Embraer Signs Deal to Supply A-29 Super Tucano Aircraft to Panama

Embraer S.A. ERJ recently disclosed the signing of a contract with Panama for the delivery of four A-29 Super Tucano aircraft. These aircraft will be operated by the Panamanian National Air and Naval Service as part of its new surveillance and defense platform.

Through this deal, Panama becomes the eighth Latin American nation to select the A-29 Super Tucano, alongside Brazil, Chile, Colombia, Ecuador, Paraguay, Uruguay and the Dominican Republic.

Overview of ERJ’s A-29 Super Tucano

Embraer’s A-29 Super Tucano is recognized globally for its multi-mission capabilities, combining cost-effectiveness, modern technology and reliable performance. Designed with a simple maintenance concept, the aircraft can operate in challenging environments, making it a strong choice for nations seeking to strengthen their air defense.

The A-29 is widely deployed for border surveillance, reconnaissance, air escort and advanced pilot training. The aircraft is currently operated by 22 air forces, with additional nations expressing interest in the platform, thanks to its reliability, availability, robustness and low operating costs.

ERJ’s Growth Potential

Escalating military conflicts and border disputes, coupled with rapid advancements in combat jet technology, are driving nations to boost defense spending on combat-proven aircraft. 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 highlight considerable growth potential for top combat jet makers like Embraer, with aircraft such as KC-390 Millennium already serving in prominent military operations.

Embraer ranks among the world’s leading aircraft manufacturers. In the second quarter of 2025, its Defense & Security segment reported revenues of $221 million, up 18% year over year.

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: It is a leading provider of both manned and unmanned air systems, producing some of the world’s most advanced aircraft, including 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 3.9%. The Zacks Consensus Estimate for 2025 sales indicates year-over-year growth of 2.7%.

Lockheed Martin Corp. LMT: The company is a key player in the combat aircraft market, with a portfolio that includes 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 10.3%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 4.6%.

The Boeing Company BA: The company provides a comprehensive portfolio of advanced combat aircraft, including 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 17.9%. The Zacks Consensus Estimate for 2025 sales suggests an increase of 28.7%.

ERJ Stock Price Movement

In the past month, shares of Embraer have risen 3.1% compared with the industry’s growth of 1.9%.

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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This article originally published on Zacks Investment Research (zacks.com).

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