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.

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

While a traditional school may take several days just to raise walls, in Malawi a 3D-printed school had its structure ready in 18 hours, welcomed children in June, and showed a new solution to the lack of classrooms.

Goodbye traditional washing machine: Panasonic surprises housewives with the NA-G5 featuring four drums, a 13 kg washer and dryer, a 12 kg dryer, independent mini washers, a heat pump, and a 4-in-1 system awarded at the German Design Award.

Material once seen as a poor man’s choice returns as a climate bet, with red clay replacing part of the gray concrete in modern buildings, hospitals, houses, and a cultural center that transforms tradition into a solution against urban heat.

With a diameter of 15.08 meters, a length of 182 meters, and weighing 3900 tons, the world’s largest tunnel boring machine for drilling super hard rock made a 9 km tunnel in Georgia and impresses with its excavation power.

American company deploys humanoid robots to work live for 8 hours and surprises by showing machines handling packages at an almost human pace while accelerating production on a global industrial scale

While many stadiums simply change the flooring to host events, in Japan, an arena moves a natural field weighing 8,300 tons, raises the grass by 7.5 centimeters using air pressure, and even shifts everything on 34 wheels.

Japan begins testing solar panels over rice fields to generate energy and cultivate rice on the same land. The experiment by Chiba University will last three years and could become a model of sustainability for the entire world.

“Hello, universe”: NASA tests a superchip 500 times faster to make spacecraft “think for themselves” on missions to the Moon and Mars, processing data in real-time without relying on commands sent from Earth.

In 1989, it was just a dry gravel ditch in the driest desert of the USA, but it only took five beavers and some branches to transform Susie Creek in Nevada into a green oasis that survived even the worst droughts and proved to be more efficient than billion-dollar projects.

The famous chimpanzee that seemed like part of the family, charmed neighbors, and ultimately revealed why wild animals never truly become pets.

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.

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

While a traditional school may take several days just to raise walls, in Malawi a 3D-printed school had its structure ready in 18 hours, welcomed children in June, and showed a new solution to the lack of classrooms.

Goodbye traditional washing machine: Panasonic surprises housewives with the NA-G5 featuring four drums, a 13 kg washer and dryer, a 12 kg dryer, independent mini washers, a heat pump, and a 4-in-1 system awarded at the German Design Award.

Material once seen as a poor man’s choice returns as a climate bet, with red clay replacing part of the gray concrete in modern buildings, hospitals, houses, and a cultural center that transforms tradition into a solution against urban heat.

With a diameter of 15.08 meters, a length of 182 meters, and weighing 3900 tons, the world’s largest tunnel boring machine for drilling super hard rock made a 9 km tunnel in Georgia and impresses with its excavation power.

American company deploys humanoid robots to work live for 8 hours and surprises by showing machines handling packages at an almost human pace while accelerating production on a global industrial scale

While many footbridges only serve to cross avenues, in Tehran a 270-meter bridge transforms into a suspended square with three levels, connects two parks, and even passes over a busy highway.

While many regular shopping malls resemble concrete boxes, in Kazakhstan a transparent tent of 150 meters houses an artificial beach, an urban park, and an entire shopping center under a tensioned canopy.

While major cities move airports away from common traffic, Gibraltar coexisted with cars near the runway until a tunnel was created to divert vehicles, reduce blockages, and change access to the border.

Artificial Intelligence in CRM: The Practical Guide for B2B Sales in 2026

Japanese multinational acquires Brazilian pet industry with operations in over 50 countries, strengthens its bet on the 3rd largest pet market on the planet, and accelerates the billion-dollar competition for premium pet food in Latin America.

While many stadiums simply change the flooring to host events, in Japan, an arena moves a natural field weighing 8,300 tons, raises the grass by 7.5 centimeters using air pressure, and even shifts everything on 34 wheels.

Japan begins testing solar panels over rice fields to generate energy and cultivate rice on the same land. The experiment by Chiba University will last three years and could become a model of sustainability for the entire world.

“Hello, universe”: NASA tests a superchip 500 times faster to make spacecraft “think for themselves” on missions to the Moon and Mars, processing data in real-time without relying on commands sent from Earth.

In 1989, it was just a dry gravel ditch in the driest desert of the USA, but it only took five beavers and some branches to transform Susie Creek in Nevada into a green oasis that survived even the worst droughts and proved to be more efficient than billion-dollar projects.

The famous chimpanzee that seemed like part of the family, charmed neighbors, and ultimately revealed why wild animals never truly become pets.