EMBRAER EARNINGS RELEASE: 4Q25 & FY25

Embraer S.A. (NYSE: EMBJ; B3: EMBJ3) reported strong results for the fourth quarter and full year of 2025, showcasing a robust recovery and growth trajectory. In 4Q25, the company generated revenues of $2.652 billion, contributing to a record annual revenue of $7.578 billion for the year, marking an 18% year-over-year increase, surpassing management's expectations. The growth was driven notably by the Defense & Security and Executive Aviation segments, which saw revenue increases of 36% and 25%, respectively.

For the fourth quarter, Embraer reported an adjusted EBIT of $230.9 million, achieving an 8.7% margin, with a full-year adjusted EBIT of $656.8 million - both figures exceeding guidance. Notably, the company’s adjusted free cash flow, excluding Eve, was robust at $738.3 million for the quarter and $491.2 million for the year, underpinned by higher aircraft deliveries. By year-end, Embraer's net cash position stood at $109.3 million, indicating solid financial health.

Embraer delivered 91 aircraft in 4Q25, comprising 32 commercial jets, 53 executive jets, and six defense-related units. The total deliveries for the year reached 244, indicating an 18% increase from 2024. The firm order backlog reached a record $31.6 billion, more than 20% higher year-over-year, highlighting strong demand particularly for its E175 and E2 aircraft.

Looking ahead to 2026, Embraer anticipates delivering between 80-85 commercial aircraft and 160-170 executive jets, projecting revenues between $8.2 billion and $8.5 billion. The company continues to strategically manage its liabilities, extending the average loan maturity significantly to 9.1 years. A conference call to discuss the earnings was scheduled for March 6, 2026.

Embraer's recent earnings release for 4Q25 and FY25 indicates a strong performance that reflects both resilience and growth potential in the aerospace sector. With revenues reaching an all-time high of $7.578 billion for 2025, marking an 18% year-over-year increase, Embraer's solid growth trajectory positions it favorably for 2026. The company’s guidance of $8.2 to $8.5 billion in revenues with an EBIT margin of 8.7% to 9.3% signals confidence amidst ongoing U.S. import tariffs.

The substantial growth in specific segments, particularly a 36% increase in Defense & Security and a 25% rise in Executive Aviation, demonstrates diversification of revenue streams, which is crucial for mitigating risks associated with cyclical demand in commercial aviation. Furthermore, with 244 aircraft delivered in 2025 and a firm order backlog of $31.6 billion, the company is well-poised for sustained demand in both executive and commercial sectors.

The adjusted free cash flow of $491.2 million reinforces Embraer's ability to generate cash, which is essential for funding future growth and reducing debt. Their liability management strategy has also successfully extended the average loan maturity, reducing refinancing risk and enhancing financial stability.

Looking ahead, investors should monitor Embraer's ability to meet the ambitious delivery targets set for 2026, as well as the impacts of tariffs on profitability. The current stock price could be seen as undervalued given the strong fundamentals and growth forecast. Investors might consider accumulating shares as the company capitalizes on its robust backlog and continues to execute its production and delivery plans. Overall, Embraer’s strategic positioning and financial health make it a compelling stock to watch in the coming quarters.