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By Scott Hamilton

Nov. 21, 2024, © Leeham News: Only a few years ago, Embraer was struggling. Airbus acquired Bombardier’s C Series program for US$1 and rebranded it the A220. Instead of competing against a financially distressed Bombardier with its E2 jets, Embraer faced the global might of Airbus.

In a defensive move, Embraer agreed to create a joint venture with Boeing as the junior partner, with a mere 20% share of the JV.

Francisco Gomes Neto, President and CEO of Embraer. Credit: Embraer.

Sales of the E2 stalled while the market awaited Boeing’s takeover of Embraer’s commercial unit. All regulatory authorities quickly approved the JV except the European Union, which stalled interminably. Embraer believes Airbus was behind the stall, and it may have been. The USA’s new President, Donald Trump, imposed a 20% tariff on Airbuses delivered to the US, and the EU was in a retaliatory mood.

Then Boeing’s global 737 MAX fleet was grounded beginning on March 10, 2019, after two fatal crashes revealed a design flaw of a flight control system. A year later, the COVID-19 global pandemic began. Sales and deliveries from all manufacturers, including Embraer, immediately tanked.

A month later, Boeing withdrew from the JV. Embraer cried foul and this year won a $150m arbitration break-up fee claim.

Today, it’s clear Embraer’s operational and financial performances have recovered from these difficult years. The stock price is up 147%. Deliveries of the E-Jets are nearing pre-pandemic, pre-JV levels. The defense, executive jet, and services divisions are on upward swings. And now, Embraer’s goal is to hit $10bn in revenues by 2030, almost double what it reported for the full year of 2023.

Executives outlined the company’s progress and ambitions at an investors’ day conference in New York on Monday. This is the first in a series of reports from this event.