Steady growth in Embraer’s Services and Support business (ESS) is poised to accelerate as the manufacturer’s fleet size increases and a new engine overhaul joint venture kicks off.

The Brazilian manufacturer saw ESS revenues climb 12% in 2023 to $1.4 billion, matching its 2022 growth rate. It opened three new executive jet MRO shops in the U.S., doubling its business jet services capacity in the country. Demand for work on its regional jet fleet continues to grow as well, with slots at its in-house shops hard to find, particularly at its two U.S. facilities, in Nashville, Tenn. and Macon, Ga.

Soon, it will start seeing Pratt & Whitney PW1000G-series overhaul revenues from its OGMA joint venture with the Portuguese government. Announced as an authorized PW1000G service center in 2020, OGMA has been finalizing preparation for the first PW1100G engine induction, slated for sometime in 2024. OGMA’s facility at Alverca Airport will also overhaul PW1900s, which power Embraer’s E190/E195-E2s.

“OGMA is moving very fast,” Embraer President Francisco Gomes Neto said in late 2023. The Pratt agreement “is a very important contract for OGMA that will help OGMA to triple its revenues in the next two or three years.”

That in turn will help stimulate ESS’s growth. Morgan Stanley (MS) projects the company’s services segment will double by 2028, with OGMA revenues accounting for about $500 million, the firm said in a recent research note. MS’s Embraer outlook, which it notes is more bullish than many Wall Street peers, would see services account for 31% of Embraer’s revenues in 2028, up from 27% in 2023.

“As the installed base for both executive and commercial aircraft continues to age, there are incremental opportunities for increased revenue in this segment,” MS wrote.

ESS also houses the company’s freighter conversion program, which expects to deliver its first converted freighter later in 2024.