Embraer S.A.

Fourth-quarter revenue increased 15% to almost $3 billion. Q4 adjusted EBITDA was $298 million with an 11.3% margin, adjusted EBIT was $231 million with an 8.7% margin, and adjusted net income was $153 million. For full-year 2025, revenue was $7.6 billion, up 18%; adjusted EBITDA was $889 million with an 11.7% margin; adjusted EBIT was $657 million with an 8.7% margin; and adjusted net income was $253 million. The company delivered 91 aircraft in Q4 and 78 commercial jets and 155 executive jets for the full year, both in line with or at the high end of guidance. 2026 guidance is for Commercial Aviation deliveries of 80 to 85 aircraft, Executive Aviation deliveries of 160 to 170 jets, revenue of $8.2 billion to $8.5 billion, EBIT margin of 8.7% to 9.3%, and adjusted free cash flow without Eve of $200 million or higher.

Francisco Gomes Neto described 2025 as a year of strategy consolidation and said Embraer is seeing strength across all business units, supported by record orders, larger backlogs, and better production processes. He emphasized the E2 platform’s global relevance, strong executive jet demand, and defense momentum, while noting that production-chain improvements, digitalization, and AI tools should support stability in 2026 and beyond. His tone was confident and forward-looking, with repeated references to long-term growth potential and strategic partnerships in India and the U.S.

Antonio Carlos Garcia highlighted disciplined execution despite volatility, pointing to Q4 deliveries of 91 aircraft, record backlog of $31.6 billion, and 2025 top-line growth of 18% to $7.6 billion. He said 2025 adjusted EBITDA was $889 million, adjusted EBIT was $657 million, and adjusted free cash flow was $491 million; he also noted $738 million of Q4 adjusted free cash flow and a year-end $109 million net cash position. On capital allocation, he said stand-alone 2025 investment totaled $383 million, CapEx run-rate should remain near $400 million, and the company is focusing capital on higher-return areas like Executive Aviation and Service & Support. He also said shareholder remuneration totaled BRL 568 million in 2025, or BRL 0.78 per share.

Analysts focused on India, U.S. defense partnerships, tariffs, margins, deliveries, and cash flow. Management said India offers two paths: a defense MTA opportunity with Mahindra and a civil aviation partnership with Adani, with an RFP expected this year for defense and a potential jet rollout in India by 2028 if orders arrive in 2026. On the U.S. side, Embraer said its MOU with Northrop Grumman is aimed at adding autonomous boom refueling capability to the KC-390 as a complementary offering, but no timeline or deal size is defined. On tariffs and guidance, management said Embraer aircraft, engines and parts are exempt from the 10% tariff as of February 2024, though inventory already paid remains in the 2026 plan and will unwind over time; they said the guidance is conservative because of policy uncertainty.