Embraer's OGMA Inks New Agreement With Pratt & Whitney On GTF Engine Maintenance

Embraer SA's ERJ OGMA signed a new contract with Pratt & Whitney, a Raytheon Technologies Corp RTX company, to include maintenance of GTF engines that power E190-E2 and E195-E2 aircraft.
OGMA joined Pratt & Whitney's GTF MRO network last year to maintain PW1100G-JM GTF engines, which power the new generation of commercial aircraft, namely the Airbus SE EADSF A320neo family. The capability is extending to include the PW1900G engine this year.
OGMA is investing €80 million in total, mostly in the first four years of the project.
Over the 30-year term of the contract between OGMA and P&W, more than €13 billion in revenue is expected.
The project creates nearly 500 jobs over the next few years and allows OGMA to triple its turnover to about €600 million per year.
Price Action: ERJ shares are trading lower by 2.69% at $14.82 on the last check Friday.