Embraer’s third-quarter aftermarket business grew 30% year-over-year on higher volumes and the ramp-up of Pratt & Whitney PW1000G work at its OGMA subsidiary.
“We see our Services & Support [S&S] area as one of the most important growth avenues for Embraer,” CEO Francisco Gomes Neto said on the company’s recent Q3 earnings call. “We are investing to expand our capabilities to do more service for commercial jets as the commercial jet fleet is growing. Same [with] executive jets.”
Embraer in June began regional jet maintenance, repair and overhaul (MRO) service at Perot Field Alliance Airport in Fort Worth, Texas, in an existing hangar. It is building a second hangar that is expected to open in 2027. At full capacity, the facility will more than double the company’s U.S. airframe MRO capacity, complementing existing shops in Nashville, Tenn., and Macon, Ga.
Across the Atlantic, OGMA is steadily ramping up its PW1000G overhaul shop. Opened in 2024, Gomes Neto said OGMA’s revenues remain on pace to top $600 million in 2030—nearly triple 2022’s figure.
“So, those two fronts will be leveraging services, which is a very profitable area for Embraer,” Gomes Neto said. “Not only in terms of finance but also because it ensures client satisfaction, and it opens the door to new sales for clients.”
Embraer’s S&S business unit generated $638 million in Q3, compared with $493 million a year ago. Its adjusted margin of 17% rose three points. Services accounted for 27% of the company’s $2.4 billion Q3 revenue, up from just less than 25% a year ago.
The company remains on pace to meet its full-year delivery goal of 80-85 commercial jets. Higher fuel prices are not prompting customers to change fleet plans, Gomes Neto said.
“We have not seen any impact either in terms of delay of deliveries or delay of sales campaigns because of the fuel prices,” he added. “What we have seen is that the market has been resilient. And actually, it opens an opportunity for the E2s as E2s are very fuel-efficient compared to older aircraft.”
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