Embraer shares rise on Luxair orders, Portugal defense ties

Embraer said on Tuesday that Luxembourg-based Luxair has placed a firm order for two more E195-E2 jets, bumping up its 2023 order of four aircraft and helping to drive shares of the Brazilian planemaker higher. The first Luxair E2 is expected to be delivered in 2026, the Brazilian company said in a statement, adding that the new firm order provides the carrier with additional delivery slots for 2027. Luxembourg's flag carrier still holds delivery positions for three other jets, Embraer said in a statement, which could be converted into orders for the smaller E190-E2 airplane if needed.<br/>Embraer's shares were up around 2.5% in early Sao Paulo trading, among the top gainers on Brazil's Bovespa stock index, extending their year-to-date jump to 154% as demand for the firm's aircraft remains strong. The companies did not provide a price tag for the deal, but analysts at JPMorgan said that it should add around $170m to Embraer's backlog considering list prices for the E195-E2, likely increasing the firm's commercial aviation backlog by 2%. "We view today's announcement as slightly positive for Embraer given the continued backlog growth, which is at a record high of $24b, with all segments having a book-to-bill above 1:1," JPMorgan analysts said in a note to clients.<br/>