Embraer Wins $4B Scandinavian Airlines Order to Supply 55 E195-E2 Jets
The aforementioned orders should boost Embraer's future revenue stream and bolster its profitability.
Why E195-E2 Jets?
Embraer's E195-E2, the largest aircraft in the E-Jet E2 family, achieves double-digit lower fuel consumption compared to the current-generation E-Jets. This must have encouraged SAS to add it to its existing fleet, as the carrier company seeks to improve its connectivity throughout Scandinavia and Europe.
This jet offers seating for 120-146 passengers and features a flying range of 3,000 nautical miles (5,556 km). Such remarkable features must have been boosting the demand for the E195-E2 jets, as evidenced by the latest order and the company's delivery of an E195-E2 jet to Mexicana last month. This delivery was part of a larger 2024 deal to supply 10 E195-E2 aircraft to Mexico's state-owned carrier.
Opportunities Ahead for ERJ Stock
Rising air passenger traffic, backed by enhanced air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is driving growth for commercial passenger jets. To this end, jet giant Airbus EADSY expects the world's passenger fleet to nearly double during the 2025-2044 period, with the demand for new commercial jets totaling 43,420 new aircraft. This demand trend should bode well for fuel-efficient jet makers like Embraer.
Embraer's Commercial Aviation segment backlog at the end of the first quarter of 2025 was $10 billion, while that for executive jets amounted to $7.6 billion. Such a strong backlog not only reflects the consistent demand for ERJ's aircraft from commercial airlines, like the latest one, but also strengthens the company's revenue generation prospects.
Prospects for Other Aerospace Stocks
Other aerospace stocks that stand to benefit from the growing commercial aviation market are as follows:
Airbus SE: It is one of the forerunners in the global commercial aircraft space. Its order backlog amounted to 8,726 commercial aircraft at the end of March 2025.
Airbus has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for EADSY's 2025 sales suggests a year-over-year improvement of 12.9%.
The Boeing Company BA: It has been a premier manufacturer of commercial jetliners for decades. Its Commercial Airplanes segment had a backlog of $460.4 billion as of March 31, 2025.
Boeing has a long-term earnings growth rate of 18.1%. The Zacks Consensus Estimate for BA's 2025 sales suggests a year-over-year improvement of 25.6%.
Textron Inc. TXT: Its Textron Aviation unit is a well-known designer of business jet brands like Cessna and Beechcraft. The segment's order backlog as of March 29, 2025 was $7.9 billion.
Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT's 2025 sales calls for a year-over-year improvement of 6.6%.
ERJ Stock Price Movement
In the past six months, Embraer shares have risen 59.4% compared with the industry 's growth of 22.6%.
ERJ's Zacks Rank
Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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The Boeing Company (BA): Free Stock Analysis Report
Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report
Textron Inc. (TXT): Free Stock Analysis Report
Airbus Group (EADSY): Free Stock Analysis Report
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