Embraer reported financial results for the fourth quarter and full year ended December 31, 2025, delivering strong revenue growth and improved profitability driven by higher aircraft deliveries and strong performance in its executive aviation and services segments. The company also reported a record backlog, reflecting solid demand across commercial, defense, and executive aviation markets.
Revenue growth driven by higher aircraft deliveries
For the fourth quarter of 2025, Embraer reported:
Revenue: $2.73 billion, up ~19% year over year.
Adjusted EBIT: $347.4 million.
Adjusted EBIT margin: 12.7%
The strong revenue performance was driven primarily by higher aircraft deliveries in the commercial and executive aviation segments during the quarter.
For the full year 2025, Embraer reported:
Revenue: $6.4 billion, representing ~21% growth year over year.
Adjusted EBIT: $470.0 million.
Adjusted EBIT margin: 7.3%
The increase in annual revenue reflects stronger demand for regional jets, continued recovery in business aviation, and growth in services.
Earnings and Profitability
Embraer delivered improved profitability during the quarter:
Q4 2025
Net income (GAAP): $312 million
Diluted EPS: $0.42 per share
Full-year 2025
Net income: $390 million
Diluted EPS: $0.53 per share
Profitability improved due to higher delivery volumes and operational efficiency improvements across the manufacturing and supply chain network.
Aircraft deliveries increase sharply
Operational performance was strong during the quarter.
Q4 2025 aircraft deliveries
Total aircraft: 91
32 commercial jets
53 executive jets
6 defense aircraft
FY2025 aircraft deliveries
244 total aircraft
78 commercial jets
155 executive jets
Higher executive jet deliveries played a major role in driving revenue growth and margin expansion.
Record backlog highlights strong future demand
One of the most important indicators of Embraer’s future revenue pipeline is its order backlog.
At the end of Q4 2025, Embraer reported:
Total backlog: $31.6 billion, the highest in the company’s history
The backlog includes orders across several segments:
Commercial aviation (E-Jet and E2 families)
Executive aviation (Phenom and Praetor jets)
Defense programs including the KC-390 Millennium
Long-term services and maintenance contracts.
A strong backlog provides revenue visibility for multiple years.
Segment Performance
Commercial Aviation
Demand for Embraer’s E175 and E195-E2 aircraft remained strong as airlines expand regional routes and replace older fleets with more fuel-efficient jets.
Executive Aviation
The Phenom 300 remained one of the most delivered light jets globally, supporting strong growth in the executive aviation segment.
Defense & Security
The KC-390 Millennium transport aircraft continued to gain traction with international defense customers, supporting long-term backlog expansion.
Services & Support
The services segment benefited from growing global fleets and long-term maintenance contracts.
Cash flow and financial position
Embraer generated solid cash flow during the year:
Adjusted free cash flow: $520 million for FY2025
Net debt: reduced compared with the prior year, reflecting stronger cash generation.
The improvement in cash flow was driven by higher deliveries and better working capital management.
Management Commentary
Management highlighted strong operational momentum and improving profitability.
Key points emphasized by executives:
Continued ramp-up in aircraft production
Expanding demand for regional jets and business aviation
Growing defense contracts globally.
Leadership also noted that supply-chain conditions have improved significantly compared with prior years, allowing Embraer to increase production volumes.
Outlook
For 2026, Embraer expects continued growth supported by strong backlog and production ramp-up.
Key expectations include:
Commercial aircraft deliveries: 72–80 jets
Executive jet deliveries: 145–155 aircraft
Revenue: expected to reach $7.0–$7.5 billion.
The outlook reflects continued recovery in commercial aviation and strong demand for business jets.
Key takeaways
1. Strong delivery momentum
Higher aircraft deliveries drove significant revenue growth during the quarter.
2. Record backlog provides multi-year visibility
A $31.6B backlog secures production pipelines for several years.
3. Executive aviation driving margins
Business jets typically carry higher margins than commercial aircraft, supporting profitability.
4. Defense programs becoming increasingly important
The KC-390 aircraft is gaining global traction, providing diversification beyond commercial aviation.
Bottom line
Embraer’s Q4 and FY2025 results highlight a company benefiting from strong global demand for regional jets and business aviation aircraft. With record backlog, rising deliveries, and improving profitability, Embraer appears well positioned to continue its growth trajectory as the aviation industry expands in the coming years.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet news channel.
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