Embraer (EMBJ) OGMA site visit takeaways

Equity Research 24 July 2026 | 3:16PM EDT

Embraer (EMBJ): OGMA site visit takeaways

We attended the Embraer OGMA facility visit in Portugal. OGMA performs aircraft Noah Poponak, CFA | and engine MRO and related activity for a variety of aerospace & defense platforms. Goldman Sachs & Co. LLC In recent years, this business has seen strong growth and improved profitability. Connor Dessert Moving forward the rate of growth and margin expansion should accelerate | considerably given the company’s position with the Pratt & Whitney GTF engine and Goldman Sachs & Co. LLC

a growing European defense market. In our view the Services segment is an Amanda Fenenbock, CFA | underappreciated component of long-term EMBJ earnings power, and OGMA is a big Goldman Sachs & Co. LLC part of that. We are Buy rated on EMBJ. Nizar Mesani | Goldman Sachs India SPL Takeaways from our OGMA site visit Tomas Russo | Goldman Sachs & Co. LLC OGMA - Industria Aeronautica de Portugal S.A. is a Portuguese aerospace company that performs aircraft and engine MRO across commercial, executive, and defense platforms. Originally founded in 1918, OGMA was, for much of its operating history, owned by the Portuguese government, focused on military air force maintenance work, and not profit focused. In 2004, OGMA was privatized, with the ownership split between Embraer and EMPORDEF, a holding company owned by the Portuguese government. Since then, the company has increased its focus on commercial and civil aviation market opportunities, and it now employs ~2,200 people. More recently, Embraer management has substantially increased the focus on growth and margins.

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Exhibit 1: OGMA portfolio overview Aircraft MRO Embraer Embraer Lockheed Martin Airbus Leonardo Defense Commercial Defense Defense Defense Super Tucano E2-Jet F-16 C-295 EH-101 ERJ 145 AEW E-Jet C-130 C-390 ERJ 145 P-3 Lineage Legacy

Engines MRO Rolls Royce Rolls Royce Rolls Royce Pratt & Whitney Honeywell Defense Defense Comm / Exec Commercial Defense AE2100 A AE1107 C AE3007 GTF 1100 G APU GTCP85/95 Saab 2000 Bell V-22 Osprey EMBJ ERJ Airbus A320 Fam. LMT C-130 H Cessna Citation X LMT P-3 AE2100 D3 T56 GTF 1900 G LMT C-130 J LMT C-130 H EMBJ E2 LMT P-3 NOC C-2

Aerostructures Embraer Embraer Dassault Daher Pilatus Defense Commercial Executive Civil Civil C-390 Legacy F2000 / F6X / F7X TBM PC12 Main LG doors Frames Panels Wings Fuselage Elevator Pylons Wings Aponson E2 Ducts Composite Parts Fuselage Composites Parts

Airbus Airbus Lockheed Martin Helicopters Defense Defense AS365 Dauphin C295 C-130 J Fuselage Fuselage Wings Trailing Edge Nacelles NH90 Engine Parts Interiors Parts

Source: Company data, Goldman Sachs Global Investment Research

Strategic priorities. Since OGMA’s privatization in 2004, the company has increasingly focused on higher margin commercial and executive aviation work, notably in engines. OGMA performs MRO work on the P&W GTF, which is a key focus area for the company. OGMA expects to service 55 GTF engines this year, 60 next year, and ~100 in 2028. By 2035, the majority of company revenues are expected to come from engine MRO, but OGMA also sees opportunity to service more defense aircraft given European budget trajectories and national security objectives across the continent.

Financials. In 2025 OGMA generated 343mn EUR (~$390mn USD) in revenue and 22.4 EUR (~$25.5mn USD) in EBIT, a 6.5% margin. The company aims to generate over $500mn USD of revenue this year, and by 2030 aims to generate over 1bn EUR ($1.14bn USD) of revenue with a margin approaching the low-double-digits. In 2030, we estimate EMBJ will generate $3.2bn USD in Services and Support revenue, which would…