MRO Memo: Embraer Eyes Services Growth In Engines, Cabins

Embraer retains strong ambitions for its Services & Support division after reporting that revenues in that area climbed 16% year-over-year in the third quarter.

However, profit margins fell slightly, which Embraer puts down to the failures of certain suppliers. It expects services margins to return to near 15% for the full year.

Services comprised 25% of Embraer’s total revenue for the period. The increase for the three months to Sept. 30 was due to higher volumes and the ramp-up of GTF services by subsidiary OGMA at its Pratt & Whitney GTF engine shop in Portugal.

Embraer planned to invest $90 million in OGMA over 2021-26 to support the addition of PW1500 and PW1900 lines, which are expected to generate $500 million of revenue when they are at full capacity by 2030.

Next year, there will be about 450 PW1900G engines—which power the Embraer E2 models—in service, according to Aviation Week Network’s 2026 Commercial Fleet & MRO Forecast, but this will rise to 1,200 over the next 10 years. That will make it the market’s third most popular regional aircraft engine, after the CF34 and PW100 turboprop.

Embraer will also invest $70 million from 2025-26 in its facility in Fort Worth, Texas, to increase its commercial aviation MRO footprint in North America by 50%.

This facility could support U.S. regional jet operators who wish to refurbish the cabins of their aging E1s, said Embraer President Francisco Gomes Neto. He highlighted a contract with American Airlines to install new seats, lighting, overhead bins and connectivity for the carrier’s E175 aircraft.

“This kit is available for other customers, and we can do it if they want at our new MRO in Dallas,” he said on an earnings call.

Aviation Week forecasts that close to 1,000 E175 aircraft will be in service with U.S. operators for the next decade.