Embraer Agrees to Supply C-390 Multi-Mission Military Aircraft

Embraer S.A. ERJ recently inked a deal to deliver two of its C-390 Millennium multi-mission aircraft to an unnamed buyer. The agreement also entails ERJ to provide associated spare parts and a thorough training and support package.The latest client marks the 10th country to choose ERJ’s C-390 jet, following Brazil, Portugal, Hungary, South Korea, the Netherlands, Austria, the Czech Republic, Sweden and Slovakia.Significance of ERJ’s C-390 Aircraft The latest generation of military multi-mission aircraft, the C-390 Millennium, offers unparalleled mobility, high productivity and operational flexibility at a low cost on a single, distinctive, modern platform.This medium-sized military transport aircraft can carry a payload of more than 26 tons, greater than any other aircraft in its category. With a flying speed of 470 knots, it can undertake a variety of missions such as freight and troop transport, medical evacuation, search and rescue, firefighting and humanitarian activities.The aforementioned features must have been attracting more customers to select C-390 as their multi-mission aircraft, ushering in contract flows for Embraer like the latest one.ERJ’s Growth Prospects Nations are strengthening their military capabilities in response to the world's expanding threat environment. As military aircraft play an important part in defending a nation’s aerial border, we are witnessing growing demand for combat jets, including multi-mission aircraft like C-390. This is likely to have led the Mordor Intelligence firm to predict that the military aviation market will witness a CAGR of 5.2% during the 2024-2030 period.Such projections indicate significant growth opportunities for leading combat jet manufacturers like Embraer. Its Defense and Security business segment involves the research, development, production and support of military defense aircraft and related products and systems. The company’s military jet portfolio includes other combat-proven aircraft, such as the P600 AEW&C and A-29 Super Tucano, apart from C-390.Opportunities for Other Defense Jet Makers Other defense aircraft manufacturers that are likely to reap the benefits of the military aviation market are as follows:Northrop Grumman Corp. NOC: It is a leading provider of manned and unmanned combat jets. It builds some of the world’s most advanced aircraft like the E-2C Hawkeye 2000, A-10 Thunderbolt II, F-5 Tiger Fighter Jet and many more.Northrop has a long-term (three to five years) earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales calls for an improvement of 5.3% from the prior-year reported figure.Lockheed Martin Corp. LMT: The company is among the leaders in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft like the F-35 Lightning II, C-130 J Super Hercules, F-16 Fighting Falcon and a few more.Lockheed boasts a long-term earnings growth rate of 4.6%. The Zacks Consensus Estimate for LMT’s 2024 sales suggests an improvement of 5.5% from the prior-year reported figure.The Boeing Company BA: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes F/A-18 Super Hornet, P-8, C-17 Globemaster III, CH-47 Chinook, Chinook Block II, KC-46A Pegasus Tanker and a few more.Boeing boasts a long-term earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales suggests an improvement of 22.5%.ERJ Stock Price Movement In the past six months, Embraer shares have risen 40% against the industry’s decline of 1%.Image Source: Zacks Investment ResearchERJ’s Zacks Rank Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks