Embraer Closes $5 Billion Deal with NetJets for Purchase of Executive Jets

Written by Bruno Teles

Published on 12/05/2023 at 16:35

Foto: divulgação

Be the first to react!

Embraer, One of the Largest Aircraft Manufacturers in the World, Recently Announced a US$ 5 Billion Transaction with NetJets.

According to the company, the contract involves the purchase of 250 Praetor 500 Jets, which strengthens Embraer’s presence in the Executive Jet Market.

Although the agreement is a purchase option rather than a firm order, if finalized, it will increase Embraer’s order backlog by 29% to US$ 22.4 billion and the backlog for executive jets by 120% to US$ 9.1 billion. Deliveries of the jets are expected to begin only in 2025, and the contract includes after-sales services.

JP Morgan Estimates That If the Deal Goes Through, It Will Be Worth Between US$ 150 Million and US$ 230 Million, Adding Between US$ 0.80 to US$ 1.20 to the Fair Value of Embraer’s ADRs.

This corresponds to 6% to 9% of the company’s current market value, which is estimated at R$ 12.6 billion on the B3. The bank assumes that 100% of the orders will become firm orders and that deliveries will occur within five years, starting in 2025, along with an EBIT margin of 5% to 7.5%, with a 10% tax.

ARTICLE CONTINUES BELOW

This Is Not the First Time NetJets, a Fractional Ownership Company Invested in by Berkshire Hathaway, Has Purchased Aircraft from Embraer.

In 2010, NetJets signed a contract for the acquisition of 50 Phenom 300 Jets, with an option to purchase an additional 75. In 2021, with 100 jets already delivered, NetJets ordered another 100 Phenom 300/E, a US$ 1.2 billion order.

It is worth mentioning that Embraer is currently trading at 5.5x the estimated EBITDA for this year, a significant discount compared to its main global competitors, such as Boeing, Airbus, and Bombardier.

The transaction with NetJets represents an important step for Embraer in the Executive Jet Segment, and the company expects to strengthen its market position by offering high quality and differentiated after-sales services.

Embraer Closes $5 Billion Deal with NetJets for Purchase of Executive Jets

Embraer, One of the Largest Aircraft Manufacturers in the World, Recently Announced a US$ 5 Billion Transaction with NetJets.

JP Morgan Estimates That If the Deal Goes Through, It Will Be Worth Between US$ 150 Million and US$ 230 Million, Adding Between US$ 0.80 to US$ 1.20 to the Fair Value of Embraer’s ADRs.

This Is Not the First Time NetJets, a Fractional Ownership Company Invested in by Berkshire Hathaway, Has Purchased Aircraft from Embraer.

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Toyota launches “family hybrid van” with 7 or 8 seats, 1.8 hybrid engine, fuel consumption of up to 23.8 km/l, and a price equivalent to about R$ 104,000 without taxes, below the Tiggo 8 Pro Plug-in Hybrid sold in Brazil: meet the Noah Hybrid 2026 in Japan.

China prepares mBridge, a new digital payment system with blockchain that promises transactions in seconds, lower fees, and the advancement of the digital renminbi while aiming to reduce dependence on the dollar in global trade.

Norway will excavate 3 million cubic meters of rock to open a 1,700-meter maritime tunnel, where ships will pass through a mountain in 10 minutes, escaping a stretch that has killed more than 30 people since 1900.

São Paulo accelerates basic sanitation with R$ 70 billion until 2029, expands treated water, sewage, and promises to advance universalization four years ahead of the national deadline.

Almost 1 km beneath Albania, miners find an underground “jacuzzi” of nearly pure hydrogen, with bubbles emerging from a pool inside a chrome mine and the potential to reveal a rare natural reservoir beneath Europe.

After working as a waiter for ten years, he borrowed R$ 500 from his brother, created 40-minute lines with an açaí cart on the street, and today runs a farm with 600,000 trees in Pará and a network worth R$ 45 million.

Embraer Closes $5 Billion Deal with NetJets for Purchase of Executive Jets

Embraer, One of the Largest Aircraft Manufacturers in the World, Recently Announced a US$ 5 Billion Transaction with NetJets.

JP Morgan Estimates That If the Deal Goes Through, It Will Be Worth Between US$ 150 Million and US$ 230 Million, Adding Between US$ 0.80 to US$ 1.20 to the Fair Value of Embraer’s ADRs.

This Is Not the First Time NetJets, a Fractional Ownership Company Invested in by Berkshire Hathaway, Has Purchased Aircraft from Embraer.

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

He transformed an abandoned plastic water tank into an underground house in the “hobbit hole” style, using only repurposed pallet wood, without heavy machinery or expensive labor.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Toyota launches “family hybrid van” with 7 or 8 seats, 1.8 hybrid engine, fuel consumption of up to 23.8 km/l, and a price equivalent to about R$ 104,000 without taxes, below the Tiggo 8 Pro Plug-in Hybrid sold in Brazil: meet the Noah Hybrid 2026 in Japan.

With 100 discarded pallets and simple tools, the project creates a 23 m² shelter, recycles wood used in the transport of humanitarian aid, and transforms temporary housing for refugees.

“Dude, it was bizarre”: Nubank founder admits mistake that triggered bank liquidation alert for thousands of customers and explains what really happened.

Levi’s sees FIFA cover its logo at the 2026 World Cup, joins in the fun without losing style, and turns a white cloth into marketing that goes viral on social media.

Scotland creates a brick made with over 95% recycled debris, eliminates kiln firing, and attempts to reinvent a piece used in construction for almost a thousand years.

In Taipei, 1.5 million recycled plastic bottles were saved from becoming waste, turned into building blocks, and formed a nine-story pavilion for an international exhibition.

China prepares mBridge, a new digital payment system with blockchain that promises transactions in seconds, lower fees, and the advancement of the digital renminbi while aiming to reduce dependence on the dollar in global trade.

Norway will excavate 3 million cubic meters of rock to open a 1,700-meter maritime tunnel, where ships will pass through a mountain in 10 minutes, escaping a stretch that has killed more than 30 people since 1900.

São Paulo accelerates basic sanitation with R$ 70 billion until 2029, expands treated water, sewage, and promises to advance universalization four years ahead of the national deadline.

Almost 1 km beneath Albania, miners find an underground “jacuzzi” of nearly pure hydrogen, with bubbles emerging from a pool inside a chrome mine and the potential to reveal a rare natural reservoir beneath Europe.

After working as a waiter for ten years, he borrowed R$ 500 from his brother, created 40-minute lines with an açaí cart on the street, and today runs a farm with 600,000 trees in Pará and a network worth R$ 45 million.