Embraer, the Brazilian aerospace manufacturer, has announced a significant focus on expanding its services and support division, reporting a 16% increase in revenue during the third quarter. This growth underscores the company's commitment to strengthening its position in the regional aviation market.
Despite the revenue boost, profit margins experienced a slight decline, primarily due to supplier issues. Services now constitute a quarter of Embraer's overall revenue, supported by increased engine service volumes and the ramp-up of ground test facilities at its Portuguese subsidiary OGMA, which supports Pratt & Whitney GTF engines.
Investments in Engine and MRO Capabilities
Embraer has committed to investing $90 million into OGMA between 2021 and 2026 to add engine production lines for PW1500 and PW1900 engines. These lines are expected to generate $500 million in revenue when operating at full capacity by 2030. According to Aviation Week Network’s forecast, nearly 450 PW1900G engines will be in service by 2026, growing to approximately 1,200 over ten years, making it a leading regional engine model after the CF34 and PW100.
"Next year, there will be about 450 PW1900G engines—which power the Embraer E2 models—in service, according to Aviation Week Network’s 2026 Commercial Fleet & MRO Forecast, but this will rise to 1,200 over the next 10 years. That will make it the market’s third most popular regional aircraft engine, after the CF34 and PW100 turboprop," said Francisco Gomes Neto.
In the North American market, Embraer plans to invest an additional $70 million in its Fort Worth facility during 2025-26 to expand its MRO capacity by 50%. This facility will support regional jets like the E175, with recent contracts with American Airlines for cabin upgrades including new seats, lighting, and connectivity, which will be extended to other customers through the company’s Dallas MRO.
According to projections, close to 1,000 E175 aircraft will operate in the U.S. over the next decade. Embraer’s strategic efforts aim to enhance support services and maintenance infrastructure to meet the growing regional jet demand and bolster its market share.
