On 4 November 2025, Embraer officially cancelled its long-mooted development of a 70- to 90-seat next-generation turboprop aircraft, confirming that the project is no longer merely deferred but terminated. The decision was announced during the company’s third-quarter earnings call, with CEO Francisco Gomes Neto stating that the firm currently “has no project or initiative in that direction”.
Concurrently, Embraer reported that supply-chain constraints which had previously threatened its production schedule for 2025 are resolved to the extent that it holds all components needed to meet its delivery target. The manufacturer reaffirmed its aim to deliver 222-240 civil aircraft in 2025, including 145-155 business jets and 77-85 E-Jets.
| Embraer | Details |
|---|---|
| Full Name | Embraer S.A. |
| Headquarters | São José dos Campos, São Paulo, Brazil |
| Founded | August 19, 1969 |
| ICAO Code | None / ICAO – EMB |
| CEO (2025) | Francisco Gomes Neto |
| Ownership Structure | Publicly traded (NYSE: ERJ; B3: EMBR3) |
| Primary Divisions | Commercial Aviation, Executive Jets, Defense & Security, Services & Support |
| Main Production Facilities | São José dos Campos (Brazil), Gavião Peixoto (Brazil), Melbourne (Florida, USA), Évora (Portugal) |
| Major Hubs for Deliveries | São José dos Campos and Melbourne Delivery Centers |
| Key Aircraft Families | E-Jets (E170/175/190/195 series), E2 Jets (E190-E2, E195-E2), Phenom 100/300, Praetor 500/600, KC-390 Millennium |
| Employees (2025) | ~19,000 worldwide |
| Global Market Share (Regional Jets) | ~30 % of the <150-seat regional jet segment |
| Current Strategic Focus (2025) | Strengthening E-Jet E2 programmes; expanding executive jets; investing in sustainable aviation technologies |
| Key Partnerships | L3Harris (KC-390 defense program), Atech (defense systems), Eve Air Mobility (eVTOL subsidiary) |
| Certifications & Regulators | ANAC (Brazil), FAA (US), EASA (EU) |
| Sustainability Initiatives | Biofuel testing, electric hybrid R&D through Eve Air Mobility |
Embraer’s Turboprop Project Cancellation and Background
Embraer’s cancellation marks the end of an initiative that had been in exploration for several years. The company had been evaluating a turboprop model designed to challenge the stronghold of rival manufacturers such as ATR (the manufacturer of ATR 72, which crashed in Yeti Airlines flight 691in Nepal) in the regional turboprop segment.
The concept had progressed to digital renders in 2020 showing wing-mounted powerplants, followed in 2021 by a design iteration with rear-mounted engines—yet ultimately no launch decision was taken because engine manufacturers had not produced what Embraer deemed next-generation turbines.
An article published by Simple Flying quoted the words of the manufacturer to put the project on hold:
“Embraer has decided to postpone the decision on whether to go ahead with a next generation turbo prop aircraft, but will work closely with potential suppliers during the course of 2023 to secure the business the program requires”
The carrier had hoped that the turboprop it was working on would have:
- 25% increased capacity
- 15% lower operating costs
- reduced fuel burn
- 20% higher average cruising speed than current turboprops.
The project was envisioned as a contemporary, fuel-efficient successor to aging regional aircraft. Had the now-cancelled project seen the light of the day, it could, quite possibly, had reclaimed a substantial portion of the market previously served by Embraer’s Brasilia and EMB-120 models.
However, the initiative faced challenges in attracting launch partners and government support. This led to Embraer to shift:
- focus toward electric and hybrid propulsion technologies via its Eve Air Mobility subsidiary
- ongoing research into future regional aircraft concepts
Gomes Neto, the CEO of Embraer, emphasised that the initiative was not “on hold” but completely cancelled, indicating a strategic pivot rather than a temporary delay, reported Aviacionline, which quoted his words:
“The turboprop project or initiative has been cancelled by us….We don’t have at this point of time any project or initiative in that direction anymore….The project has… it’s not on hold, it has been cancelled.”
The statement is quite a change from the company’s stance on the subject during the Paris Air Show where Arjan Meijer, the CEO of Embraer Commercial Aircraft had opined to Aviation Week that the program, though had not been anulled was “quite far down in the freezer at the moment.” Meijer had exposited that the unveiling of a novel aircraft required “a performance leap that current propulsion technology cannot guarantee, making the business case unviable“. Now, the stance is one of outright cancellation.
The Cancellation of Embraer’s Turboprop is Not due to Supply-Chain Problem
During the unveiling of the aerospace manufacturer’s third-quarter financial results, it had stated that “the risk for the supply chain in 2025 … is over. We have all the parts we need to assemble the aircraft”, giving us a sense that supply-chain problems were not directly linked with stopping the turbojet program.
In the first nine months of 2025, the company delivered 148 aircraft. These included:
- 102 business jets
- 46 commercial E-Jets
It must also deliver least another 74 units (43 business jets + 31 E-Jets) in Q4 to hit its full-year target of 222-240. PR Newswire+1
Revenue for Q3 reached USD 2.004 billion, up 18 % year-on-year, and the order backlog hit an all-time high of USD 31.3 billion.
Here are some of the highlights of the aerospace giant’s finances for 3Q25.
Embraer 2025 Guidance & 3Q25 Financial Highlights
| Category | Metric / Range | Notes / Details |
|---|---|---|
| Commercial Aviation Deliveries | 77 – 85 aircraft | 3Q25: 20 commercial jets delivered (13 E2, 7 E1) |
| Executive Aviation Deliveries | 145 – 155 aircraft | 3Q25: 41 executive jets delivered (23 light, 18 medium) |
| Defense Deliveries | N/A | 3Q25: 1 aircraft delivered (KC-390 Millennium) |
| Total Aircraft Delivered (3Q25) | 62 | +5% vs 3Q24 (59 aircraft) |
| Revenue (2025 Guidance) | US$7.0 – 7.5 billion | Adjusted for EBIT and cash flow estimates |
| Revenue (3Q25) | US$2,004 million | +18% YoY; all-time high for Q3 |
| Commercial Aviation Revenue Growth (3Q25) | +31% YoY | Significant contributor to overall growth |
| Defense & Security Revenue Growth (3Q25) | +27% YoY | Driving segment expansion |
| Adjusted EBIT (3Q25) | US$172.0 million | 8.6% margin (vs 17.6% in 3Q24); 8.7% ex Boeing agreement |
| Adjusted Free Cash Flow (w/o Eve, 3Q25) | US$300.3 million | Higher deliveries and lower accounts receivables |
| US Import Tariffs (3Q25) | US$17 million | 85 basis points; US$27 million YTD |
| Firm Order Backlog (3Q25) | US$31.3 billion | All-time high |
| Credit Ratings (2025) | S&P BBB (upgrade from BBB-) | Fitch & Moody’s outlook revised to positive (BBB-/Baa3) |
Embraer might still work on the E175-E2
While Embraer has put an end to the turboprop project, the E175-E2 remains on hold. It has been reported that the aircraft is pending regulatory changes in the United States. As quoted in Aerospace Global News, Neto said,
“What is on hold is the E175-E2…That one is on hold because of the scope clause in the US. If any change happens, then we will consider restoring the work on the E175-E2.”
-
Seating capacity: up to 90 passengers
-
Maximum Take-Off Weight (MTOW): ~98,100 lbs (previous E175 MTOW: 89,000 lbs)
-
Wing: Redesigned for improved aerodynamics
-
Flight control system: Fly-by-wire installed
-
Engines: Pratt & Whitney GTF PW1700G
The aircraft has a limited access to the US regional market, and its commercial opportunities are restricted until regulatory updates or increased demand elsewhere:
“The US scope clause limits the size and weight of aircraft that regional carriers can operate under contract to major airlines. Under current labour agreements, the E175-E2’s higher maximum take-off weight pushes it beyond those limits, making it ineligible for most regional jet operations in the country.”
Embraer hints at a novel development, though
By cancelling its turboprop initiative, Embraer relinquishes ambition to re-enter a regional turboprop market segment that has remained largely stable under incumbents. The decision allows the company to reallocate resources toward its jet families and digital or electrified propulsion initiatives.
In its earnings commentary, the firm suggested future product options could be “larger or smaller than the E195-E2”, and could quite possibly develop itself as a competitor to Boeing or Airbus:
“[A new product] could be an aircraft for executive aviation, commercial or defence aircraft..It could be something larger than the E195-E2, or it could be smaller. It could be a hybrid mid-sized aircraft. We haven’t yet defined what could be on our production lines. We are investing in new technologies because it’s important that we are prepared to make that decision when the time comes…We have to have the technology readiness to react.”
Theconfirmation of supply-chain recovery is set to improves investor confidence and operational predictability for 2025 and beyond. For the regional aircraft market, the exit of Embraer from the turboprop project means potentially fewer new entrants, which may preserve the status quo among current turboprop manufacturers. The manufacturer appears to be reaffirming commitment to its existing jet programmes and business-aviation offerings rather than branching into the turboprop domain.