Embraer S.A. ERJ recently disclosed that it has inked an agreement with SNC, a global leader in aerospace and national security, to sell one A-29 Super Tucano aircraft.
The aircraft will be built at Embraer’s defense production facility in Jacksonville, FL.
Why the Deal Is Significant for Embraer
Through this deal, Embraer strengthens its decade-long partnership with SNC, which has delivered nearly 50 multi-mission combat aircraft worldwide, reinforcing its foothold in the defense market. The collaboration also positions Embraer to capture future Foreign Military Sales opportunities.
This enduring partnership enhances ERJ’s global credibility and supports growth in light attack and multi-mission aircraft programs.
Embraer Leads in Military Aviation
Embraer, a leading global aircraft manufacturer, offers a broad portfolio of defense and security aircraft, including the next-generation KC-390 Millennium multi-mission transport and air-to-air refueling aircraft, as well as the light-attack and advanced trainer A-29 Super Tucano.
Embraer's A-29 Super Tucano is a robust and potent turboprop aircraft recognized for its rugged and resilient design, allowing it to operate from unimproved runways and forward operating bases in adverse conditions.
A-29 Super Tucano is widely used for border surveillance, reconnaissance, air escort and advanced pilot training. So far, Embraer has secured more than 290 orders, and the aircraft is operated by 22 air forces worldwide.
The company's Defense & Security segment recorded $221 million in revenues, up 18% year on year. The upside was driven by solid revenue recognition from the A-29 Super Tucano jet program.
Other Aerospace-Defense Stocks to Watch
Other aerospace-defense companies that manufacture military aircraft are discussed below:
Northrop Grumman Corp. NOC: The company has been a pioneer in the development of manned aircraft. It produces 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 others.
The Boeing Company BA: The company provides a broad portfolio of the most modern aircraft in the military space, including the F/A-18 Super Hornet, F-15EX, CH-47 Chinook, Chinook Block II, and EA-18G Growler.
Lockheed Martin Corp. LMT: The company's product line includes some of the most cutting-edge military aircraft, including the F-35 Lightning II, F-21, F-22 Raptor, and F-16 Fighting Falcon, making it one of the industry leaders in combat aircraft.
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The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Northrop Grumman Corporation (NOC): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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