of 17.5%.

For investors seeking deeper insights, InvestingPro offers comprehensive analysis with additional ProTips and detailed financial metrics in their Pro Research Report, available for over 1,400 US stocks including ERJ. The information for this article is based on a press release statement and InvestingPro data.

In other recent news, Embraer has been making significant strides in the aviation industry. The company recently inked a record $7 billion deal with Flexjet, marking the largest order in the history of both companies. This agreement involves a firm order for 182 aircraft, options for an additional 30 jets, and an enhanced suite of services and support.

Moreover, the Uruguayan Air Force expanded its fleet with five A-29 Super Tucano aircraft from Embraer, enhancing its operational capabilities. Embraer also reported an increase in aircraft deliveries in 2024, with a total of 206 aircraft delivered, a 14% rise compared to the previous year.

In addition to the above, Embraer secured the sale of four A-29 Super Tucano aircraft to an undisclosed African nation, marking the country as the sixth African operator of the model. The company also announced the sale of two C-390 Millennium multi-mission aircraft to an undisclosed customer.

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