Embraer S.A. (NYSE: ERJ; B3: EMBR3), the Brazilian aerospace conglomerate with a market capitalization of $6.7 billion, announced today a contract for the sale of two C-390 Millennium multi-mission aircraft to an undisclosed customer. The deal includes a comprehensive package for training, support, and provision of spare parts. The company, which has delivered impressive year-to-date returns of 97%, continues to strengthen its position as a prominent player in the Aerospace & Defense industry, according to InvestingPro data.
The C-390 Millennium is designed to perform a variety of missions, such as troop and vehicle transportation, humanitarian missions, disaster response, and medical evacuation. This new order emphasizes the aircraft’s increasing global demand and its role as a next-generation military transport solution.
Bosco da Costa Jr, President and CEO of Embraer Defense & Security, expressed pride in the new customer’s decision, highlighting the C-390 Millennium’s blend of advanced technology, reliability, and operational efficiency. The aircraft, according to da Costa Jr, is revolutionizing military transport aviation.
The unnamed customer becomes the tenth nation to choose the C-390, joining a list that includes countries like Brazil, Portugal, Hungary, and others. Since its introduction with the Brazilian Air Force in 2019, the C-390 fleet has logged over 15,500 flight hours, boasting a mission capability rate of 93% and mission completion rate above 99%. This expansion aligns with Embraer’s strong financial health, earning a "GREAT" overall score from InvestingPro, supported by 17% revenue growth in the last twelve months.
Capable of carrying 26 tons of payload and reaching speeds of 470 knots, the C-390 can operate from diverse runways, including unpaved surfaces. The variant equipped for air-to-air refueling, designated the KC-390, has successfully demonstrated its capabilities in both tanker and receiver roles.
Embraer, a leading manufacturer of commercial jets up to 150 seats, has delivered over 9,000 aircraft since its inception in 1969. The company is recognized as Brazil’s main exporter of high value-added goods and operates a global network for service and support. This contract reaffirms Embraer’s position in the aerospace sector, based on a press release statement. With the stock trading near its 52-week high and showing strong momentum, investors can access detailed analysis and 12 additional ProTips through InvestingPro’s comprehensive research report, part of their coverage of 1,400+ top US equities.
In other recent news, Embraer, the prominent aerospace company, has seen several positive developments. TD Cowen raised its price target for Embraer shares from $47 to $50, maintaining a Buy rating due to an optimistic outlook for the company’s financial performance in the coming years. The firm cited strong performance across nearly all of Embraer’s segments and projected an adjusted earnings per share (EPS) growth exceeding 20% through the calendar years 2025 to 2026 and beyond.
Furthermore, Embraer secured an additional order for two E195-E2 jets from Luxair, following an initial 2023 agreement for four of the same model. This expansion of Luxair’s fleet indicates a commitment to growth while focusing on sustainability and passenger experience.
In another development, Embraer inked a contract with Portugal’s Ministry of National Defense for the supply of 12 A-29N Super Tucano aircraft, making Portugal the first country to acquire the NATO version of this advanced trainer and light attack aircraft.
Embraer reported significant growth in the third quarter of 2024, with substantial increases in revenue. Despite supply chain constraints, the company revised its financial guidance for the year, maintaining its 2024 revenue guidance at a midpoint of $6.2 billion and increasing its adjusted EBIT margin guidance to 9.5%. The company’s firm order backlog reached $22.7 billion, indicating strong future growth potential.
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