Stock Markets June 11, 2026 09:37 AM

Embraer Reports Over $15 Billion Commercial Backlog, Says E2 Engine Problems Resolved

Planemaker flags stronger delivery outlook for 2026 as E2 aircraft-on-ground rate falls sharply

By Jordan Park
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Embraer said its commercial aviation division holds a backlog exceeding $15 billion and that the principal engine issues that affected its E2 family have been fixed. The company reaffirmed a plan to deliver 80 to 85 commercial jets in 2026, highlighted a recent firm order for 15 E195-E2s from lessor Azorra, and reported a sharp decline in E2 aircraft-on-ground rates following engine improvements.

Embraer Reports Over $15 Billion Commercial Backlog, Says E2 Engine Problems Resolved
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Key Points

  • Embraer’s commercial aviation unit reports a backlog exceeding $15 billion, reinforcing near-term production visibility - impacts commercial aviation and aircraft leasing markets.
  • A recent firm order for 15 E195-E2 jets from lessor Azorra contributes to the order book supporting the company’s plan to deliver 80 to 85 commercial aircraft in 2026 - relevant to airlines and lessors.
  • E2 aircraft-on-ground rate has fallen to about 1% from a March 2025 high of 22%; Pratt & Whitney engines from RTX are being upgraded to perform better in hot, harsh environments - relevant to aerospace suppliers and airline operations.

SAO JOSE DOS CAMPOS, Brazil, June 11 - Embraer said on Thursday its commercial aviation arm is carrying a backlog in excess of $15 billion and that the main engine problems that had impacted its next-generation E2 jets have been resolved.

The planemaker noted a recent firm order for 15 E195-E2 aircraft from lessor Azorra, disclosed last week, as part of the order book supporting its production outlook. Rodrigo Silva e Souza, the unit’s marketing vice president, told reporters the company is well placed to meet guidance calling for 80 to 85 commercial aircraft deliveries in 2026.

On the operational front, Embraer said engine-related disruptions that had led to grounded E2s have been addressed. The company expects that by the end of 2026 there will be no E2 aircraft on the ground due to these engine issues, Silva e Souza said.

Embraer provided data on the E2 fleet’s aircraft-on-ground, or AOG, rate. The AOG rate has fallen to approximately 1% of the fleet, down from a peak of 22% recorded in March 2025, according to the company. E2 aircraft are powered by Pratt & Whitney engines produced by RTX, which Embraer said are now receiving upgrades intended to improve performance in hot, harsh environments.

The company also acknowledged broader industry pressure on engine manufacturers related to grounded aircraft and higher repair costs cited by airlines. Embraer’s statements emphasise both the scale of its backlog and the steps taken to reduce operational disruption after a period of elevated AOG rates for the E2 fleet.


Context and implications

Embraer’s backlog figure and the recent firm order support its 2026 delivery target, while the reported decline in AOG rates signals progress in resolving the engine availability and reliability concerns that affected the E2 family. The upgrades to the Pratt & Whitney engines are presented as a path to improved performance in challenging environmental conditions.

Risks

  • Engine makers face ongoing pressure from airlines because of grounded aircraft and increased repair costs, which could affect supplier economics and airline operating costs - impacts aerospace suppliers and airline finances.
  • Prior high AOG rates - E2 AOG reached 22% in March 2025 - indicate the scale of earlier reliability problems; residual operational disruption remains a potential uncertainty for fleet operators - impacts airline schedules and lease returns.
  • Improvements to engine performance are being implemented for hot, harsh environments, but the timeline and ultimate efficacy of these upgrades remain operative factors that could affect aircraft availability - impacts airline operations and maintenance planning.

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