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

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.

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