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Embraer S.A. ERJ recently received a contract from an unnamed client to provide six light-attack and advanced trainer A-29 Super Tucano Aircraft. The delivery of this order is planned for 2026 and is added to the company's backlog for the fourth quarter of 2024.
More About Embraer’s A-29 Super Tucano Aircraft
The A-29 Super Tucano is a high-precision attack aircraft with excellent weapon matching and target recognition accuracy. It is also the only aircraft in its class with an internal machine gun that can release all five pylons for use with other armaments and has more than 160 configuration options. It is extensively utilized for border monitoring, reconnaissance and training.
Embraer’s A-29 Super Tucano is recognized globally for its multi-mission capabilities, combining cost-effectiveness, advanced technology and reliable performance. The aircraft has a simple maintenance concept and can operate in harsh conditions, making it the ideal choice for nations looking to enhance their air defense capabilities. With more than 570,000 flight hours, including 60,000 in combat and more than 290 orders, the A-29 Super Tucano is a leader in its class.
Due to such remarkable features, Embraer must have witnessed a steady inflow of orders for this jet model. The recent order is a bright example of that.
ERJ’s Growth Prospects
Nations are strengthening their military capabilities in response to the expanding threat environment. Military aircraft play an important part in military operations, boosting demand for military aircraft. This is likely to have led the Mordor Intelligence firm to predict that the military aviation market will witness a CAGR of 5.2% during the 2024-2030 period.
Such projections indicate significant growth opportunities for leading combat jet manufacturers like Embraer, whose aircraft, such as the P600 AEW&C and C-390 Millennium, are deployed in various high-profile military operations.
Opportunities for Other Defense Companies
Other defense companies that are likely to reap the benefits of the military aviation market are as follows:
Northrop Grumman Corp. NOC: It is a leading provider of manned and unmanned combat jets. It builds some of the world’s most advanced aircraft, like the E-2C Hawkeye 2000, A-10 Thunderbolt II, and many more.
Northrop has a long-term (three to five years) earnings growth rate of 19.1%. The Zacks Consensus Estimate for NOC’s 2024 sales calls for an improvement of 5.3% from the prior-year reported figure.
Lockheed Martin Corp. LMT: The company is among the leaders in the combat aircraft space, with its product portfolio constituting some of the most advanced military aircraft, like the F-35 Lightning II, C-130 J Super Hercules and F-16 Fighting Falcon, among others.
Lockheed boasts a long-term earnings growth rate of 4.6%. The Zacks Consensus Estimate for LMT’s 2024 sales suggests an improvement of 5.5% from the prior-year reported figure.
The Boeing Company BA: The company offers a comprehensive portfolio of the most advanced aircraft in the combat market, which includes F/A-18 Super Hornet, P-8, C-17 Globemaster III, CH-47 Chinook, Chinook Block II, F-15EX and a few more.
Boeing boasts a long-term earnings growth rate of 19.3%. The Zacks Consensus Estimate for BA’s 2025 sales indicates an improvement of 22.5%.
