Embraer (EMBR3) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $7.6B (+18% YoY) and record backlog of $31.6B (+20% YoY), with all business units growing and strong execution across segments.

• Delivered 244 aircraft in 2025 (+18% YoY), surpassing guidance, with notable growth in Defense & Security and Executive Aviation.

• Strategic partnerships in India and the U.S. reinforce long-term growth in commercial and defense aviation.

• Eve's eVTOL prototype completed its first flight and 28 missions, progressing toward 2027 certification.

• Focused on sales, efficiency, and investing in new technologies for long-term expansion.

Financial highlights

• Full-year 2025 revenue was $7.6B (+18% YoY), with Q4 revenue nearly $3B (+15% YoY), both above guidance.

• Adjusted EBITDA for 2025 was $922M (14.4% margin); adjusted EBIT was $708M (11.1% margin); adjusted net income was $253M (3.3% margin).

• Adjusted Free Cash Flow for 2025 was $491M, exceeding guidance.

• Dividend yield for 2025 was 0.88%; declared R$568.7M in shareholder remuneration.

• Net cash position at year-end was $109M, with leverage improved to net cash/EBITDA of 0.1x.

Outlook and guidance

• 2026 guidance: commercial aviation deliveries of 80–85 jets, executive aviation 160–170 jets; revenue expected between $8.2B–$8.5B (10% YoY growth at midpoint).

• EBIT margin forecasted at 8.7%–9.3%, implying ~$750M EBIT at midpoint.

• Adjusted Free Cash Flow guidance of $200M+ for 2026; midterm goal to convert 50% of EBITDA to Free Cash Flow.

• Guidance includes conservative assumptions on U.S. tariffs, with potential upside if exemptions persist.

• Growth expected in all segments, with focus on operational efficiency, backlog conversion, and new technologies.