By Brazil Stock Guide – Embraer S.A. (B3: EMBJ3, NYSE: EMBJ) approved on November 6 a new share buyback program of up to 10.8 million ordinary shares, equivalent to around 1.5% of its free float. The initiative follows the release of strong third-quarter results and will rely on R$2.5 billion in available reserves. The program allows the company to hold, cancel, or reissue shares to meet obligations under its stock-based compensation plans.
Financial strength and timing
The buyback will run for 12 months, from November 7, 2025, to November 6, 2026, with purchases executed on B3 through BTG Pactual DTVM at market prices. Embraer’s board highlighted that the company’s balance sheet is robust enough to support the operation without affecting its ability to pay creditors or dividends. The move gives management flexibility to manage capital allocation amid steady cash generation and reduced leverage.
Equity-swap adds hedge layer
On the same day, the board — chaired by Raul Calfat — also approved an equity-swap agreement with Itaú Unibanco involving 10.9 million EMBJ3 shares, or about 1.5% of the company’s capital. The one-year contract will hedge Embraer’s exposure to fluctuations in its share-based incentive programs. The cost was set at CDI + 0.265% per year, with execution over 30 trading days and daily participation ranging from 1% to 25% of average volume. Margin calls will occur if losses exceed 30% of the notional amount.
Strategic signal to investors
Together, the buyback and the swap reflect a coordinated strategy to smooth stock-price volatility and support share value while managing incentive-plan costs. The board emphasized that both measures fit within Embraer’s financial discipline and do not alter the company’s governance or ownership structure. The dual move also signals management’s confidence in long-term fundamentals after a year of solid earnings and consistent cash flow generation.
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