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Embraer Reports Record $29.7B Backlog in Q2 2025 Boosting Aerospace Growth

Embraer achieves a record $29.7B backlog in Q2 2025 with strong commercial, executive, and defense orders driving growth in aerospace markets.

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Photo: Reuters

Embraer‘s Record Backlog: Strategic Growth Amidst Aerospace Industry Dynamics

Brazilian aerospace manufacturer Embraer closed the second quarter of 2025 with a record-breaking firm order backlog of $29.7 billion, marking a 40% increase compared to the same period in the previous year. This milestone underscores Embraer’s robust performance across all business segments,Commercial Aviation, Executive Jets, Defense & Security, and Services & Support,amid a global aerospace environment still recovering from supply chain disruptions and shifting market dynamics.

The surge in backlog comes alongside a 30% year-over-year rise in aircraft deliveries, totaling 61 units in Q2 2025. These figures reflect not only an uptick in market demand but also Embraer’s operational resilience and strategic agility. With orders from major airlines such as SAS and SkyWest, and increased demand for executive and defense aircraft, Embraer is positioning itself as a key player in the sub-150-seat aircraft segment.

Historical Evolution of Embraer’s Market Position

Founded in 1969 by the Brazilian government, Embraer began as a manufacturer of military and agricultural aircraft. Its transformation into a global aerospace competitor began in earnest following its privatization in 1994. That shift enabled greater capital investment and innovation, leading to the development of regional jets that would eventually define its commercial aviation success.

Key product milestones include the ERJ 145 family launched in 1999 and the E-Jet series introduced in 2004. These aircraft filled a critical niche in the 70–130 seat market, an area underserved by larger manufacturers like Boeing and Airbus. Embraer’s focus on fuel efficiency and flexible operations allowed it to gain a foothold in regional aviation markets globally.

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Although a proposed joint venture with Boeing was canceled in 2020, Embraer has since doubled down on its E2 series and diversified its portfolio. This includes investments in executive aviation, defense platforms like the C-390 Millennium, and aftermarket services, all of which contribute to its current record backlog.

Q2 2025 Performance Metrics and Business Segment Analysis

Commercial Aviation Division

The Commercial Aviation segment posted a backlog of $13.1 billion, its highest in eight years. This growth was driven by strong demand for the E175 and the next-generation E195-E2. The E175, in particular, reached a milestone of 1,000 units sold, solidifying its role as a cornerstone of regional aviation in the United States. SkyWest’s recent order for 60 E175s further validates the model’s enduring appeal.

In terms of deliveries, nine E195-E2s were handed over in Q2 2025 to clients including Aercap and Mexicana. These aircraft are celebrated for their 29% improvement in fuel efficiency over previous generations, making them attractive to airlines seeking to reduce operating costs and emissions.

The division’s book-to-bill ratio of 1.8 over the past 12 months indicates sustained demand and effective production alignment, a critical factor in maintaining financial stability and customer satisfaction.

“The E195-E2 is not just efficient; it’s built for the future. Its compatibility with 100% sustainable aviation fuel makes it a game-changer.”

, Arjan Meijer, CEO, Embraer Commercial Aviation

Executive Aviation Division

Executive Aviation saw its backlog climb to $7.4 billion, a 62% year-over-year increase. The division delivered 38 jets in Q2 2025, up 41% from the previous year. This growth is largely attributed to continued demand for light and midsize jets, particularly the Phenom 300, which remains the world’s best-selling light jet for the 13th consecutive year.

Flexjet’s substantial order for 182 aircraft, including the Phenom 300E and Praetor 500/600, exemplifies the long-term confidence in Embraer’s executive offerings. The increase in private travel post-pandemic has also played a role in bolstering this segment.

Embraer holds approximately 30% of the global market share in the light jet category, underscoring its strong competitive position. This segment continues to benefit from shifting travel preferences and increased demand for point-to-point connectivity.

Defense & Security Division

The Defense & Security segment doubled its backlog year-over-year to $4.3 billion, driven by international contracts for the C-390 Millennium transport aircraft. Lithuania recently selected the C-390 for its air force, while Portugal added a sixth KC-390 unit to its fleet. These orders reflect growing NATO interest in Embraer’s military platforms.

In addition, Paraguay received four A-29 Super Tucano aircraft during the quarter. Other potential contracts with countries like Sweden, Slovakia, and Panama remain under negotiation, offering future upside for this division.

The C-390’s multi-mission capability and competitive operating costs make it a viable alternative to legacy platforms, positioning Embraer to expand its defense footprint globally.

Services & Support Division

Services & Support reached a record backlog of $4.9 billion, reflecting 55% year-over-year growth. This segment is increasingly vital as airlines and operators seek reliable maintenance and training solutions. Recent developments include a new maintenance facility in Texas for CommuteAir and a passenger-to-freighter conversion program with Regional One.

Embraer has also expanded its training capabilities, launching an E2 simulator in Madrid in partnership with CAE. These services not only enhance customer experience but also create recurring revenue streams, contributing to long-term financial stability.

Pool programs, such as the one signed with Virgin Australia, further illustrate Embraer’s commitment to supporting its global fleet through comprehensive aftermarket solutions.

Strategic Orders and Milestones

One of the most significant developments in Q2 2025 was Scandinavian Airlines’ (SAS) order for 45 E195-E2 jets, valued at approximately $4 billion. The deal includes options for 10 additional units and represents Embraer’s largest direct order since 1996. SAS plans to use the aircraft to expand its hub operations in Copenhagen while reducing emissions through improved fuel efficiency.

This order is particularly noteworthy given recent market shifts, such as LOT Polish Airlines opting for Airbus. SAS’s commitment signals renewed confidence in Embraer’s commercial offerings, especially in the European market.

In North America, SkyWest’s order for 60 E175s and continued deliveries to Republic Airways and Horizon Air reinforce Embraer’s dominance in the regional jet segment. These contracts are critical to sustaining production volumes and maintaining a healthy supply chain.

Industry Context and Competitive Landscape

Embraer has managed to keep supply chain delays to just one to two months, significantly lower than the year-long delays reported by Boeing and Airbus. CFO Antonio Carlos Garcia attributes this to a disciplined approach to order intake and production planning.

The global regional aircraft market is currently experiencing a shortage, with up to 25% of the fleet inactive due to maintenance issues. Only 3% of stored aircraft are considered market-ready, creating a favorable environment for new aircraft deliveries.

Embraer’s 2025 Market Outlook projects demand for 10,500 sub-150-seat aircraft through 2044, a market valued at $680 billion. The Asia-Pacific region is expected to account for 17.2% of these deliveries, highlighting geographic growth opportunities for the E2 family.

Conclusion

Embraer’s record-breaking Q2 2025 backlog demonstrates the effectiveness of its diversified strategy across commercial, executive, defense, and service segments. The company’s ability to secure major orders while navigating supply chain challenges reflects operational strength and market alignment.

Looking ahead, Embraer is well-positioned to capitalize on trends such as sustainable aviation, regional fleet renewal, and defense modernization. Continued execution on existing contracts and expansion into high-growth markets will be key to sustaining momentum and delivering shareholder value.

FAQ

What is Embraer’s current backlog?
As of Q2 2025, Embraer’s firm order backlog stands at $29.7 billion, the highest in its history.

Which aircraft models are driving backlog growth?
The E175 and E195-E2 in commercial aviation, the Phenom 300 in executive aviation, and the C-390 Millennium in defense are key contributors.

How is Embraer handling supply chain issues?
The company reports delays of only 1–2 months, significantly less than competitors, due to conservative order planning and production alignment.

Sources: Reuters, Embraer Newsroom, Simple Flying, Aviation Week, Leeham News, FlightGlobal

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Wheels Up Orders Six Embraer Phenom 300E Jets for 2027 Delivery

Wheels Up agreed to buy six new Phenom 300E jets from Embraer for 2027 delivery as third-quarter revenue fell 11% to $164.8 million.

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Wheels Up Orders Six Embraer Phenom 300E Jets for 2027 Delivery
Photo: Wheels Up

Wheels Up Experience Inc. has agreed to buy six factory-new Embraer Phenom 300E light jets for delivery in the second half of 2027, its first direct purchase of new aircraft from Embraer. The private aviation company announced the order on November 5, 2026, alongside third-quarter results that showed revenue down 11% to $164.8 million and a net loss of $89.4 million.

In a press release dated November 5, 2026, Wheels Up said the definitive agreement with Embraer follows nearly three years of discussions and is expected to expand the fleet and support anticipated customer demand. The six jets will join 29 Phenom 300/300E jets and 15 Bombardier Challenger 300 series aircraft in what the company calls its premium controlled fleet, and will arrive with satellite Wi-Fi installed.

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The Phenom 300E order

Wheels Up’s investor letter for the third quarter said the order is meant to add to the fleet and keep planned capacity in line with customer demand in 2027, and that the company plans to increase fleet size by 20 to 30% in 2027. Neither the release nor the letter disclosed the value of the order or how the aircraft will be financed.

The Phenom 300 series is a core platform in the company’s modernized fleet, and Wheels Up describes it as the world’s best-selling light jet for more than a decade. Chief Executive Officer George Mattson said “Embraer has been a valued partner to Wheels Up for years,” and that the purchase reflects strong demand trends and a commitment to a consistent, premium customer experience.

Michael Amalfitano, President and CEO of Embraer Executive Jets, said the agreement reflects “the work and planning that began in 2024 to bring new Phenom 300E aircraft into their fleet.” In the investor letter he added, “This agreement marks an important milestone in our relationship with Wheels Up.”

Third quarter results in detail

Private jet flight revenue fell 7% to $143.9 million in the three months ended September 30, 2026. Within that, revenue from the premium Phenom and Challenger fleet rose 120% while that fleet grew 79%, from 24 to 43 aircraft, and legacy fleet revenue fell 44% as legacy programs wind down. Live flight legs dropped 33% to 7,774, while private jet gross bookings per live flight leg rose 27% to $22,943.

Gross profit was $15.2 million, against a loss of $1.3 million a year earlier, and included about $3 million of transformation-related expenses. The net loss of $89.4 million, or $2.48 per share, compared with $83.7 million, or $2.38 per share, in the third quarter of 2025. Adjusted EBITDA, a non-GAAP measure, improved 30% to a loss of $18.9 million from a loss of $26.9 million.

Operating measures improved. Aircraft utility rose 31% to 56.3 hours from 43.1, with the Phenom 300 series at 55.8 hours and the Challenger 300 series at 66.9 hours. The completion rate was 99.3%, and on-time performance on the company’s D-60 measure was 94.9%.

Balance sheet and the Delta facility

Cash and cash equivalents stood at $51.8 million on September 30, 2026, down from $133.9 million on December 31, 2025, while long-term debt, net, rose to $684.0 million from $316.4 million. Net cash used in operating activities was $208.3 million in the first nine months of 2026, compared with $147.9 million a year earlier.

After the quarter ended, Wheels Up entered into an additional $100 million revolving credit facility provided by Delta Air Lines, which the investor letter describes as “pivotal” in providing financial support. Wheels Up customers access premium commercial travel benefits through the company’s strategic partnership with Delta.

From legacy fleet to Phenom and Challenger

Wheels Up first announced its fleet modernization strategy in October 2024. Mattson said the program was completed earlier in 2026, “over 18 months ahead of schedule,” and the legacy fleet was retired from revenue service in April 2026, as reported in the early completion of its modernization. The company recorded a $12.7 million impairment on the legacy fleet retirement in the first nine months of 2026.

The company said that over the past three years it has streamlined and modernized its fleet, improved operational reliability, unified its global sales and service teams, a step covered in its single-brand concierge service model, and strengthened its partnership with Delta. Its Signature membership program has more than 1,500 members, including Custom Enterprise Solutions accounts modeled on it, up 130% year to date, while legacy memberships fell 62% after the April wind-down announcement.

Mattson said the quarter “marked an important inflection point for Wheels Up,” and that “Signature revenue and memberships surpassed legacy revenue and memberships for the first time.” He said the company aims to complete the sunset of legacy membership programs in 2027. For that year, the investor letter says management’s “focus is responsible, profitable growth.”

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DC Aviation Malta Adds Third Global 7500 as Fleet Reaches Six

DC Aviation Malta has added a third Bombardier Global 7500, operated under its Maltese AOC, bringing its total fleet to six aircraft.

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DC Aviation Malta Adds Third Global 7500 as Fleet Reaches Six
Photo: DC Aviation Malta

DC Aviation Malta has added a third Bombardier Global 7500 to its fleet, bringing the Maltese operator’s total fleet to six aircraft. The company announced the arrival on November 3, 2026, and said the jet will be operated under its Maltese Air Operator Certificate (AOC).

With the addition, three of the six aircraft in the fleet are Global 7500s, Bombardier’s ultra-long-range business jet. In a press release dated November 3, 2026, DC Aviation Malta (DC Aviation Ltd.), part of the Stuttgart-based DC Aviation Group, described the arrival as part of its growth strategy and its commitment to a modern fleet of high-performance ultra-long-range business jets.

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What the release says about the new jet

The release did not give the aircraft’s registration, its owner or its cabin configuration, and it did not list the other aircraft in the fleet. It also did not say whether the jet will be offered for charter or flown for a single owner. According to the company, the Global 7500’s range and cabin suit the travel needs of DC Aviation Malta’s international clients and allow non-stop connections between major destinations worldwide.

“The addition of a third Global 7500 to our fleet is an important step in our growth strategy,” said Stanley Bugeja, Managing Director of DC Aviation Malta.

Bugeja said the aircraft also reflects the experience the company has gained in managing and operating Bombardier aircraft. He said DC Aviation Malta continues to strengthen its ultra-long-range capabilities while focusing on a flight experience tailored to each client’s individual needs.

Bombardier’s ultra-long-range type

Bombardier’s April 2024 factsheet for the Global 7500 gives a maximum range of 7,700 nautical miles (14,260 km), a theoretical figure with NBAA IFR reserves at Mach 0.85 with eight passengers and four crew, and seating for up to 19 passengers. It lists a top speed of Mach 0.925 and GE Passport engines with a thrust of 18,920 lbf. The factsheet says the cabin can accommodate four living spaces, including a principal suite with a full-size bed, a dedicated crew suite and a kitchen.

In a release dated December 9, 2024, Bombardier said it had delivered its 200th Global 7500 that month and that, since the type entered service in December 2018, the fleet had achieved a dispatch reliability of more than 99.8%. The manufacturer attributes the aircraft’s record-setting performance largely to its wing, built in Red Oak, Texas, and to the GE Passport engines, built in Lafayette, Indiana.

DC Aviation’s operation in Malta

DC Aviation Malta was founded in 2008 and focuses on corporate aviation at Malta International Airport (MLA), according to a DC Aviation Group release published on February 12, 2018. That release announced that the Malta operation had received its AOC from the Transport Malta Civil Aviation Directorate, allowing it to operate and manage third-party business aircraft commercially, including charter under the Maltese 9H registration. Bugeja, who was Managing Director at the time, said the certification followed more than one year of work.

In a release dated October 29, 2025, the company announced that it had added a Bombardier Challenger 350 operating under T7 registration, issued by the San Marino Aircraft Registry, for private operations. It was the company’s first aircraft on the San Marino register, alongside its existing 9H fleet, and Bugeja said operating under both registrations “broadens our operational scope.” In the same release, the company said that over the past fifteen years Malta had become one of Europe’s most important business aviation locations.

On April 10, 2026, DC Aviation opened its renovated facilities at Malta International Airport, with new lounges, meeting rooms and crew areas. The company said its Malta team managed the full renovation while normal flight operations continued. AirPro Atlas data for Malta International Airport lists two asphalt runways: 13/31 at 10,991 feet and 05/23 at 7,785 feet.

The group behind the Malta operation

DC Aviation Group was formed in 2007 out of DaimlerChrysler Aviation, a subsidiary of DaimlerChrysler AG, according to the group’s website. Headquartered in Stuttgart, it lists locations in Dubai, Malta, Munich, Nice, San Marino and Aruba, and describes itself as running one of the largest and most versatile business fleets in Europe. The site lists International Standard for Business Aircraft Handling (IS-BAH), International Standard for Business Aircraft Operations (IS-BAO) and Air Elite certifications, and 400 employees.

The Global 7500 also flies elsewhere in the group. In a release dated January 10, 2023, DC Aviation Al-Futtaim, the group’s joint venture with Dubai-based Al-Futtaim, said it had added a Global 7500 to its managed fleet, to be managed and operated for a private owner from its base at Al Maktoum International Airport in Dubai. The addition brought its managed fleet to nine aircraft at the time.

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Western Aircraft Delivers 300th Pilatus PC-12 Worldwide

Western Aircraft becomes the first Pilatus dealer globally to deliver 300 PC-12s, accounting for 13% of the worldwide fleet.

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Western Aircraft Delivers 300th Pilatus PC-12 Worldwide
Photo: Pilatus

Boise-based Western Aircraft delivered its 300th Pilatus PC-12 on October 27, 2026, becoming the first authorized dealer worldwide to reach the milestone and cementing its position as the source for roughly 13 percent of all PC-12s operating globally.

The delivery of the aircraft, a PC-12 PRO bearing serial number 3107, coincided with the company handing over its 30th PC-24 twin-engine jet. In a press release issued by Pilatus Aircraft, the manufacturer noted the dual delivery milestones align with Western Aircraft’s 30th anniversary as an Authorized Pilatus Sales & Service Center.

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Milestone deliveries and partnership history

The 300th delivery represents a significant portion of the approximately 2,300 PC-12 single-engine turboprops Pilatus has manufactured since the program’s inception. Western Aircraft, a Greenwich AeroGroup company, has served as a primary conduit for Pilatus in the northwestern United States since becoming an authorized center in 1996.

Industry analysts note that the 300-aircraft milestone demonstrates sustained North American demand for versatile turboprop models capable of regional and remote operations. The achievement also underscores Pilatus’s strategy of utilizing a close-knit network of exclusive regional dealers to manage direct customer sales and lifecycle maintenance, repair, and overhaul (MRO) support.

Pilatus Group Chief Executive Officer Markus Bucher highlighted the longevity of the relationship between the manufacturer and the Idaho dealer.

“Over the past 30 years, we’ve built a partnership founded on trust and shared values: a passion for aviation, a commitment to excellence and a shared drive to provide every PC-12 and PC-24 customer with the best possible experience and support,” Bucher said.

Phil Winters, vice president of aircraft sales for Western Aircraft, attributed the dual delivery milestones to customer trust, dedicated employees, and the company’s longstanding partnership with the Swiss manufacturer.

Expanding the Pilatus portfolio

Western Aircraft expanded its Pilatus offerings in 2018 with the introduction of the PC-24. Marketed by Pilatus as the Super Versatile Jet, the PC-24 was designed to maintain the unpaved runway and short-field performance characteristic of the PC-12 while providing the speed and range of a twin-engine light jet.

The PC-24 program has seen continued global expansion throughout 2026, including increased adoption by military operators. In April 2026, the Spanish Navy selected the PC-24 to replace its aging Cessna Citation fleet. The French Navy subsequently took delivery of its first leased PC-24 from Jet Aviation in May 2026.

Western Aircraft’s corporate evolution

Operating from an 80,000-square-foot facility at Boise Airport (BOI), Western Aircraft has grown significantly since its founding in 1957 as the corporate flight department for the Morrison Knudsen Corporation. The company now operates as one of the largest aircraft services providers in the western United States, offering aircraft sales, maintenance, avionics, interior refurbishments, parts distribution, and fixed-base operator (FBO) services.

Greenwich AeroGroup acquired Western Aircraft in 2007, integrating it into a broader network of aviation service companies. Beyond its Pilatus dealership, Western Aircraft holds authorized service center status for Embraer, Piper, and Dassault Falcon. In July 2026, the company marked 25 years of providing MRO support for Dassault Falcon operators.

The company has also recently restructured its executive leadership. On September 14, 2026, Western Aircraft appointed Zachary Felda as chief financial officer, bringing over 20 years of aerospace and defense finance experience to the Idaho facility.

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