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Embraer Wins Deal From LATAM Airlines to Supply Up to 74 E195-E2 Jets

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Key Takeaways

  • Embraer landed a deal with LATAM Airlines for up to 74 E195-E2 aircraft.
  • The 24 firm orders, worth $2.1B, begin delivery in late 2026 with LATAM Brazil.
  • Air travel demand and the need for modern aircraft are fueling opportunities for Embraer.

Embraer S.A. (ERJ - Free Report) recently landed an agreement with LATAM Airlines Group to supply up to 74 E195-E2 small, narrowbody aircraft, including 24 firm orders and 50 purchase options. Deliveries of the firm orders are scheduled to begin in the second half of 2026, starting with LATAM Airlines Brazil and potentially extending to other affiliates within the group. 

The 24-aircraft firm order is worth about $2.1 billion at list prices. This new fleet addition will strengthen LATAM Group’s hub operations, allowing it to reach more destinations and broaden travel choices for passengers. The E195-E2 provides adaptable seating options, accommodating 120 to 146 passengers in a single-class design, with a maximum capacity of either 150 or 132 seats, depending on the configuration.

Benefits of ERJ’s Agreement

The choice of Embraer's E195-E2 highlights the aircraft's strong economics, improved fuel efficiency and flexibility, which promote profitable growth through new destinations and increased connectivity.

This deal benefits Embraer by bringing in significant revenues, boosting its presence in the small, narrowbody aircraft market and reinforcing its partnership with LATAM Airlines.

Growth Opportunities for ERJ

Per a report by aerospace leader Airbus SE (EADSY - Free Report) , rising air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is boosting the commercial aircraft market. The global passenger and freighter fleet is projected to nearly double between 2025 and 2044, with demand for 43,420 new aircraft. This trend is expected to benefit fuel-efficient aircraft manufacturers such as Embraer.

In September 2025, Embraer secured an order from Avelo Airlines for 50 E195-E2 aircraft, with an option for 50 more, highlighting the continued strong demand for ERJ’s aircraft among commercial airlines.

Prospects for Other Aerospace Stocks

Other aerospace stocks that stand to benefit from the growing commercial aviation market are as follows:

Airbus SE: The company has established itself as a preferred choice for passengers and operators worldwide. Its passenger aircraft lineup includes the A220, A320, A330, A350 and A380 families.

Airbus has a long-term (three to five years) earnings growth rate of 22.8%. The Zacks Consensus Estimate for 2025 sales is pegged at $85.54 billion, which indicates a rise of 14.4%.

The Boeing Company (BA - Free Report) : It has been a leading commercial jet manufacturer for decades, with more than 14,000 aircraft in service worldwide. Its commercial lineup includes the 737 MAX, 747-8, 767, 777 and 787 models.

Boeing has a long-term earnings growth rate of 17.9%. The Zacks Consensus Estimate for 2025 sales stands at $85.66 billion, which calls for a jump of 28.8%.

ERJ Stock Price Movement

In the past year, Embraer shares have surged 63.8% compared with the industry’s growth of 13%.

Zacks Investment Research
Image Source: Zacks Investment Research

ERJ’s Zacks Rank & A Key Pick

Embraer currently carries a Zacks Rank #3 (Hold). A better-ranked stock from the same industry is Howmet Aerospace Inc. (HWM - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HWM has a long-term earnings growth rate of 21.6%. The Zacks Consensus Estimate for 2025 sales stands at $8.12 billion, which calls for a jump of 9.4%.

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