Embraer Reports Record $31.6 Billion Backlog
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Record Backlog: Embraer reported a firm order backlog of $31.6 billion at the end of Q4, representing a 20% increase year-over-year, indicating strong demand and growth potential in the aerospace market.
- Significant Delivery Increase: The company delivered 91 aircraft in Q4, a 21% rise from the previous year, which not only boosts market share but also strengthens its position in the competitive aerospace manufacturing sector.
- Strong Stock Performance: Embraer's stock advanced 1.1% in extended trading to $80.75, with a remarkable 98% increase over the past year, reflecting investor confidence and market recognition of the company's growth prospects.
- Future Delivery Targets: Embraer aims to return to triple-digit jet deliveries as demand surges, positioning the company to further solidify its leadership in the global aerospace market.
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Analyst Views on EMBJ
Wall Street analysts forecast EMBJ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for EMBJ is 72.20 USD with a low forecast of 67.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 76.480
Low
67.00
Averages
72.20
High
80.00
Current: 76.480
Low
67.00
Averages
72.20
High
80.00
About EMBJ
Embraer SA is a Brazil-based jets manufacturer. The Company produces aircraft for commercial and executive aviation, as well as for defense and security purposes and related services. Its segments include Commercial aviation business, which involves the development, production and sale of commercial jets, and rendering of support services, particularly in the regional aviation segment and aircraft leases; Executive Jet business, which markets its executive jets to companies, including fractional ownership companies, charter and air-taxi companies, high-net-worth individuals and to flight academies; Defense and Security Business segment, which conceives, designs, develops, manufactures and supports a range of integrated solutions for the defense and security market; and Other Related Businesses segment, which provides fuel systems, structural parts, and mechanical and hydraulic systems to Sikorsky Aircraft Corporation for its production of helicopters.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Embraer Reports Record $31.6 Billion Backlog
- Record Backlog: Embraer reported a firm order backlog of $31.6 billion at the end of Q4, representing a 20% increase year-over-year, indicating strong demand and growth potential in the aerospace market.
- Significant Delivery Increase: The company delivered 91 aircraft in Q4, a 21% rise from the previous year, which not only boosts market share but also strengthens its position in the competitive aerospace manufacturing sector.
- Strong Stock Performance: Embraer's stock advanced 1.1% in extended trading to $80.75, with a remarkable 98% increase over the past year, reflecting investor confidence and market recognition of the company's growth prospects.
- Future Delivery Targets: Embraer aims to return to triple-digit jet deliveries as demand surges, positioning the company to further solidify its leadership in the global aerospace market.
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Embraer Aims to Restore Jet Deliveries to Pre-Pandemic Levels
- Delivery Target Increase: Brazilian aircraft manufacturer Embraer aims to lift annual commercial jet deliveries to approximately 100 aircraft within the next two years, representing a nearly 30% increase from last year to meet growing demand for regional jets.
- Production Restoration Priority: Embraer's commercial aviation leadership emphasizes that the immediate focus is on restoring output to historical norms, although the current order book and recent sales momentum suggest that production may need to exceed initial targets.
- Surge in E2 Orders: Despite losing a high-profile competition in Poland to Airbus, Embraer saw net orders for its E2 regional jet family reach 131 aircraft last year, significantly surpassing orders for Airbus's A220, with notable customers including All Nippon Airways and LATAM.
- Market Competition Dynamics: While Embraer works to restore deliveries, it faces competitive pressure from Airbus; however, its strong performance in the regional jet market indicates significant potential in the aviation industry's recovery.
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