Embraer (EMBR3) Q3 2025 earnings summary

Executive summary

• Achieved record-high revenues and backlog in 3Q25, with consolidated revenue reaching $2,004 million (up 18% year-over-year) and backlog at $31.3 billion (+38% yoy), driven by strong order intake in commercial and executive aviation, and robust demand in Service & Support and Defense & Security.

• Delivered 62 aircraft in Q3 2025, a 5% increase year-over-year, with commercial aviation deliveries up 25% and executive aviation stable; notable new orders included Avelo (50 E195-E2s plus 50 options) and LATAM (24 E195-E2s plus 50 options).

• Executive aviation achieved all-time high Q3 revenues of $580 million and delivered its 2,000th business jet.

• S&P upgraded credit rating to BBB, reflecting improved financial strength and market confidence.

• Focus on efficiency, innovation, and capacity expansion to support sustainable growth, with new MRO facilities and production upgrades underway.

Financial highlights

• Q3 2025 revenues reached $2,004 million, up 18% year-over-year; adjusted EBIT was $172 million (8.6% margin), compared to $147 million (8.7% margin) in Q3 2024, excluding last year’s one-time Boeing agreement.

• Adjusted net income was $54 million (2.7% margin), down from 13.1% last year due to the absence of the $150 million Boeing agreement and less favorable net financial results.

• Adjusted free cash flow was $300 million, supported by strong operating activities and lower accounts receivable.

• Net debt reduced to $439 million, with net debt/EBIT ratio at 0.5x, a significant improvement from 1.3x a year earlier.

• Dividend yield for 2025: 0.35%.

Outlook and guidance

• 2025 guidance reaffirmed: 77–85 commercial aircraft and 145–155 executive aircraft deliveries, $7–$7.5 billion in revenues, 7.5%–8.3% adjusted EBIT margin, and over $200 million in adjusted free cash flow.

• Guidance reflects supply chain risks for Q4, but management expects to finish the year at the high end of margin guidance if deliveries proceed as planned.

• Management continues to monitor supply chain constraints and global macroeconomic risks.

• U.S. import tariffs expected to total $60–$65 million for the year, with $27 million recognized year-to-date and efforts ongoing to reduce the final impact.