Embraer (EMBR3) Q4 2025 earnings summary

Executive summary

• Achieved record revenue and backlog in 2025, with all business units performing strongly and double-digit growth across segments, supporting sustainable long-term expansion.

• Delivered 244 aircraft in 2025, an 18% increase from 2024, with strong growth in Defense & Security and Executive Aviation.

• Strategic partnerships in India and the U.S. reinforce growth potential, especially in commercial and defense aviation.

• Focused on sales, efficiency, and investing in digitalization, AI, and new technologies for future production stability.

• Ended 2025 with a record order backlog of $31.6B, up 20% year-over-year.

Financial highlights

• Full-year 2025 revenue reached $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 $708M (11.1% margin); adjusted net income $253M (3.3% margin).

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

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

• Dividend yield for 2025 was 0.88%.

Outlook and guidance

• 2026 guidance: commercial aviation deliveries of 80–85 jets, executive aviation 160–170 jets.

• Revenue forecast: $8.2B–$8.5B (+10% YoY at midpoint); adjusted EBIT margin 8.7%–9.3%.

• Adjusted Free Cash Flow guidance: $200M or higher.

• Guidance includes conservative assumptions on U.S. tariffs and will be updated quarterly.