Embraer finished off the second quarter with a record backlog. Among the major business jet manufacturers, the Brazilian airframer is unique in that it plays in both the commercial and private aviation markets.
On the commercial side, it reported an eight-year-record backlog of $13.1 billion for its E-Jet family. Meanwhile, its executive aviation division—with the highest book-to-bill ratio in the industry—posted a backlog of $7.4 billion at the end of the quarter, representing a 62% year-over-year (YOY) increase but a slight decrease from the first quarter.
In the second quarter, Embraer delivered 38 business jets, a 41% increase over the 27 handed over during the same period a year ago, and 8% higher than the OEM’s five-year average for the quarter.
Embraer's services and support unit increased its backlog by 55% YOY, reaching $4.9 billion. A highlight in the quarter was the announcement that it will offer the Gogo Galileo HDX connectivity solution on the Phenom 300 via a supplemental type certificate developed in partnership with Gogo. FAA approval for this is expected by October.
Meanwhile, Embraer noted that it is the main exporter of high-value-added goods in Brazil. On this note, the company will discuss the threat of possible U.S. tariffs during its second-quarter results call on August 5.