1. Home
  2. / Air transport
  3. / Embraer and Flexjet Sign Historic $7 Billion Agreement, Boosting Global Business Aviation
reading time 4 min read Comments 1 comments

Embraer and Flexjet Sign Historic $7 Billion Agreement, Boosting Global Business Aviation

Written by Anna Alice
Published 07/02/2025 às 22:26
Embraer closes $7 billion deal with Flexjet, boosting shares and doubling its order book. Business aviation is booming! (Image: Reproduction/Canva)
Embraer closes $7 billion deal with Flexjet, boosting shares and doubling its order book. Business aviation is booming! (Image: Reproduction/Canva)

In a surprising deal, Embraer sold 132 business jets to Flexjet in a contract for US $ 7 billion. The deal caused the Brazilian manufacturer's shares to soar, putting the company on the radar of investors around the world! Discover the details of this mega deal!

The financial market was taken by surprise with an announcement that promises to transform global executive aviation. A billion-dollar contract, involving Brazilian manufacturer Embraer and North American Flexjet, generated a wave of optimism among investors and caused the company's shares to soar 15,51% in the auction.

At the heart of this movement is the sale of 132 executive jets, with the possibility of expanding to 182 aircraft.

The total value of the deal amounts to an impressive US$7 billion and marks one of the largest contracts in the history of business aviation.

With this, Embraer further consolidates itself in the international market, strengthening its position against competitors such as Gulfstream and Bombardier.

Agreement Details

Flexjet, a leading company in aviation private and shared ownership of aircraft, chose Embraer to expand its fleet.

The order includes the Phenom 300E, Praetor 500 and Praetor 60 models0, jets known for their advanced technology and operational efficiency.

According to analysts of the Citi Bank, this contract is a “big vote of confidence" in the quality and reliability of Embraer aircraft. In addition, it represents a significant expansion of the Brazilian manufacturer's order book, doubling its current backlog.

Financial market reaction

The impact of this contract was immediate on the market. Embraer (EMBR3) shares lled the rise in the Ibovespa, registering growth of 15,51%.

The financial volume traded by the company's shares reached R$1,42 billion, surpassing giants such as Itaú (R$1,37 billion) and Vale. This strong performance shows investors' confidence in Embraer's potential.

According to a report by Itaú BBA, the sale of the jets to Flexjet strengthens executive aviation as one of Embraer's main growth drivers.

The bank reaffirmed its recommendation of purchase for the company's shares, with a target price of US$ 51 for the ADRs traded in New York.

Why is this agreement so important?

Embraer has been standing out in the executive jet market in recent years. The Phenom 300, for example, was the best-selling light jet in the world for 11 consecutive years.

The Praetor 600, one of the models acquired by Flexjet, is recognized as the most advanced mid-size business jet in its category.

This agreement with Flexjet not only reinforces Flexjet's leadership Embraer, but it also paves the way for new business opportunities. According to industry experts, the high demand for private flights since the pandemic has increased interest in modern and efficient aircraft.

What do the experts say?

Daniel Gasparete, Gabriel Rezende and Pedro Tineo, from Itaú BBA, highlighted that the jet order practically doubles Embraer's order book and proves the strength of executive aviation within the company.

Analysts at Citi Bank emphasize that this contract represents a milestone in the company's strategy. "This order shows that Embraer is increasingly consolidated in the executive aviation segment, a highly competitive market dominated by global giants."

Citi also recommends buying, with a $48 price target for the company's ADRs.

The future of Embraer

This new contract reinforces the strategy of Embraer to grow in the executive aviation market, reducing its dependence on the commercial and military sectors.

In addition, the company has been investing in innovation, such as electric and hybrid aircraft projects, to remain competitive in the long term. With this progress, Embraer will be able to consolidate its position as a technological leader in the sector.

The partnership with Flexjet could attract new international customers, further strengthening the brand abroad. If it continues at this pace, the Brazilian company could become one of the most influential in the world in the executive segment.

The $7 billion deal between Embraer and Flexjet marks a new chapter in executive aviation. In addition to strengthening the Brazilian manufacturer in the global market, it has boosted its shares and sparked investor interest.

With an innovative portfolio and an aggressive growth strategy, Embraer remains firmly established as one of the main references in global aviation.

And you, do you believe that this contract can transform Embraer into a global giant in executive aviation?

Be the first to react!
React to article
Registration
Notify
guest
1 Comment
Older
Last Most voted
Feedbacks
View all comments
Jeremias
Jeremias
08/02/2025 17:49

Not much but great professional light passenger driver

Anna Alice

Copywriter and content analyst. She has been writing for the website Click Petróleo e Gás (CPG) since 2024 and specializes in creating texts on diverse topics such as the economy, jobs and the military.

Share across apps
0
We would love your opinion on this subject, comment!x
()
x