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Embraer's (ERJ) Arm Inks an Agreement With GlobalX for eVTOL
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Embraer S.A.’s (ERJ - Free Report) subsidiary, Eve UAM, LLC (EVE), recently unveiled a Letter of Intent that involves an order from Global Crossing Airlines Group, Inc. (GlobalX) for delivering 200 of its electric vertical take-off and landing aircraft (eVTOL). This order brings the total order backlog of Eve to 1,785 eVTOL. Such solid backlog trends indicate strong demand for eVTOL, thereby bolstering Embraer’s revenues.
The order, which is subject to regulatory approvals, entails the delivery of eVTOL to begin in 2026. Moreover, the agreement emphasizes the development of an ecosystem to support Urban Air Mobility (UAM) and strengthen the Concept of Operations in Miami-Dade.
Benefits of the Agreement
By the agreement, ERJ aims to use the proficiency of GlobalX as an airline, which will aid in developing the required infrastructure for eVOLT and will also augment the deployment of Eve's aircraft throughout their networks.
Moreover, the agreement provides the opportunity for EVE to increase its footprint in the North American market, thus capitalizing on the evolving prospects in the eVTOL segment of the North American market.
eVTOL’s Growth Prospects
The eVTOL market is anticipated to gain momentum as it aids in making short-distance commuting easy amid the rising congestion in traffic and also encourages zero-emission flight operations. To this end, per the reports from the Markets and Markets firm, the global eVTOL aircraft market is projected to witness a CAGR of 15.3% through 2030.
Considering ample growth opportunities in the eVTOL aircraft market segment, coupled with Embraer’s expertise in manufacturing the same, the company may clinch more agreements in the long haul, like the latest one. This, in turn, will boost its revenues from the eVTOL aircraft line of business.
Opportunities for Peers
Other aerospace majors that have tapped the eVTOL aircraft market in a bid to capitalize on growth trends are Airbus SE (EADSY - Free Report) , Textron (TXT - Free Report) and Boeing (BA - Free Report) .
Airbus’CityAirbus NextGen is an eVTOL multicopter concept featuring a wing. It has an 80-km range and a cruise speed of 120 km/h, which makes it perfect for zero-emission flight operations for a variety of applications in major cities.
The Zacks Consensus Estimate for Airbus’ 2022 earnings has been revised upward by 2.7%. The Zacks Consensus Estimate for EADSY’s 2022 sales implies a growth rate of 9.7% from the prior-year reported figure.
Textron’s business segment, Bell, is working on the plans to launch an eVTOL, Bell Nexus. Bell Nexus 4EX is a four-duct vehicle, which is configurable in an electric or hybrid-electric platform. With a hybrid platform, Nexus 4EX promises an extended reach to travel farther or to more remote locations based on mobility needs.
Textron boasts a long-term earnings growth rate of 11.8%. The Zacks Consensus Estimate for TXT’s 2022 earnings suggests a growth rate of 21.8% from the prior-year reported figure.
Aurora Flight Services, a Boeing company, works in collaboration with Wisk, the company behind the first all-electric, autonomous eVTOL aircraft in the United States. Boeing invested $450 million in Wisk to support the certification of its sixth-generation eVTOL.
Boeing boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2022 earnings suggests a growth rate of 137.2% from the prior-year reported figure.
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Embraer's (ERJ) Arm Inks an Agreement With GlobalX for eVTOL
Embraer S.A.’s (ERJ - Free Report) subsidiary, Eve UAM, LLC (EVE), recently unveiled a Letter of Intent that involves an order from Global Crossing Airlines Group, Inc. (GlobalX) for delivering 200 of its electric vertical take-off and landing aircraft (eVTOL). This order brings the total order backlog of Eve to 1,785 eVTOL. Such solid backlog trends indicate strong demand for eVTOL, thereby bolstering Embraer’s revenues.
The order, which is subject to regulatory approvals, entails the delivery of eVTOL to begin in 2026. Moreover, the agreement emphasizes the development of an ecosystem to support Urban Air Mobility (UAM) and strengthen the Concept of Operations in Miami-Dade.
Benefits of the Agreement
By the agreement, ERJ aims to use the proficiency of GlobalX as an airline, which will aid in developing the required infrastructure for eVOLT and will also augment the deployment of Eve's aircraft throughout their networks.
Moreover, the agreement provides the opportunity for EVE to increase its footprint in the North American market, thus capitalizing on the evolving prospects in the eVTOL segment of the North American market.
eVTOL’s Growth Prospects
The eVTOL market is anticipated to gain momentum as it aids in making short-distance commuting easy amid the rising congestion in traffic and also encourages zero-emission flight operations. To this end, per the reports from the Markets and Markets firm, the global eVTOL aircraft market is projected to witness a CAGR of 15.3% through 2030.
Considering ample growth opportunities in the eVTOL aircraft market segment, coupled with Embraer’s expertise in manufacturing the same, the company may clinch more agreements in the long haul, like the latest one. This, in turn, will boost its revenues from the eVTOL aircraft line of business.
Opportunities for Peers
Other aerospace majors that have tapped the eVTOL aircraft market in a bid to capitalize on growth trends are Airbus SE (EADSY - Free Report) , Textron (TXT - Free Report) and Boeing (BA - Free Report) .
Airbus’CityAirbus NextGen is an eVTOL multicopter concept featuring a wing. It has an 80-km range and a cruise speed of 120 km/h, which makes it perfect for zero-emission flight operations for a variety of applications in major cities.
The Zacks Consensus Estimate for Airbus’ 2022 earnings has been revised upward by 2.7%. The Zacks Consensus Estimate for EADSY’s 2022 sales implies a growth rate of 9.7% from the prior-year reported figure.
Textron’s business segment, Bell, is working on the plans to launch an eVTOL, Bell Nexus. Bell Nexus 4EX is a four-duct vehicle, which is configurable in an electric or hybrid-electric platform. With a hybrid platform, Nexus 4EX promises an extended reach to travel farther or to more remote locations based on mobility needs.
Textron boasts a long-term earnings growth rate of 11.8%. The Zacks Consensus Estimate for TXT’s 2022 earnings suggests a growth rate of 21.8% from the prior-year reported figure.
Aurora Flight Services, a Boeing company, works in collaboration with Wisk, the company behind the first all-electric, autonomous eVTOL aircraft in the United States. Boeing invested $450 million in Wisk to support the certification of its sixth-generation eVTOL.
Boeing boasts a long-term earnings growth rate of 4%. The Zacks Consensus Estimate for BA’s 2022 earnings suggests a growth rate of 137.2% from the prior-year reported figure.