Embraer Services & Support Revenue Rises 30% in Q3 to $638 Million on OGMA PW1000G Ramp-Up

Embraer's third-quarter aftermarket business grew 30% year over year, driven by higher volumes and the ramp-up of Pratt & Whitney PW1000G work at its OGMA subsidiary. The Services & Support (S&S) business unit generated $638 million in the quarter, compared with $493 million a year earlier, and its adjusted margin of 17% rose three points.

Services accounted for 27% of Embraer's $2.4 billion Q3 revenue, up from just under 25% a year ago. Embraer also remains on pace to meet its full-year delivery goal of 80-85 commercial jets.

CEO Francisco Gomes Neto said on the earnings call that S&S is one of the most important growth avenues for the company and that Embraer is investing to expand its capabilities for commercial jets as the fleet grows. He described services as a very profitable area that also supports client satisfaction and opens the door to new sales.

Gomes Neto said higher fuel prices have not caused customers to change fleet plans, with no delays in deliveries or sales campaigns, and added that the market has been resilient. He said the situation also creates an opportunity for the E2, which is very fuel-efficient compared with older aircraft.

In June, Embraer began regional jet maintenance, repair and overhaul (MRO) service in an existing hangar at Perot Field Alliance Airport in Fort Worth, Texas. A second hangar is under construction and is expected to open in 2027. At full capacity the facility will more than double Embraer's U.S. airframe MRO capacity, complementing existing shops in Nashville, Tennessee.

In Portugal, OGMA is steadily ramping up its PW1000G overhaul shop, which opened in 2024. Gomes Neto said OGMA's revenues remain on pace to exceed $600 million in 2030, nearly triple the 2022 figure.

Embraer's results show how an airframer's earnings mix shifts as its fleet and its MRO network grow together. Services rose from just under 25% to 27% of revenue while the unit's adjusted margin gained three points, which is the pattern that makes aftermarket capacity attractive: it earns more per dollar than the work around it and it keeps the customer relationship alive after delivery.

The OGMA contribution also shows that an MRO business can grow on third-party engine work, not only on the manufacturer's own products. PW1000G overhaul volume is feeding a unit whose parent builds regional jets, so shop capacity is behaving as a business line of its own, tied to engine demand in the wider market.

The next concrete milestones are the opening of the second Fort Worth hangar in 2027 and OGMA's progress toward the $600 million revenue mark in 2030. Quarterly S&S revenue and margin, set against the 80-85 delivery target, will show whether the aftermarket keeps gaining share of the total.