Embraer S.A. ADS

EMBJ

Market cap $12.2B

Investors interested in Aerospace - Defense stocks are likely familiar with Embraer (EMBJ) and RTX (RTX). But which of these two stocks presents investors with the better value opportunity right now?

TORONTO--(BUSINESS WIRE)--Porter Aviation Holdings Inc. (PAHI), the parent company of Porter Airlines, has secured financing with the Brazilian Development Bank (BNDES) for up to 19 Embraer E195-E2 aircraft. BNDES's commitment is fully backed by Export Credit Insurance from the Export Credit Guarantee Fund (FGE) of Brazil, managed by the Brazilian Agency for Guarantee Funds and Guarantees (ABGF). The aircraft are part of Porter's existing firm order for 75 E2s, of which 54 have already been del.

Brazilian aircraft manufacturer Embraer said on ​Friday its firm ​order backlog hit a record ⁠of $34.5 billion at the end ​of the second quarter, ​up 16% from a year earlier.

Nucor may benefit from reduced import competition. Embraer's aerospace exemption limits immediate tariff exposure.

Embraer remains a strong buy, with 14% undervaluation and sequential upside potential despite recent underperformance vs. the S&P 500. EMBJ forecasts demand for 8,500 sub-150-seat jets by 2045 but faces intensifying competition from Airbus and shifting industry trends toward larger aircraft. Growth drivers include defense demand, high-margin aftermarket services, and plans to streamline production, though free cash flow guidance remains conservative.

Both BA and EMBJ are leading aircraft manufacturers with strong exposure to commercial aviation, while both also have defense and services businesses.

South American airline ​group Abra ‌Group has ordered ​20 E2 ​aircraft from Embraer , ⁠the ​Brazilian planemaker said ​on Tuesday.

Investors need to pay close attention to EMBJ stock based on the movements in the options market lately.

I reaffirm my buy rating on Embraer, citing a compelling valuation and recent management actions to mitigate key risks. EMBJ trades at a 9% EV/EBITDA discount to peers, with a 16.5% upside if it returns to its historical premium. The $32.1 billion diversified backlog provides strong visibility and resilience across commercial, executive, and defense aviation segments.

Embraer-controlled ​electric aircraft maker Eve vowed ‌on Friday to spend money in a cautious manner as it ​eyes a 2028 certification ​for its electric vertical takeoff ⁠and landing (eVTOL) vehicle.