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Tuesday, July 21, 2026

Brazil Business

U.S. Orders Inspections of Embraer Phenom 300 Jets Over Tail Flaw

By · June 3, 2026 · 5 min read

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BRAZIL · BUSINESS

Key Facts

Who and what: The US Federal Aviation Administration adopted a new airworthiness directive for certain Embraer EMB-505 jets, the model sold commercially as the Phenom 300.

The trigger: Some aircraft may carry invalid horizontal-stabilizer clearance test results because incorrect procedures were used during the original checks.

Scope: The order covers 41 jets registered in the United States and takes effect on July 6.

Cost: Roughly $1,360 per aircraft for the inspection, rising to about $14,950 if every listed repair is needed, though warranty may cover part of it.

Why it matters: The Phenom 300 is one of the world’s best-selling light business jets and a flagship export for Brazil’s Embraer.

U.S. Orders Inspections of Embraer Phenom 300 Jets Over Tail Flaw. (Photo Internet reproduction)
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A regulatory safety order in the United States has put a spotlight on one of Brazil’s most successful aircraft, requiring inspections of dozens of Embraer business jets after officials flagged a possible flaw in how a critical tail component was tested.

What the FAA ordered for the Phenom 300

The US Federal Aviation Administration, the agency that regulates civil aviation in the United States, published a new airworthiness directive for certain Embraer EMB-505 airplanes, the model marketed worldwide as the Phenom 300. An airworthiness directive is a legally binding order requiring owners and operators to fix a condition the regulator considers unsafe before an aircraft can keep flying. The order was entered in the Federal Register, the US government’s official gazette, and becomes effective on July 6.

The directive requires operators to inspect the left-hand and right-hand horizontal stabilizers of the affected jets and, where needed, to replace certain hinge-point and pitch-trim actuator attachment parts, along with the pitch-trim actuator itself. The horizontal stabilizer is the small wing-like surface at the tail that keeps the aircraft balanced in pitch.

Why the regulator stepped in

According to the FAA, the action was prompted by the possibility that some airplanes returned invalid results when the clearance, or backlash, of the horizontal stabilizer was tested, because incorrect procedures were followed during those checks. The agency warned that the flawed testing could have masked excessive play in the component.

Excessive clearance, the regulator said, could lead to an aeroelastic phenomenon that exposes the surrounding structure and systems to unacceptable vibration and reduces the controllability of the aircraft. The directive descends from a parallel order issued by Brazil’s National Civil Aviation Agency, the regulator for Embraer’s home country, which the FAA incorporated into its own requirements.

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Embraer
NYSE: ERJEMBJ3IndustrialsAerospace & Defense20,923 employees
$12.33B
Market cap
Analyst target $68.50

Wall Street view

3.9Moderate Buy/ 5
10 Buy3 Hold1 Sell
Avg. price target $68.50  ·  +30% vs 200-day

Valuation & profitability

Market cap$12.33B
Revenue (TTM)$39.80B
P / E ratio37.7
Profit margin5.4%
Return on equity11.3%

Price & risk

52-wk low
$46.15
52-wk high
$66.87
Beta (volatility)0.92
200-day average$52.79

Revenue trend · 6y

20192024
Latest $6.39B

Ownership

Institutions46.0%
Shares outstanding183M
Top holderGQG Partners LLC
Institutional holders5+ funds

Dividend

Yield0.1%
Payout ratio31.0%
Fwd. annual$0.05
What Embraer does. Embraer S.A., together with its subsidiaries, designs, develops, manufactures, and sells aircraft and systems worldwide. It operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets. Its Defense & Security segment develops and produces military aircraft and…
Data: EODHD fundamentals (ERJ.US) · figures in USD · as of 21 Jul 2026More company intelligence →

How many jets and at what cost

The FAA estimates the order affects 41 aircraft registered in the United States. It put the cost of the inspection at about $1,360 per airplane. If every repair allowed under the directive turns out to be necessary, the bill could reach roughly $14,950 per aircraft. The agency noted, however, that the manufacturer’s warranty could cover part or all of those costs, which would soften the financial hit for operators.

The FAA framed the measure as preventive, intended to head off a safety risk rather than a response to any reported accident. The directive states plainly that the unsafe condition, if left uncorrected, could result in unacceptable vibration levels and reduced control of the airplane.

What it means for Embraer

The Phenom 300 family is among the most-delivered light business jets in the world and a marquee product for Embraer, Brazil’s aerospace champion and one of the country’s most prominent industrial exporters. Inspection orders of this kind are a routine feature of aviation oversight and are usually coordinated between the FAA and Embraer’s home regulator, but they still draw attention to a flagship aircraft and to the manufacturer’s shares, which trade in both São Paulo and New York.

For now the scope is narrow: a defined list of US-registered jets, a modest per-aircraft cost, and a compliance deadline several weeks out. The episode underscores how closely Brazil’s signature aviation export is tracked by foreign regulators whose decisions shape where and how those jets can fly.

Frequently Asked Questions

What is the Embraer Phenom 300?

It is a light business jet built by Embraer, the Brazilian aerospace manufacturer. Known in regulatory filings as the EMB-505, it is one of the best-selling aircraft in its class worldwide.

What is an airworthiness directive?

It is a binding order from an aviation regulator requiring owners and operators to correct a condition deemed unsafe before an aircraft may continue flying. Ignoring one can ground the plane.

How many aircraft are affected?

The FAA estimates 41 jets registered in the United States fall under the order. Aircraft registered elsewhere are covered by their own national regulators’ equivalent directives.

Is this linked to a crash or accident?

No. The FAA presented the order as a preventive safety measure tied to how a tail component was tested, not as a response to any reported accident or in-service failure.

Connected Coverage

For more on Brazil’s industry and markets, see foreign investors pulling out of Brazil’s stock market and China clearing all of Brazil’s beef for export.

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