Embraer posts healthy sales but warns of strained defence budgets
Embraer delivered four A-29 Super Tucanos in Q2 2021. (Photo: USAFRICOM)
Assembly continued of KC-390 tactical transport aircraft in Q2 and more Super Tucanos were delivered, but some Embraer customers are feeling the financial pinch.
Embraer reported Q2 2021 net revenues of $174.9 million in its Defense & Security segment, more than double the $85.8 million posted in Q2 2020 and accounting for 15.5% of total group sales.
Assembly work continued in Q2 on the KC-390 Millennium production line, including five units for the Brazilian Air Force (FAB) and one for the Portuguese Air Force.
Four KC-390 Millennium transport aircraft have already been delivered to the FAB and are performing ‘a variety of logistics missions’ including COVID-19 response, Embraer announced on 13 August.
Since the end of Q2, the company has also conducted unpaved runway tests of the aircraft.
A pair of A-29 Super Tucano aircraft for the Nigerian Air Force was delivered to Sierra Nevada Corporation in Q2, while two other A-29s were delivered to an undisclosed customer.
A maintenance contract with the Chilean Air Force was also renewed.
Group-wide revenues Q2 reached $1.13 billion, representing year-on-year growth of 110.4% with double-digit growth in all segments. Revenues in H1 2021 revenues grew by 65.5% compared to the same period in 2020.
While the Defense & Security segment did not experience the immediate impact of the COVID-19 pandemic, ‘there are signs that budgets of some important customers have become strained following spending to fight the pandemic and its economic impacts’, Embraer noted.
However, the Brazilian conglomerate remains confident that demand for its defence products will improve worldwide.
Related Equipment in Defence Insight
You may also like
More from Defence Notes
-
![Teledyne FLIR adds GPS-denied 3D-mapping capabilities to its CBRN uncrewed platforms]()
Teledyne FLIR adds GPS-denied 3D-mapping capabilities to its CBRN uncrewed platforms
In a partnership with Emesent, Teledyne FLIR will equip its autonomous air, ground and detection systems with the Hovermap LiDAR payload in a move that highlights a broader market shift towards modular architectures, shared payloads and interoperability across platforms.
-
![US seeks 32% boost for missile defence budget with $23 billion earmarked for interceptors]()
US seeks 32% boost for missile defence budget with $23 billion earmarked for interceptors
The Pentagon’s proposed budget for the next fiscal year includes an impressive increase in the procurement of interceptors, with the number of the US Army’s PAC-3 MSE rounds expanding by 683%, the US Navy’s Standard Missile by 365% and the MDA’s SM-3 IIA by more than 1,000%.
-
![US Army partners with Global Military Products to surge munitions production]()
US Army partners with Global Military Products to surge munitions production
Global Military Products was selected by the US Army to operate the Quad Cities Cartridge Case Facility and ramp up the production of various calibre shell cases.
-
![Growing a digital backbone: an essential capability for the multi-domain battlespace]()
Growing a digital backbone: an essential capability for the multi-domain battlespace
Future operational superiority will be defined by the ability to connect systems, data and personnel into a wider network. For armed forces, this creates the need for a digital backbone that integrates and enhances sensors and effectors of all kinds.
-
![Estonia opts for smart, adaptable and cooperative solutions in the face of Russian threat]()
Estonia opts for smart, adaptable and cooperative solutions in the face of Russian threat
Estonian-made equipment is being put through the toughest of evaluations in the hands of Ukrainian soldiers resisting the full-scale Russian invasion which began in 2022. The country has long seen the threat and is continuing to adapt for the future.
