Embraer (EMBR3) Q2 2025 earnings summary

Executive summary

• Achieved record second quarter revenue of $1.8 billion (R$10.3 billion), up 22–31% year-over-year, with a record backlog of $29.7 billion, up 40% year-over-year, driven by strong demand across all business units.

• Delivered 61 aircraft in Q2, a 30% increase year-over-year, with Executive Aviation deliveries up 41%.

• Adjusted EBIT margin reached 10.5–10.6%, the best for a second quarter in a decade, driven by higher volumes and operational efficiencies.

• Book-to-bill ratio close to 2:1 over the last 12 months, reflecting robust order activity and operational efficiency.

• 2Q25 results were not materially impacted by U.S. tariffs.

Financial highlights

• Net revenue: $1.8 billion (R$10.3 billion) in 2Q25 (+22–31% YoY); adjusted EBITDA margin 13.5%; adjusted EBIT margin 10.5–10.6%.

• Executive Aviation revenue surged 64–74% year-over-year, with EBIT margin rising to 14.5–14.6%.

• Commercial Aviation revenue grew 4–11% year-over-year; EBIT margin at 4.2–4.3%.

• Defense & Security revenue increased 18–28% year-over-year; EBIT margin improved to 9.2–9.3%.

• Services & Support revenue up 13–23% year-over-year; EBIT margin at 15.5–15.6%.

Outlook and guidance

• 2025 guidance reaffirmed: revenue $7.0–7.5 billion, adjusted EBIT margin 7.5–8.3%, adjusted free cash flow at least $200 million.

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

• Tariff impacts (10%) are fully incorporated into forecasts, with limited expected impact.

• Management remains cautious due to inflation, FX volatility, and supply chain constraints.