Company Overview

Embraer S.A., along with its subsidiaries, is a global leader in the design, development, manufacturing, and sale of aircraft and systems. Incorporated in 1969 and headquartered in São Paulo, Brazil, the company has established itself as a prominent player in regional aviation. Embraer serves diverse markets across North America, Latin America, Asia Pacific, Europe, and other international regions, catering to the needs of commercial airlines, executive jet operators, and defense and security sectors.

The company operates through distinct business units: Commercial Aviation, Defense & Security, Executive Aviation, and Services & Support, with a focus on delivering customer satisfaction and innovative solutions.

Business Segments

Embraer's operations are strategically divided into key segments:

Commercial Aviation

This segment is responsible for the development, production, and sale of commercial jets. Embraer holds a significant market share in the regional aircraft category, particularly for aircraft with fewer than 150 seats, generating the maximum revenue for the company.

Defense & Security

This division focuses on developing and producing military aircraft and advanced radar systems. It also engages in research and development for software and integrated information systems, communications, border monitoring and surveillance, space systems/satellites, aircraft modernization, and command, control, communications, computer, intelligence, surveillance, and reconnaissance (C4ISR) systems.

Executive Aviation

Embraer designs, produces, and sells executive jets, a segment that has demonstrated particularly strong growth in recent financial periods.

Services & Support

This segment provides comprehensive support services, including field and technical assistance, flight operations solutions, aircraft modification, materials management, maintenance programs, and specialized training.

Other Segments

This category includes activities such as the supply of structural parts and hydraulic systems, production of agricultural crop-spraying aircraft, development and certification of electric Vertical Take-Off and Landing (eVTOL) aircraft, establishment of maintenance and service networks for eVTOLs, development and manufacturing of electrical propulsion systems, cybersecurity solutions, and various software and technical products.

Financial Performance

Market Capitalization

Embraer's market capitalization was reported as $10.88 billion as of September 11, 2025. Over the preceding year, its market cap saw a significant increase of 75.97%. Slight variations exist across different financial data sources, with figures like $11.02 billion and $11.016 billion (intraday) also reported for September 2025.

Recent Financial Results

#### Q2 2025 Performance

Embraer announced its second-quarter 2025 results, highlighting a record revenue of $2 billion and an adjusted EBIT margin of 10.5%, the highest in a decade. Total revenues for the quarter reached $1.82 billion, marking a 22% year-on-year increase and setting a new record for second-quarter revenue in the company's history.

Key Q2 2025 highlights:

- Earnings Per Share (EPS) stood at $0.71.

- The company maintained a firm order backlog of US$29.7 billion.

- Aircraft deliveries totaled 61 units, a 30% increase from 47 units in Q2 2024.

- The Executive Aviation segment's revenues experienced a substantial surge of 64% compared to Q2 2024.

- The Defense & Security, Services & Support, and Commercial Aviation segments also reported healthy performance, with year-on-year revenue increases of 18%, 13%, and 4%, respectively.

#### Q1 2025 Results

Total revenues for the first quarter of 2025 reached US$1,103 million, marking the best first quarter since 2016 and a 23% year-over-year (YoY) increase. Adjusted EBIT was reported at US$62.0 million, with a margin of 5.6% (compared to 4.8% in 1Q24).

#### 2024 Full Year Performance

For the full year 2024, Embraer reported total revenues of $6.4 billion, a 21% YoY increase, meeting the higher end of its guidance. Adjusted EBIT for the year was $708.2 million, representing an 11.1% margin. EBITDA reached $922 million, with a margin of 14.4%.

2025 Guidance

Embraer reiterated its financial guidance for 2025:

- Commercial Aviation Deliveries: Between 77 and 85 aircraft.

- Executive Aviation Deliveries: Between 145 and 155 aircraft.

- Total Company Revenues: Projected to be in the range of US$7.0 to US$7.5 billion.

- Adjusted EBIT Margin: Expected to be between 7.5% and 8.3%.

- Adjusted Free Cash Flow: Anticipated to be US$200 million or higher for the year.

Stock Performance Metrics

As of September 23, 2025, key stock performance metrics include:

- PE Ratio (TTM): 29.30

- EPS (TTM): 2.05

- 52-Week Range: $32.26 – $62.00

- Shares Outstanding: 183.39 million

- Dividend Yield (Forward): 0.08%

Credit Rating and Financial Health

In December, Moody's upgraded Embraer's credit rating from "Ba1" to "Baa3" with a stable outlook. This upgrade means all three major U.S. rating agencies now classify Embraer as Investment Grade (IG). Financially, Embraer ended 2024 with a net debt-to-EBITDA ratio of 0.1x, a significant improvement from 1.4x in 2023, indicating robust financial health.

Order Backlog and Market Position

Embraer's firm order backlog reached a record $29.7 billion in Q2 2025. The total company backlog increased by 40%, with the Defense & Security segment's backlog growing by 100% and Executive Aviation by 62%. This substantial backlog provides excellent revenue visibility and underscores Embraer's strong competitive position across its core markets.

Strategic Initiatives and Future Outlook

Embraer continues to prioritize innovation and expansion. Key initiatives include the development of electric vertical take-off and landing (eVTOL) aircraft through its subsidiary Eve. The company has also announced plans for a US$500 million investment in the U.S. over the next five years.

The company is scheduled to release its next earnings report on November 4, 2025. With its diversified portfolio spanning commercial, executive, and defense aviation, complemented by advancements in urban air mobility technologies, Embraer is strategically positioned to capitalize on the recovery in aerospace markets and capitalize on long-term growth trends within the aviation industry.