Embraer (EMBR3) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $7.6 billion in 2025, up 18% year-over-year and above guidance, with a record backlog of $31.6 billion, supporting sustainable growth.

• Delivered 244 aircraft in 2025, an 18% increase from 2024, with all business units showing solid execution and strong growth in Defense & Security and Executive Aviation.

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

• E2 program consolidated as a benchmark in the small narrowbody segment with strong global sales.

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

Financial highlights

• Full-year revenue reached $7.6 billion, up 18% YoY and above guidance.

• Adjusted EBITDA for 2025 was $922 million (14.4% margin); adjusted EBIT was $708 million (11.1% margin).

• Adjusted net income for 2025 was $253 million (3.3% margin), down from $461 million in 2024.

• Adjusted free cash flow for 2025 was $491 million, exceeding guidance.

• Dividend yield for 2025 was 0.88%.

Outlook and guidance

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

• Revenue expected between $8.2–$8.5 billion, up 10% at midpoint.

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

• Adjusted Free Cash Flow guidance of $200 million or higher; midterm goal to convert 50% of EBITDA to Free Cash Flow.

• Guidance reflects a conservative approach due to policy uncertainty around U.S. tariffs.