By Brazil Stock Guide – The list of top suppliers released by Embraer (EMBJ3; EMBJ), an annual award recognizing its strategic partners, offers a clear window into the company’s evolving identity. By honoring partners such as Pratt & Whitney, Hexcel, Garmin, Diehl Aviation and FACC, the Brazilian aircraft manufacturer reveals how it structures its delivery capacity at a time of strong global demand.
The announcement works as a map of its value chain — and, by extension, its risks and competitive advantages. Embraer operates as an integrator rather than a fully vertically integrated manufacturer. The awarded suppliers concentrate critical technologies — engines, composites, avionics, interiors, structures and mechanical systems — indicating that the company depends on a highly specialized ecosystem to sustain its production pace.
In an industry where delays in a single component can halt the entire line, this global architecture requires near-surgical coordination. The list also highlights a structural dependency: Embraer’s critical supply chain remains largely concentrated outside Brazil, particularly in the United States and Europe. While this ensures access to state-of-the-art technology, it also increases exposure to currency volatility, international logistics and geopolitical tensions.
Among the highlighted partners are Pratt & Whitney (United States, engines), Hexcel (United States, composite materials), Garmin (United States, avionics), Diehl Aviation (Germany, interiors), FACC (Austria, structures), Moog (United States, mechanical systems) and Fokker Services (Netherlands, support and maintenance), as well as companies such as SAP (Germany, indirect procurement) and ASE (Italy, new developments), reflecting the functional and geographic breadth of Embraer’s partner base.
Globo Usinagem, the only Brazilian company among the award winners, stands out in the subcontracting category — a local link within a highly specialized global chain. Founded in 1985, the company has built a solid presence in the aerospace sector over decades of industrial expansion. It has developed capabilities in high-precision machining, including 5-axis milling and the processing of critical alloys such as titanium and Inconel. Its operations span from raw material imports to the export of parts, assemblies and subassemblies, reflecting a level of integration consistent with the standards required by the aerospace industry.
The most strategic element lies in the Embraer Supplier Advisory Council (ESAC), which now includes the awarded suppliers. The council serves as a direct forum between Embraer’s senior leadership and its key industrial partners, discussing market trends, capacity planning and business opportunities. In practice, it institutionalizes the supply chain as part of the company’s strategy.
Execution as the edge
The focus on “consistent execution” reflects the company’s current phase. With a growing backlog and rising production — Embraer ended 2025 with an order book of approximately $31.6 billion, the largest in its history — the main challenge is no longer selling aircraft, but delivering them on time. The company expects to increase output in 2026, with estimated deliveries of 80 to 85 commercial jets and 160 to 170 executive jets, further pressuring the supply chain.
That pressure is already visible in the numbers. In 2025, Embraer reported adjusted EBIT of approximately R$3.6 billion and adjusted free cash flow of around R$2.3 billion — metrics that rely heavily on operational predictability to remain sustainable. In a still-constrained global supply environment, reliable suppliers are no longer just partners; they become part of the financial equation. Ultimately, they determine delivery timelines, margins and the conversion of backlog into cash.
After the collapse of its agreement with Boeing in 2020 — which would have turned Embraer into a subsidiary focused on commercial aviation — the company was forced to reposition itself. Without its U.S. partner, it had to regain autonomy and prove it could compete on its own. The response was less about expansion and more about execution: deepening integration with its global supply chain and reinforcing its role as an industrial orchestrator.
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