Embraer's first-ever revenue guidance for its new services business projects sales of $900 million-$1 billion across its commercial, executive jets, and defense customer base, the company says.
Issued as part of Embraer's full-year 2017 earnings report, the guidance puts services at about 17% of total projected 2018 revenues of $5.4-$5.9 billion.
Embraer announced in late 2016 that it would stand up a new services business unit. At the time, the company said 15% of its revenues came from services, and the near-term goal was a 25% share in a decade. The company does not break out services revenue by operator type.
Meanwhile, Embraer reaffirmed that plans to deliver its first next-generation aircraft, an E195-E2, in April to Norway's Wideroe remain on track. The Brazilian OEM expects to deliver 5-10 E2s this year as part of its projected total of 85-95 commercial deliveries. Embraer delivered 101 commercial jets in 2017.
The delivery dip was expected as part of the transition to the new-generation models. The E2 family's other two members, the E195-E2 and E175-E2, are expected to enter service in 2019 and 2021, respectively.