Embraer (EMBR3) Investor presentation summary

Business overview and strategy

• Leading global manufacturer of jets up to 150 seats, with over 2,000 executive jets delivered in 70+ countries and 170+ airline customers in 90+ countries.

• Four main business segments: Commercial Aviation, Executive Aviation, Defense & Security, and Services & Support, plus the EVE urban air mobility initiative.

• Focus on profitable growth through efficiency, innovation, and next-generation product development, targeting substantial mid- and long-term expansion.

• Strategic investments in production capacity, new engine technologies, and MRO services to support backlog growth and market expansion.

• ESG commitments include carbon neutrality by 2040, increased SAF usage, and diversity targets in hiring and leadership.

Financial performance and outlook

• Net revenue grew from $4.2bn in 2021 to $7.6bn in 2025, with adjusted EBITDA margin reaching 14.4% in 2025.

• Adjusted EBIT margin improved to 11.1% in 2025, with free cash flow of $676m and ROIC above WACC, reflecting operational and financial improvements.

• Consensus estimates project revenues of $9.7bn and adjusted EBITDA of $1.3bn in 2026, with continued growth through 2028.

• Deleveraging achieved, with net debt/EBITDA ratio dropping to near zero by 2025 and strong liquidity position maintained.

• Backlog reached an all-time high of $31.6bn in 2025, well-diversified across business segments.

Commercial aviation

• E-Jets family leads the global market for jets up to 150 seats, with 2,402 orders and 1,943 deliveries.

• E2 jets offer industry-leading efficiency, lower emissions, and are positioned as the preferred complement to larger narrowbodies.

• Strong market share in North America for 70-90 seat jets and growing acceptance of E2 models post-pandemic.

• Significant replacement opportunities ahead for aging regional and small narrowbody aircraft globally.

• Commercial aviation backlog and revenue have shown steady growth, supporting long-term profitability.