Embraer Rides Engine Woes to Turnaround Success

Embraer's turnaround story began after the tough Covid-19 years and the breakup of its joint venture with Boeing. The company focused on driving sales, deliveries, and efficiency across its divisions: Commercial Aircraft, Executive Jets, Defense, and Services.

The E-Jet E2 had slower sales success than the Airbus A220 in the post-pandemic market, but Embraer's backlog was sufficient to meet capacity. However, there were question marks about the pipeline of jets for delivery in the coming years.

In 2024, E2 sales began to pick up, partly due to engine problems affecting the A220. Although both aircraft share the Pratt & Whitney PW1500/1900 GTF family, the E2's lighter design put less stress on the engines.

All four divisions showed growth: Commercial Aircraft saw improved E2 sales, Executive Jets performed well in the private aviation market, Defense secured multiple country wins for its KC-390, and Services delivered strong margins. As a result, Embraer regained momentum after several challenging years.