$EMBJ

Embraer stock fell 3.8% in pre-market trading following President Lula's election victory in Brazil, which triggered a selloff in Brazilian-exposed assets. Analysts also adjusted ratings, though not to sell. Embraer's Q3 backlog grew 14% YoY to $35.7B, with Executive Aviation at a record $8.2B. Earnings are due November 10.

Embraer's order backlog reached a record $35.7B in Q3 2026, up 3% from Q2 and 14% year-over-year. The backlog includes 72 firm E2-family airliner orders, 8.2B in business jets, and 6.1B in military aircraft. Deliveries totaled 175 aircraft in nine months, ahead of the company's 2026 target. Embraer trades as EMBJ on the NYSE and EMBJ3 on the B3 exchange.

Embraer S.A. (EMBJ) has outperformed the aerospace sector, with a 9% year-to-date gain, driven by strong operational momentum and rising aircraft deliveries. The company reported a 23% revenue increase to $2.24 billion in Q2, with net income rising to $212.6 million. Embraer trades at a P/E of 30x, above the sector median, but has a record backlog of $34.5 billion. Analysts from Bank of America and JPMorgan have raised price targets, citing strong growth prospects.

Japan Airlines ordered up to 26 Embraer E190-E2 jets for its regional unit, J-Air, including 16 firm purchases and 10 options. Deliveries start in 2029. This follows ANA's similar order for 23 E2 jets. The E2 family competes with Airbus' A220 in the regional aircraft market.

Mahindra & Mahindra (M&M) will sell a 51% stake in its aerospace subsidiary, Novavaayu Aerospace, to Embraer for approximately INR 5,100 crore. The deal is part of a broader partnership to position Embraer's C-390 Millennium aircraft for the Indian Air Force's requirements. Novavaayu is a subsidiary of M&M's defense arm, Mahindra Defence Systems Ltd.

Embraer and Lockheed Martin are competing for a $10.5B Indian Air Force contract to supply 60 medium transport aircraft. Embraer's C-390 Millennium and Lockheed's C-130J Super Hercules are the contenders. India requires 40% domestic content, with both companies partnering with local firms for production. Proposals are due in December, with a focus on high-altitude operations and defense manufacturing.

Delta Air Lines and SkyWest Airlines have deployed the Embraer E175 on flights to Aspen after a software update to the GE CF34-8E engines increased thrust by 1% to 3%, allowing full passenger loads. The update, combined with recalibrated flight controls, meets FAA climb-gradient rules. SkyWest plans to operate 25 modified E175s by 2026, replacing older CRJ700 aircraft and improving route profitability with more seats and better weather navigation.

Embraer reported a GPS system instability affecting its E2 aircraft family, leading to groundings and operational adjustments by carriers like Azul and KLM. The company stated no safety impact, but a permanent fix is pending. Honeywell, whose equipment is involved, is investigating. About 219 E2s are in service worldwide, with major operators including Azul, KLM, and Porter Airlines.

Japan Airlines is considering an order of about 20 regional jets, favoring Embraer's E2 over Airbus's A220, with a decision expected by October. The airline has not finalized its choice, and circumstances may change. According to Bloomberg, the decision is based on evaluations of both aircraft.

Embraer secured its first U.S. order for E2 jets, with Avelo Airlines purchasing 50 planes valued at $4.4 billion. Avelo, a startup carrier, plans to use the jets to modernize its fleet and expand operations, with deliveries starting in 2027. Embraer's E2 jets are known for their efficiency and seating configuration, targeting smaller cities and shorter routes.