Embraer (EMBR3) investor relations material

Executive summary

• Achieved record second quarter revenue of $1.8 billion, up 22% year-over-year, with the highest Q2 adjusted EBIT margin in a decade and backlog reaching an all-time high of $29.7 billion, up 40% year-over-year, driven by strong demand across all business units.

• Deliveries increased 30% year-over-year, with book-to-bill ratio near 2:1, reflecting operational efficiency and production leveling initiatives.

• Major orders included SAS (45 E195-E2s), SkyWest (60 E175s), and Portugal and Lithuania expanding KC-390 orders, reinforcing defense momentum in Europe.

• Executive Aviation led growth with revenue up 64% year-over-year and deliveries up 41%.

• U.S. tariffs remain a concern, but recent reductions and ongoing negotiations may provide upside if resolved; 2Q25 results were not materially impacted.

Financial highlights

• Q2 revenue reached $1.8 billion, up 22% year-over-year, marking the best second quarter in company history.

• Adjusted EBIT margin reached 10.5%, the highest Q2 margin in ten years; adjusted EBITDA margin was 13.5%.

• Adjusted net income was a loss of $5 million (-0.3% margin) due to non-cash impacts and deferred taxes; reported net income was BRL79 million (4.3% margin).

• Adjusted free cash flow was negative in Q2, mainly due to a $312 million increase in working capital in preparation for higher deliveries in H2.

• Cash position at quarter-end was $1.36 billion; gross debt reduced to $2.05 billion year-over-year.

Outlook and guidance

• 2025 guidance reaffirmed: revenue between $7.0–$7.5 billion, adjusted EBIT margin 7.5–8.3%, and adjusted free cash flow of $200–$300 million or higher.

• Expected deliveries: 77–85 commercial aircraft and 145–155 executive jets for the year.

• Guidance remains cautious due to anticipated higher tariff impact (80% of annual effect in H2), inflationary pressures, and FX volatility.