Embraer Secures Contract From SkyWest to Supply 60 E175 Jets

Embraer S.A. ERJ recently clinched a contract from SkyWest Inc. for delivering 60 of its E175 aircraft, with purchase rights for 50 additional aircraft. These jet deliveries are expected to start in 2027. 

The aforementioned orders should boost Embraer’s future revenue stream and bolster its profitability.  

Significance of Embraer’s E175 Jets

The E-175 is a regional jet recognized for its fuel efficiency, superior avionics and spacious cabin. It is also appreciated for its comfort, operational agility and short to medium-distance trips. It offers seating for 76-88 passengers and features a flying range of 2,200 nautical miles (4,074 km).

Due to such remarkable features, Embraer must have been witnessing a steady inflow of orders for this jet model. The recent order placed by SkyWest is a bright example.

Opportunities Ahead for ERJ Stock

Rising air passenger traffic, backed by enhanced air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is driving growth in the commercial aviation market. This is likely to have prompted the Mordor Intelligence firm to forecast a CAGR of 6.5% for the commercial aviation market during the 2025-2030 period. Such solid market growth projections boost demand for fuel-efficient jets like those manufactured by Embraer.

Embraer’s Commercial Aviation segment backlog at the end of the first quarter of 2025 was $10 billion. Such a strong backlog not only reflects the consistent demand for ERJ’s aircraft from commercial airlines, like the latest one, but also strengthens the company’s revenue generation prospects.

Prospects for Other Aerospace Stocks

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

Airbus SE EADSY: It is one of the forerunners in the global commercial aircraft space. Its order backlog amounted to 8,726 commercial aircraft at the end of March 2025, while the company delivered 243 commercial jets to 61 customers up to May 2025.

Airbus has a long-term (three to five years) earnings growth rate of 4%. The Zacks Consensus Estimate for EADSY’s 2025 sales suggests a year-over-year improvement of 10.4%.

The Boeing Company BA: It has been a premier manufacturer of commercial jetliners for decades. Its Commercial Airplanes segment delivered 220 airplanes up to May 2025. This unit had a backlog of $460.4 billion as of March 31, 2025.

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

Textron Inc. TXT: Its Textron Aviation unit is a well-known designer of business jet brands like Cessna and Beechcraft. The segment’s order backlog as of March 29, 2025 was $7.9 billion. The unit delivered 31 Citation jets and 30 commercial turboprops in the first quarter of 2025.

Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT’s 2025 sales calls for a year-over-year improvement of 6.6%.

ERJ Stock Price Movement

In the past six months, Embraer shares have risen 47.1% compared with the industry’s growth of 15.5%.

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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