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Embraer Ships Four A-29 Super Tucano Aircraft to Paraguayan Air Force

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Key Takeaways

  • Embraer shipped four A-29 Super Tucano aircraft to the Paraguayan Air Force for enhanced defense support.
  • The A-29 offers multi-mission use, including border surveillance, air escort and pilot training.
  • ERJ's Defense & Security segment saw 72% revenue growth and a $4.2B backlog in Q1 2025.

Embraer S.A. (ERJ - Free Report) recently disclosed that it has shipped four A-29 Super Tucano aircraft, out of a total of six units, to the Paraguayan Air Force. This advanced aircraft from Embraer will assist the Paraguayan Air Force in increasing its defense capabilities.

Following the news release, the company's share price rose 4.32% to reach $59.37 on July 2, 2025.

ERJ’s A-29 Super Tucano

Embraer's A-29 Super Tucano is known worldwide for its multi-mission capabilities, which combine cost-effectiveness, modern technology and dependable performance. The aircraft has a simple maintenance concept and can operate in tough environments, making it an excellent alternative for countries wishing to improve their air defense capabilities. 

A-29 Super Tucano is widely used for border surveillance, reconnaissance, air escort and advanced pilot training. To date, the company has received more than 290 orders for this aircraft, which has been chosen by 22 air forces worldwide.

ERJ’s Growth Potential

Rising military conflicts, terrorism and border disputes, along with rapid technological advancements in combat jets, have led nations to increase their defense spending on combat-proven jets. This is likely to have led the Mordor Intelligence firm to predict that the military aviation market will witness a CAGR of 4.7% during the 2025-2030 period.

Such projections indicate significant growth opportunities for leading combat jet manufacturers like Embraer, whose aircraft, such as the 
P600 AEW&C and C-390 Millennium, are deployed in various high-profile military operations.

Embraer is one of the world's major aircraft manufacturers, with a comprehensive range of defense and security aircraft. The company's Defense & Security segment generated $139 million in revenues, up 72% year over year, and maintained a solid backlog of $4.2 billion in the first quarter of 2025.

Opportunities for Other Aerospace-Defense Stocks

Other aerospace-defense companies that are likely to benefit from the expanding global military aviation market are discussed below:

Northrop Grumman Corp. (NOC - Free Report) : It is a leading provider of manned and unmanned air systems. It builds some of the world’s most advanced aircraft, like the E-2C Hawkeye 2000, E-2D Advanced Hawkeye, F-5 Tiger Fighter Jet and many more.

Northrop has a long-term (three to five years) earnings growth rate of 3.3%. The Zacks Consensus Estimate for NOC’s 2025 sales indicates year-over-year growth of 2.8%.

Lockheed Martin Corp. (LMT - Free Report) : The company is among the leaders in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft, such as the F-35 Lightning II, F-21, F-22 Raptor and F-16 Fighting Falcon.

Lockheed boasts a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for LMT’s 2025 sales implies an improvement of 4.7%.

The Boeing Company (BA - Free Report) : The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes F/A-18 Super Hornet, F-15EX, CH-47 Chinook, Chinook Block II and EA-18G Growler.

Boeing boasts a long-term earnings growth rate of 18.1%. The Zacks Consensus Estimate for BA’s 2025 sales suggests an improvement of 25.6%.

ERJ Stock Price Movement

In the past six months, shares of Embraer have risen 59.6% compared with the industry’s growth of 22.1%.

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ERJ’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.

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