Embraer Stock In Spotlight After Posting Record Backlog: Retail Stays Bullish

The company ended 2024 with a bill-to-book ratio of 2.2. A ratio over one implies the firm took more orders than it delivered.

Shares of Embraer SA (ERJ) garnered retail attention on Thursday after posting a 40% rise in order backlog to a record high of $26.3 billion.

The company ended 2024 with a bill-to-book ratio of 2.2. A ratio over one implies the firm took more orders than it delivered.

The plane maker’s commercial aviation segment backlog rose 15% to $10.2 billion compared to last year but declined 8% quarter over quarter.

Embraer said the business unit delivered 31 new aircraft in the last quarter of 2024.

The Executive Aviation segment's backlog jumped 70% to $7.4 billion at the end of the quarter.

Embraer got a $7 billion order from Flexjet for its executive jets, including a firm order of 182 aircraft and 30 options.

In its Defense & Security segment, the backlog soared to$4.2 billion, a 67% jump compared to last year, aided by new orders for the C-390 Millennium and A-29 Super Tucano aircraft.

Despite the positive news, the company’s U.S.-listed shares traded lower by 2.5% on Thursday.

Retail sentiment on Stocktwits moved higher in ‘bullish’ (64/100) while retail chatter was ‘extremely high.’

Embraer is scheduled to report its fourth-quarter earnings on Feb. 27.

The company had reported third-quarter revenue of $1.69 billion in November.

Over the past year, Embraer stock has nearly tripled.

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