On Wednesday, Brazilian aircraft manufacturer Embraer announced a partnership with Flexjet to supply up to 212 jets, in a deal worth up to $7 billion based on current list prices. This agreement marks the largest firm order to date for Embraer's executive aircraft, comprising 182 firm orders and 30 additional options, as stated in a company release.
The contract, a significant boost for Embraer, comes amid strong demand for its commercial and executive aircraft. Following the announcement, Embraer’s stock surged over 9.5% in early trading in Sao Paulo, making it the leading gainer on Brazil's Bovespa index.
The array of aircraft ordered by Flexjet includes Praetor 600, Praetor 500, and Phenom 300E jets, complemented by associated services and support. Embraer highlighted this agreement as the largest order in Flexjet's three-decade history and a milestone for its executive aircraft division.
While the delivery schedule for the Flexjet order remains undisclosed, Embraer's collaboration with Berkshire Hathaway-owned Flexjet to convert options for up to 250 Praetor 500 jets into firm orders signifies positive momentum for the company. JPMorgan analysts anticipate that this deal will elevate Embraer's total backlog by approximately 26% to about $28.7 billion, with deliveries expected over the next five years as Flexjet aims to double its fleet during this period. Describing the announcement as "very positive," analysts communicated their optimism in a client note.