Berkshire Hathaway’s NetJets Moves Forward with Embraer Jet Orders

(BRK.A), (BRK.B)

Berkshire Hathaway’s NetJets has begun converting its options to purchase up to 250 Praetor 500 business jets from Embraer into firm orders. This year, NetJets converted the first five options into orders, with deliveries scheduled to start in 2025, according to Alvadi Serpa Junior, the market and product intelligence director of Embraer’s executive jets unit.

“As we move forward, we should expect to see more of these orders,” said Serpa Junior.

Berkshire’s NetJets, the leader in shared ownership of private business jets, initially signed the deal with Embraer last year. Valued at over $5 billion, the deal marked the third collaboration between the two companies but the first involving the Praetor 500, a midsize business jet. Previously, NetJets had purchased the smaller Phenom 300 jets from Embraer.

Despite this significant deal, the full value is not reflected in Embraer’s executive jets backlog, which reached $4.6 billion at the end of the first quarter, marking a $300 million increase from the previous quarter. Only firm orders are included in this backlog.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Leave a Reply