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Sign up here. "Our market intelligence and engineering teams are studying all alternatives. At some point, we'll choose which path to take," he said in an interview on Tuesday. DEVELOPING NEW MODELS BRINGS HIGH COSTS New airplane models typically require billions of dollars in capital expenditures and take years to enter the market. While Embraer's debt levels are under control, jetmakers including regional jet competitor Bombardier have a history of financial struggles linked to new product launches. Embraer focuses on the regional commercial segment of 70 to 140 passengers. Its E2 family competes with Airbus' A220, but stands below the core 150-plus-seat market dominated by Airbus and Boeing. Future projects, Gomes Neto said, depend "on the product we believe we can develop, the funding strategy that doesn't jeopardize the company's financial capacity, and our customers." "Over the next few years, we'll focus on investing in new technology and maturing these studies around what Embraer's future products will be," he added. "We don't have a timeline for that decision." The planemaker expects to reach $10 billion in annual revenues by 2030 and has enjoyed strong demand for its portfolio, with its shares more than quadrupling in value since late 2023. SUPPLY CHAIN SNAGS The executive said that Embraer has secured the parts it needs to assemble aircraft it had targeted for delivery by year-end, but many arrived late, meaning that deliveries will be concentrated in the fourth quarter. The industry has grappled with supply chain bottlenecks in recent years that affected output plans and delayed deliveries. "Next year will still bring some challenges," Gomes Neto said. "On average, it's improving, but we still have some specific parts that will be difficult." "This year we didn't face any problems receiving GTF engines, and we're not anticipating issues for next year either," he said. Reporting by Gabriel Araujo; Editing by Christian Plumb, Alexandra Hudson Our Standards: The Thomson Reuters Trust Principles., opens new tab Gabriel is a Sao Paulo, Brazil-based reporter covering Latin America's financial and breaking news from the region's largest economy. A graduate of the University of Sao Paulo, joined Reuters while in college as a Commodities & Energy intern and has been with the firm ever since. Previously covered sports - including soccer and Formula One - for Brazilian radios and websites.
