Alex Derber
12 November 2024

MRO Note: Embraer Invests in Services and Supply Chain

A view of Embraer’s upcoming Fort Worth, Texas MRO facility.

Credit: Embraer

Brazilian aircraft manufacturer Embraer cited supply chain problems as the reason it reduced its delivery forecast for the year from 80 commercial aircraft to 70-73.

CEO Francisco Neto said supply challenges center on certain engine components and structural parts for the E2 line.

To solve the problems, Embraer created a team to focus on the most critical elements of the supply chain and implemented digital solutions to improve parts forecasting and tighten relationships with suppliers.

In the third quarter, Embraer’s service and support revenue rose 16% year over year to $426 million; The OEM stated that this was “supported by higher fleet utilization and MRO growth.”

The division’s pre-tax profit reached $80 million. Services and support also won significant contracts during the period, increasing the backlog by approximately $350 million to $3.5 billion.

To sustain this growth, the company has allocated significant capital expenditures to its services and support operations over the next few years. This includes $90 million in 2021-25 from Portuguese subsidiary OGMA for a new line for Pratt & Whitney PW1100 and PW1900 engines. With its launch this year and a full increase by 2028.

Embraer will also be Invest $70 million in Fort Worth, Texas by 2025-26 Increasing the commercial aviation MRO footprint in North America by 50%.

Alex Derber

UK-based aviation journalist Alex Derber is the editor of Engine Yearbook and a contributor to Aviation Week and Inside MRO.