EMBRAER S.A.: MATERIAL FACT
Embraer (NYSE: ERJ) has announced a significant development pause in its E175-E2 jet program. The Board of Directors approved an additional four-year delay in the program's development, extending the previous pause announced in February 2022. This decision is primarily driven by two factors: ongoing discussions with US pilot unions regarding maximum take-off weight limitations for aircraft with up to 76 seats, and current global market conditions in commercial aviation.
The company notes continued market interest in the current E175 jet model in the US market. Embraer plans to resume program development after this four-year period, which will consequently affect the aircraft's entry into service timeline.
Embraer (NYSE: ERJ) ha annunciato una significativa pausa nello sviluppo del suo programma di jet E175-E2. Il Consiglio di Amministrazione ha approvato un ulteriore ritardo di quattro anni nello sviluppo del programma, estendendo la precedente pausa annunciata a febbraio 2022. Questa decisione 猫 principalmente guidata da due fattori: le discussioni in corso con i sindacati dei piloti statunitensi riguardo ai limiti di peso massimo al decollo per gli aerei con fino a 76 posti, e le attuali condizioni di mercato globale nell'aviazione commerciale.
L'azienda sottolinea l'interesse continuo del mercato per l'attuale modello E175 jet nel mercato statunitense. Embraer prevede di riprendere lo sviluppo del programma dopo questo periodo di quattro anni, il che influenzer脿 di conseguenza la tempistica di ingresso in servizio dell'aereo.
Embraer (NYSE: ERJ) ha anunciado una pausa significativa en el desarrollo de su programa de jet E175-E2. La Junta Directiva aprob贸 un retraso adicional de cuatro a帽os en el desarrollo del programa, extendiendo la pausa anterior anunciada en febrero de 2022. Esta decisi贸n se debe principalmente a dos factores: las discusiones en curso con los sindicatos de pilotos de EE. UU. sobre las limitaciones de peso m谩ximo al despegue para aeronaves de hasta 76 asientos, y las actuales condiciones del mercado global en la aviaci贸n comercial.
La empresa se帽ala el continuo inter茅s del mercado en el modelo actual E175 jet en el mercado estadounidense. Embraer planea reanudar el desarrollo del programa despu茅s de este per铆odo de cuatro a帽os, lo que afectar谩, por lo tanto, la cronolog铆a de entrada en servicio de la aeronave.
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須岇偓电� 氙戈淡 鞁滌灔鞐愳劀 順勳灛 E175 鞝滍姼 氇嵏鞐� 雽�頃� 歆�靻嶌爜鞚� 鞁滌灔 甏�鞁潉 鞏戈笁頄堨姷雼堧嫟. 鞐犽笇霛检棎毳吹鐢 鞚� 4雲� 旮瓣皠 頉勳棎 頂勲攴鸽灗 臧滊皽鞚� 鞛皽頃� 瓿勴殟鞚措┌, 鞚吹鐢 頃车旮办潣 靹滊箘鞀� 鞁滌瀾 鞚检爼鞐� 鞓來枼鞚� 氙胳範 瓴冹瀰雼堧嫟.
Embraer (NYSE: ERJ) a annonc茅 une pause significative dans le d茅veloppement de son programme de jet E175-E2. Le Conseil d'Administration a approuv茅 un retard suppl茅mentaire de quatre ans dans le d茅veloppement du programme, prolongeant ainsi la pause pr茅c茅dente annonc茅e en f茅vrier 2022. Cette d茅cision est principalement motiv茅e par deux facteurs : les discussions en cours avec les syndicats de pilotes am茅ricains concernant les limitations de poids maximum au d茅collage pour les avions de 76 si猫ges, et les conditions actuelles du march茅 mondial dans l'aviation commerciale.
L'entreprise souligne l'int茅r锚t continu du march茅 pour le mod猫le actuel E175 jet sur le march茅 am茅ricain. Embraer pr茅voit de reprendre le d茅veloppement du programme apr猫s cette p茅riode de quatre ans, ce qui aura par cons茅quent un impact sur le calendrier d'entr茅e en service de l'avion.
Embraer (NYSE: ERJ) hat eine bedeutende Entwicklungspause in seinem E175-E2-Jetprogramm angek眉ndigt. Der Vorstand hat eine zus盲tzliche vierj盲hrige Verz枚gerung in der Entwicklung des Programms genehmigt, wodurch die zuvor im Februar 2022 angek眉ndigte Pause verl盲ngert wird. Diese Entscheidung wird haupts盲chlich von zwei Faktoren bestimmt: den laufenden Gespr盲chen mit den US-Pilotenverb盲nden 眉ber die maximalen Startgewichtsgrenzen f眉r Flugzeuge mit bis zu 76 Sitzen und den aktuellen globalen Marktbedingungen in der kommerziellen Luftfahrt.
Das Unternehmen weist auf das anhaltende Marktinteresse am aktuellen E175-Jet-Modell im US-Markt hin. Embraer plant, die Programmentwicklung nach diesem vierj盲hrigen Zeitraum wieder aufzunehmen, was folglich den Zeitplan f眉r den Eintritt des Flugzeugs in den Dienst beeinflussen wird.
- Continued strong market interest in current E175 jet model in US market
- Additional 4-year delay in E175-E2 development program
- Entry into service timeline pushed back further
- Regulatory constraints affecting program viability
Insights
Embraer's decision to extend the pause on its E175-E2 development by an additional four years represents a significant strategic adjustment with notable market implications. This is the second major delay for this program since February 2022, pushing potential entry into service well into the 2030s.
The core issue remains the US scope clauses - contractual weight restrictions in pilot union agreements that effectively prevent regional carriers from operating the E175-E2 as designed. These scope clauses limit aircraft to 76 seats and a maximum take-off weight below what the E175-E2 requires to deliver its promised efficiency improvements.
From a financial perspective, this decision likely preserves
This pause reflects calculated portfolio management rather than program abandonment. By maintaining the development program in suspended animation, Embraer retains optionality should scope clauses eventually change, while avoiding the competitive disadvantage of completely abandoning next-generation technology.
For investors, this decision offers mixed signals: positive for near-term cash preservation and focus on revenue-generating products, but potentially concerning for long-term competitive positioning against Airbus's A220 program, which targets the segment just above regional jets. The move suggests Embraer is prioritizing its successful executive jet division and emerging eVTOL/defense businesses while maintaining its regional jet presence with minimal additional investment.
EMBRAER S.A.
Publicly Held Company
CNPJ/MF: 07.689.002/0001-89
NIRE: 353.003.257-67
S脙O JOS脡 DOS CAMPOS,
The re-programing of activities remains associated with the ongoing US mainline scope clause discussions with the pilot unions regarding the maximum take-off weight (MTOW) limitation for aircraft with up to 76 seats, together with current global market conditions for commercial aviation and the continuing interest in the current E175 jet in the US market.
The Company expects to resume the program development activities following the aforementioned period, which will result in a re-programming of the aircraft entry into service.
In keeping with its strategy of innovation and growth, the Company will maintain its shareholders and the market duly informed about new material information according to the applicable legislation.
S茫o Jos茅 dos Campos, February 25, 2025.
Antonio Carlos Garcia
Executive Vice President, Financial & Investor Relations
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SOURCE Embraer S.A.
FAQ
Why did Embraer pause the E175-E2 jet development program in 2025?
How long will the ERJ E175-E2 development program be delayed?
What are the main challenges affecting the ERJ E175-E2 program development?
Will the E175-E2 delay affect Embraer's current E175 jet sales?
