Brazilian aircraft manufacturer Embraer is pressing ahead with strategic memoranda of understanding signed with Saudi Arabia in 2023, company officials said, underscoring the kingdom’s growing weight in the global aviation market. Speaking to Asharq Al-Awsat during a tour and media briefing at Embraer’s main plant in Sao Paulo, the officials said the agreements remain active and are moving forward at a pace. The understandings cover civil aviation, military and defense applications, and urban air mobility. The remarks come as Saudi Arabia pushes through a sweeping expansion of its aviation and air transport sector under Vision 2030. The program includes new national carriers, expanded regional and international air links, and efforts to localize aircraft maintenance and parts assembly. That has made the Saudi market one of the most attractive and strategic destinations for the Brazilian aerospace group. Embraer is the world’s third-largest commercial aircraft manufacturer after Boeing and Airbus. It has a commanding position in regional aviation through its E-Jets family, which seats between 70 and 150 passengers. Through its electric aviation company Eve, Embraer is also developing electric vertical takeoff and landing aircraft, or eVTOLs, widely known as flying air taxis. The field has opened the door to promising strategic partnerships with future transport projects in Saudi Arabia. Cutting production time and tackling supply chains At the factory briefing, held after the International Air Transport Association's annual general meeting in Rio de Janeiro, Embraer Chief Executive Francisco Gomes Neto said the company was confident it could meet its operating targets for the year. He expects Embraer to deliver between 80 and 85 commercial aircraft in 2026, out of a total group delivery target of 255 aircraft, including executive jets and defense aircraft. Neto said total revenue is expected to reach between $8.2 billion and $8.5 billion this year, a sharp rise from about $3.8 billion in 2020, when the company was hit hard by the COVID-19 pandemic. The group aims to surpass $10 billion in revenue by 2030, or earlier, supported by growth in future businesses, led by Eve’s electric vertical aircraft program. He said Embraer had cut factory production time by 28% between 2021 and 2026 through operational efficiency measures. Production of the E1 now takes less than a year, down from about 18 months previously. A shift he linked to closer work with suppliers as global supply-chain bottlenecks gradually ease. The company’s backlog has also reached a record $32.1 billion, driven by strong demand across its main business units. Commercial aviation accounts for $14.5 billion of the backlog, alongside executive aviation, defense, services and logistics solutions. Neto said the figure does not include several major strategic deals announced recently. When purchase options and future acquisition rights agreed with global airlines are included, Embraer’s potential order book could rise to about $52 billion. On the sidelines of the IATA conference, Neto said Eve could eventually add about $1 billion to $1.5 billion a year to group revenue once production expands and manufacturing accelerates. He expects eVTOL vehicles to receive official certification and enter service in 2028. He also said Embraer is awaiting a major Indian government military tender in the coming months for the purchase of 60 to 80 military transport aircraft. The company sees its C-390 Millennium as a leading contender against the US-made C-130 Hercules, particularly after Embraer’s alliance with India’s Mahindra Group. Market dominance and moving past the engine crisis Arjan Meijer, chief executive of Embraer Commercial Aviation, said the company’s new E2 aircraft family is gaining strong traction in the market. He said demand is rising sharply and that Embraer has captured 76% of the global market share in its category, competing against Airbus’s A220. The E2 has attracted 24 customers worldwide, with 202 aircraft delivered and about 1.25 million flight hours logged. Meijer also said the Pratt & Whitney geared turbofan engine crisis has largely receded. Only one or two aircraft are now grounded worldwide, he said, compared with about 22% of the global fleet in March 2025. He described the technical issue as effectively behind the company. On China, Meijer said Embraer remains optimistic about gaining ground in the country’s aviation market through a dedicated team working there daily. He said the locally certified E2 family complements Chinese-made aircraft by offering capacity between the smaller C909 and the larger C919, giving Chinese airlines more flexibility to connect cities and reduce operating losses. He acknowledged continuing structural challenges in China since the closure of Embraer’s Harbin joint venture in 2016, but said discussions remain active. Meijer said Embraer has no current plans to develop aircraft larger than 150 seats, despite repeated customer interest. The company will instead focus on its core segment, where it sees the strongest prospects for profitability and efficiency.
