Embraer (EMBR3) Q3 2025 earnings summary

Executive summary

• Achieved record-high backlogs across all divisions, with total backlog reaching $31.3 billion, up 38% year-over-year, 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 include Avelo (50 E195-E2s plus 50 options) and LATAM (24 E195-E2s plus 50 options), boosting commercial aviation backlog to $15.2 billion.

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

• S&P rating upgraded to BBB, reflecting improved financial strength.

Financial highlights

• Q3 2025 revenues reached $2,004 million, up 18% year-over-year.

• Adjusted EBIT for Q3 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.

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.

• 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.