By Brazil Stock Guide – Embraer (B3: EMBJ3; NYSE: EMBJ) reported net profit of R$447.5 million in the fourth quarter of 2025, up from R$263.8 million in the same period of 2024, as stronger aircraft deliveries and improved operating performance supported revenue growth.
Revenue totaled R$14.3 billion in the quarter, an increase of about 4% year over year. For the full year, revenue reached R$41.9 billion in 2025, rising 18% compared with 2024 and marking the highest annual revenue in the company’s history.
Adjusted EBIT reached R$1.25 billion in the fourth quarter, with a margin of 8.7%. For the full year, adjusted EBIT totaled R$3.6 billion, with a margin of 8.6%, slightly above the company’s internal targets.
Record backlog
One of the most important signals for investors came from Embraer’s order book. The company ended the year with a record backlog of US$31.6 billion, more than 20% higher than a year earlier, reflecting strong demand across nearly all business units.
Commercial aviation backlog grew 42% year over year, driven by continued demand for the E175 and E2 platforms, while defense and security orders increased 10%, supported by the KC-390 military transport aircraft.
Executive aviation also maintained steady expansion, with backlog growth of about 3% year over year.
Embraer delivered 91 aircraft in the fourth quarter, including 32 commercial jets, 53 executive jets and six defense aircraft.
For the full year, deliveries totaled 244 aircraft, representing an 18% increase compared with the 206 aircraft delivered in 2024. The growth reflects the normalization of production after supply-chain disruptions that affected the global aerospace industry in recent years.
Segment performance
Executive aviation was one of the strongest segments in the quarter, with revenue rising 8% year over year to R$4.1 billion as both volumes and prices increased.
Defense and security revenue climbed 34% to R$1.9 billion, mainly due to KC-390 deliveries and revenue recognition linked to contract progress.
Commercial aviation revenue declined about 10% year over year, reflecting a different mix of customers and aircraft deliveries during the period.
Services and support also remained a key profitability driver, with revenue rising 16% year over year to R$3.0 billion and margins expanding as aftermarket demand strengthened.
Free cash flow was another highlight. Embraer generated R$4.0 billion in adjusted free cash flow in the fourth quarter, largely due to higher aircraft deliveries and customer advance payments.
For the full year, free cash flow reached R$2.3 billion, helping the company end 2025 with net cash of R$601 million excluding Eve, its urban air mobility subsidiary.
Total consolidated cash stood at R$16 billion at the end of the quarter, providing the company with strong liquidity to support investment and production expansion.
Debt profile improves
The company also strengthened its balance sheet by extending the maturity of its debt.
The average maturity of Embraer’s loans increased to 9.1 years, compared with 3.7 years a year earlier, reflecting an active liability-management strategy.
Borrowing costs also declined across several currencies, including dollar- and real-denominated debt.
Guidance for 2026
Looking ahead, Embraer expects another year of growth.
The company forecasts commercial aircraft deliveries between 80 and 85 units in 2026, and executive jet deliveries between 160 and 170 units.
Revenue is projected to reach US$8.2 billion to US$8.5 billion, with an adjusted EBIT margin between 8.7% and 9.3%, assuming U.S. import tariffs remain around 10%.
Adjusted free cash flow is expected to reach at least US$200 million.
The aerospace manufacturer continues investing in production capacity and support services, including expansion projects in Brazil, Portugal and the United States aimed at meeting growing global demand for regional aircraft and maintenance services.
With a record backlog, improving cash generation and expanding defense orders, Embraer enters 2026 with one of the strongest operational pipelines in its history.
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