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The plug has officially been pulled on Embraer's project to develop a net-gen turboprop with rear-mounted engines.
During the question-answer session company's third-quarter earnings call on Monday morning, Embraer CEO Francisco Gomes Neto closed the door with certainty.
"The turboprop project or initiative has been canceled by us," he said. "I mean, we don't have at this point of time any project or initiative in that direction anymore. It might change in the future, but at this point of time, the project has, I mean, it's not on hold. It has been canceled."
Neto then said the program to develop its next-gen 90-seater jet, the E175-E2, is on hold due to the US scope clause limiting the number and size of regional aircraft as part of contractual agreements between pilots' unions and airlines.
Monday's statement on the turboprop project provides clarity to comments made in June to Air Transport World during the Paris Air Show.
"It is quite far down in the freezer at the moment," Embraer Commercial Aircraft CEO Arjan Meijer told the outlet then. As recently as 2023, he had reportedly said the project was still active. First announced in 2022 at the Farnborough International Airshow, Embraer called its new-generation turboprop idea "revolutionary in design, fully sustainable and (offering) passengers an unparalleled level of cabin comfort."Neto's comment on Monday apparently removes the project from the freezer, skips the backburner and places it directly into the trash bin as the maker of the Praetor and Phenom line of private jets looks elsewhere to develop its aircraft of the future.
Embraer dealing with US tariffs
In its earnings report, Embraer partially blamed its shrunken margin of earnings before interest and taxes (EBIT) of 4.2% in its executive aviation segment on US import tariffs.
Embraer CFO Antonio Carlos Garcia said the tariff impact will be even heavier in its fourth-quarter earnings.
However, the overall financial picture looks promising for the company, he said: "We remain comfortable with our outlook and feel confident we are on track to meet our four-year guidance."
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The company reiterated its 2025 guidance, with expected commercial aircraft deliveries of between 77 and 85, along with between 145 and 155 aircraft in its executive aviation segment. Revenue is expected to top $7 billion, with an adjusted EBIT margin between 7.5% and 8.3%.
The $2 billion revenue for the quarter was an all-time high for Embraer and 18% higher than in 2024. Its commercial segment saw 31% year-to-year growth, while its defense segment jumped by 27%.
For the quarter, 41 executive jets were delivered, 23 light and 18 medium, along with 20 commercial jets and one military KC-390 Millennium.
Embraer's aircraft backlog of firm orders also sits at an all-time high, valued at $31.3 billion.