Embraer S.A. 4Q25 and Fiscal Year 2025 Earnings Summary
Business Context and Reporting Period
This Form 6-K reports the financial and operational results for Embraer S.A. for the fourth quarter and full fiscal year ended December 31, 2025. The filing was released on March 6, 2026. Embraer operates across Commercial Aviation, Executive Aviation, Defense & Security, and Services & Support segments. The company reported record annual revenues and deliveries for 2025.
Key Financial Metrics
| Metric | 4Q25 | FY2025 | FY2024 |
|---|---|---|---|
| Revenue | $2,652 million | $7,578 million | $6,395 million |
| Adjusted EBIT | $230.9 million | $656.8 million | $708.2 million |
| Adjusted EBIT Margin | 8.7% | 8.7% | 11.1% |
| Adjusted Net Income | $153.2 million | $252.9 million | $461.6 million |
| EPS (ADS Basic) | $0.45 | $1.92 | $1.92 |
| Adjusted Free Cash Flow (w/o Eve) | $738.3 million | $491.2 million | $675.6 million |
| Net Cash Position (w/o Eve) | $109.3 million | $109.3 million | ($110.7 million) |
| Backlog | $31.6 billion | $31.6 billion | $26.3 billion |
Material Changes vs. Prior Period
- Revenue Growth: Full-year revenue increased 18% year-over-year (YoY) to a record $7.578 billion. 4Q25 revenue rose 15% YoY.
- Segment Performance: Defense & Security revenue surged 36% YoY for the full year, and Executive Aviation grew 25% YoY. Commercial Aviation revenue was flat (-1%) in 4Q25 due to customer mix.
- Profitability: Adjusted EBIT margin for the full year was 8.7%, down from 11.1% in 2024, impacted by $54 million in U.S. import tariffs and one-off costs. However, margins exceeded guidance.
- Deliveries: Total aircraft deliveries reached 244 in 2025, an 18% increase from 206 in 2024. 4Q25 saw 91 deliveries.
- Liquidity: The company improved its net cash position (excluding Eve) from a deficit of $110.7 million in 2024 to a surplus of $109.3 million in 2025.
- Debt Profile: Average loan maturity (ex-Eve) extended significantly to 9.1 years in 4Q25 from 3.7 years in 4Q24.
Guidance, Outlook, and Risks
2026 Guidance:
- Deliveries: Commercial Aviation: 80–85 aircraft; Executive Aviation: 160–170 aircraft.
- Revenue: $8.2 billion to $8.5 billion.
- Adjusted EBIT Margin: 8.7% to 9.3% (assuming 10% U.S. import tariffs).
- Adjusted Free Cash Flow (w/o Eve): $200 million or higher.
Management Commentary & Risks:
- Tariffs: U.S. import tariffs totaled $27 million in 4Q25 and $54 million for the full year, negatively impacting margins.
- Investments: Embraer (stand-alone) invested $383.3 million in 2025, focusing on capacity expansion in Executive Aviation and Services & Support.
- Shareholder Returns: The company paid $568.7 million in total shareholder remuneration (dividends and Interest on Equity) for 2025.
- Risks: Future results depend on economic conditions, trade regulations, and the ability to deliver products on schedule. The filing notes that actual results may differ from projections.
Key Facts for Investor Verification
- Verify the impact of the 10% U.S. import tariffs on the 2026 margin guidance and whether this rate is fixed or subject to change.
- Confirm the sustainability of the 18% delivery growth rate given the record backlog of $31.6 billion.
- Review the reconciliation of Adjusted Net Income, which excludes significant deferred tax items ($136.5 million in 2025) and Eve-related results.
- Monitor the cash burn rate of the Eve subsidiary, which reported negative adjusted free cash flow of $174.5 million in 2025.
- Assess the execution of the liability management strategy that extended average debt maturity to 9.1 years.