Over the last few days, Embraer (ERJ’s shares jumped) from $39.79 at the end of Feb. 4 to $44.84 at the opening bell on Thursday, Feb. 5. This marks a 17% spike (at its peak, the stock was at $45.76) and a 17-year high for the Brazilian aircraft and aviation system manufacturer.
The reason for such a steep bump? On Feb. 5, the Embraer Executive Jets branch announced a $7 billion order from private jet firm Flexjet. The Cleveland-based company ordered 182 business jets.
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Embraer builds planes for major airlines and “high net worth” individuals
The deal confirms the sale of models such as the Praetor 600, Praetor 500, and Phenom 300E to Flexjet. The company branched off from Bombardier (BDRAF) with a fractional ownership and plane leasing business model popular among high-net-worth individuals for their flying needs.
“The transaction with Embraer speaks to our light, mid- and super mid offering [planes that can carry up to nine people],” FlexJet CEO Michael Silvestro told TheStreet in an interview. “That’s obviously what Embraer’s sweet spot is.”
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Silvestro also said that the company saw Embraer as the best partner for the smaller planes but also sees a growing need for larger aircraft and is looking to invest in new G450 and G650 from Gulfstream. The G650 can accommodate up to 18 passengers on one flight.
The deal struck between FlexJet and Embraer Executive Jets is the largest in the former’s 30-year history and will, once the orders are delivered, bring its fleet to 600 aircraft by 2031. The deal also leaves room for up to 30 additional aircraft if FlexJet sees the need.
Celebrities and corporate travelers account for the demand
In the last quarter ending on Dec. 31, Embraer fulfilled 75 plane deliveries to its customers, a 27% increase from the quarter before.
Embraer, established in 1969, is the wider aviation branch of the company and is based in Brazil. Embraer Executive Jets launched in 2006 to serve the private aviation market after the company first started building its Legacy private jet models in 2000.
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“In private aviation we have strong momentum right now and huge demand for our product across all platforms,” Embraer Executive Jets CEO Michael Amalfitano told TheStreet. “Not just in terms of high net worth individuals who are clearly in this space but also corporate flight departments as well. It’s very exciting to see growth in this sector.”
Embraer shares are up by more than 65% in the last six months and 19% from the same time in 2024. Such an increase marks a stark difference from aerospace manufacturing giants Airbus (EADSF) but especially the beleaguered Boeing (BA) , which has gone through multiple investigations and been issued several fines over a string of safety incidents in the last five years.
Outgoing Boeing chief executive Dave Calhoun was replaced by current CEO Kelly Ortberg in August 2024 and is currently down by more than 11% since the same period in 2024 although it saw some uptick since the start of 2025.
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