Brazil · Defense
Key Facts
—Aircraft added. The framework covers 20 additional Gripen jets, raising Brazil's planned fleet from 36 to 56 fighters.
—Where they are built. Embraer will assemble the aircraft at its Gavião Peixoto industrial complex in São Paulo state.
—Partnership structure. Brazil remains the only country outside Sweden licensed to produce the Gripen fighter.
—Timeline. The heads of agreement was signed on 21 July 2026; a final contract is expected later this year.
—Contract value. No purchase price or contract value was disclosed for the 20-jet production framework.
Saab and Embraer signed a framework agreement on 21 July to produce 20 additional Gripen fighter jets in Brazil, locking in years of high-skill assembly work at the Gavião Peixoto plant and cementing the country’s role as the only Gripen manufacturer outside Sweden.
Brazil's aerospace industry designs and builds advanced military and commercial aircraft for global markets.
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What the Gripen Agreement Locks In
The heads of agreement creates a production capacity framework for 20 new aircraft, raising Brazil’s planned Gripen fleet from 36 to 56 jets. Embraer will handle final assembly at its industrial complex in Gavião Peixoto, São Paulo state, complementing Saab’s existing line in Linköping, Sweden.
No contract value was disclosed. The two companies said they intend to finalize the corresponding agreement before the end of 2026, turning the framework into a binding production order.
The Embraer-Saab Partnership Explained
For outsiders, the partnership works like this: Saab, the Swedish aerospace and defense company, designs and develops the Gripen. Embraer, the Brazilian aerospace giant headquartered in São José dos Campos, acts as the local industrial partner responsible for assembling a share of the jets on Brazilian soil.
Under the original 2014 contract for 36 aircraft, 15 of the fighters were already slated for final assembly at Gavião Peixoto. The new framework deepens that arrangement, channeling more work through the same facility and its Brazilian workforce.
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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
$46.1552-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…
What It Means for the Gavião Peixoto Plant
The agreement keeps high-value fighter assembly, systems integration, and skills development inside Brazil. Saab has said the expanded capacity is designed to help meet global demand for the Gripen, which implies a longer production horizon and more stable workflow for the São Paulo facility.
Brazilian aerospace engineers and technicians gain continued hands-on experience with a frontline combat aircraft program. The sources describe technological improvement and highly qualified jobs, though no precise headcount for the new framework has been published.
A 12-Year Industrial Choice
Brazil first selected the Gripen in 2014, choosing Saab’s bid over the French Rafale and the Boeing F/A-18 Super Hornet. The decision was built on a technology-transfer package that guaranteed local assembly and gave Embraer access to fighter-manufacturing know-how.
The Brazilian Air Force currently operates 12 single-seat F-39Es and one twin-seat F-39F, with earlier orders still being delivered. The new framework signals that Brasília is doubling down on that original industrial choice rather than opening a fresh competition.
What This Means for Expats and Investors
For foreign professionals and investors watching Brazil’s industrial landscape, the deal reinforces the long-term stability of the country’s high-tech aerospace sector. Embraer’s Gavião Peixoto facility, located in the interior of São Paulo state, becomes an even more critical hub for advanced manufacturing and engineering talent.
The expansion also strengthens the broader supply chain around the Gripen program. International suppliers and service companies with a presence in Brazil may see new opportunities as production scales up, even though specific contract values remain confidential.
What Happens Next
The heads of agreement is a preliminary step, not a final purchase order. Both companies have stated their intention to sign a binding contract before the end of 2026, which would formally trigger the production expansion.
Once finalized, the deal will extend the production timeline at Gavião Peixoto for several more years. For Brazil, that means a longer runway for technology absorption and a stronger negotiating position in any future defense procurement discussions.
Frequently Asked Questions
How many Gripen jets will Brazil now have?
If the framework becomes a final order, Brazil's planned Gripen fleet will total 56 aircraft — 36 from the original 2014 contract plus 20 additional jets. The Brazilian Air Force currently operates 12 single-seat F-39Es and one twin-seat F-39F, with the remaining jets from the first batch still being delivered.
Where are the Brazilian Gripen fighters built?
Final assembly takes place at Embraer's Gavião Peixoto industrial complex in São Paulo state, the only Gripen production site outside Saab's Linköping plant in Sweden. Under the original deal, 15 of the 36 jets were already designated for assembly at this Brazilian facility.
Was a purchase price announced for the 20 new jets?
No — the 21 July heads of agreement covers production capacity only, and neither Saab nor Embraer disclosed a contract value for the additional aircraft. The framework sets the stage for a binding commercial agreement expected later in 2026, which may include financial details.