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olivLaw · US equity research

Embraer S.A. EMBJ

Aircraft · SIC 3721 · Vertical: Aircraft (SIC 3721)

78.52USD+3.99% · 1 dayClose 04 Nov 2026

Embraer is one of the world's largest makers of jets, focused on commercial aviation, executive aviation, defense and security, and support services. The company closed fiscal 2025 with revenue of US$7.6 billion, and its firm order backlog reached US$31.6 billion, a major exposure to the global aerospace cycle and defense spending.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Embraer S.A. (EMBJ) stock was 78.52 USD (+3.99% on the day), with market capitalisation 56.8 bn USD, P/E 163.6 on diluted EPS of 0.48 USD over the last 12 months, beta 1.05, 52-week range 53.82–79.89 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
56.8 bn USD
shares as of 31 Dec 2025
P/E (TTM)
163.6
Diluted EPS TTM 0.48 · TTM to 31 Dec 2025
E/P (TTM)
0.61%
TTM to 31 Dec 2025
Dividend yield
unavailable
Beta (2y)
1.05
Volatility (1y) 42%
52-week range
53.8279.89

Price history

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Technical reading

RSI (14)
63.3
strong (55–70)
Bollinger (20, 2)
68.58 – 76.92
above the upper band · %B 1.19 · band width 11.5%
SMA 50 / 200
73.95 / 67.67
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.57 / -0.12
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+4.3%−1.1%+5.4 pp—
3 months+7.9%−0.5%+8.3 pp—
6 months+14.8%+4.4%+10.4 pp—
Year to date+22.0%+12.3%+9.7 pp—
1 year+26.5%+13.5%+13.0 pp−52.4%
3 years+418.3%+76.4%+341.9 pp−20.7%
5 years+367.7%+63.7%+304.0 pp—
Max drawdown (1y)
−32.6%
27 Jan 2026 → 10 Jun 2026
Max drawdown (5y)
−54.5%
31 Dec 2021 → 11 Jul 2022
Compound annual growth (5y)
+36.1%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 100 percentile of its own 5-quarter history (min 66.5, median 80.2, max 134.1; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue5.1 bn5.5 bn3.8 bn4.2 bn4.5 bn5.3 bn6.4 bn7.6 bn
Revenue YoY+99.1%+7.7%−31.0%+11.3%+8.2%+16.0%+21.4%+18.5%
Net income-178.2 m-322.3 m-731.9 m-44.7 m-185.4 m164.0 m352.5 m351.9 m
Net income YoY−167.5%unavailableunavailableunavailableunavailableunavailable+114.9%−0.2%
Diluted EPS-0.24-0.44-0.99-0.06-0.250.220.480.48
Diluted EPS YoY−166.7%unavailableunavailableunavailableunavailableunavailable+118.2%0.0%
net %-3.5%-5.9%-19.4%-1.1%-4.1%3.1%5.5%4.6%
Free cash flow953.3 m609.3 m-1.4 bn413.6 m615.1 m378.3 m670.8 m682.8 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
1.9 bn USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
3.8 bn USD
Total assets
12.9 bn USD
Debt / equity
unavailable
Current ratio
1.50x
ROE
9.8%
ROA
2.8%
FCF margin
9.0%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
5.3 bn
2024
6.4 bn
2025
7.6 bn

SEC (XBRL)· 30 Mar 2026verified

Cost of revenue
2023
4.4 bn
2024
5.2 bn
2025
6.2 bn

SEC (XBRL)· 30 Mar 2026verified

Gross profit
2023
909.6 m
2024
1.2 bn
2025
1.3 bn

SEC (XBRL)· 30 Mar 2026verified

Research & development
2023
90.3 m
2024
55.0 m
2025
74.4 m

SEC (XBRL)· 30 Mar 2026verified

Operating income
2023
314.5 m
2024
667.5 m
2025
607.6 m

SEC (XBRL)· 30 Mar 2026verified

Depreciation & amortisation
2023
—
2024
—
2025
—

SEC (XBRL)· 31 Mar 2023verified

EBITDA
2023
—
2024
—
2025
—

SEC (XBRL)· 31 Mar 2023derived

Interest expense
2023
321.9 m
2024
415.6 m
2025
615.0 m

SEC (XBRL)· 30 Mar 2026verified

Pre-tax income
2023
120.7 m
2024
557.0 m
2025
267.6 m

SEC (XBRL)· 30 Mar 2026verified

Income tax
2023
-43.6 m
2024
202.4 m
2025
-91.4 m

SEC (XBRL)· 30 Mar 2026verified

Net income
2023
164.0 m
2024
352.5 m
2025
351.9 m

SEC (XBRL)· 30 Mar 2026verified

Diluted EPS
2023
0.22
2024
0.48
2025
0.48

SEC (XBRL)· 30 Mar 2026verified

Weighted average diluted shares
2023
734.6 m
2024
734.6 m
2025
732.4 m

SEC (XBRL)· 30 Mar 2026verified

Balance sheet · USD

Cash
2023
1.6 bn
2024
1.6 bn
2025
1.9 bn

SEC (XBRL)· 30 Mar 2026verified

Inventories
2023
2.6 bn
2024
2.9 bn
2025
3.3 bn

SEC (XBRL)· 30 Mar 2026verified

Current assets
2023
6.1 bn
2024
6.5 bn
2025
7.2 bn

SEC (XBRL)· 30 Mar 2026verified

Property, plant & equipment, net
2023
1.8 bn
2024
1.9 bn
2025
2.1 bn

SEC (XBRL)· 30 Mar 2026verified

Total assets
2023
10.8 bn
2024
11.8 bn
2025
12.9 bn

SEC (XBRL)· 30 Mar 2026verified

Accounts payable
2023
787.0 m
2024
966.3 m
2025
1.1 bn

SEC (XBRL)· 30 Mar 2026verified

Short-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 09 Apr 2021verified

Long-term debt
2023
—
2024
—
2025
—

SEC (XBRL)· 09 Apr 2021verified

Current liabilities
2023
3.7 bn
2024
4.4 bn
2025
4.8 bn

SEC (XBRL)· 30 Mar 2026verified

Total liabilities
2023
7.7 bn
2024
8.5 bn
2025
9.1 bn

SEC (XBRL)· 30 Mar 2026verified

Equity
2023
3.0 bn
2024
3.3 bn
2025
3.8 bn

SEC (XBRL)· 30 Mar 2026verified

Shares outstanding at year end
2023
734.6 m
2024
734.6 m
2025
722.8 m

SEC (XBRL)· 30 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
617.0 m
2024
871.2 m
2025
870.0 m

SEC (XBRL)· 30 Mar 2026verified

Capex
2023
238.7 m
2024
200.4 m
2025
187.2 m

SEC (XBRL)· 30 Mar 2026verified

Free cash flow
2023
378.3 m ≈
2024
670.8 m ≈
2025
682.8 m ≈

SEC (XBRL)· 30 Mar 2026derived

Investing cash flow
2023
-447.6 m
2024
-599.7 m
2025
-611.7 m

SEC (XBRL)· 30 Mar 2026verified

Financing cash flow
2023
-348.7 m
2024
-335.7 m
2025
146.1 m

SEC (XBRL)· 30 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
18.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
18.6%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
15.0%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-9.0%
computed by olivLawFY 2025
Net income growth (YoY)
-0.2%
computed by olivLawFY 2025
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
0.0%
computed by olivLawFY 2025
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
1.8%
computed by olivLawFY 2025

Profitability

Gross margin
17.5%
computed by olivLawFY 2025
EBITDA margin
unavailable
input data missing
EBIT margin
8.0%
computed by olivLawFY 2025
Net margin
4.6%
computed by olivLawFY 2025
FCF margin
9.0%
computed by olivLawFY 2025

Returns

ROE
10.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
2.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
unavailable
input data missing
ROCE
7.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
1.0x
computed by olivLawFY 2025

Liquidity

Current ratio
1.5x
computed by olivLawbalance sheet at 31 Dec 2025
Quick ratio
0.8x
computed by olivLawbalance sheet at 31 Dec 2025
Cash ratio
0.4x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
870.0 m USD
computed by olivLawFY 2025
Capital expenditure
187.2 m USD
computed by olivLawFY 2025
Free cash flow
682.8 m USD
computed by olivLawFY 2025
FCF conversion
194.0%
computed by olivLawFY 2025
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
181 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Days payables outstanding
61 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
56.8 bn USD
computed by olivLawbalance sheet at 31 Dec 2025
Enterprise value
unavailable
input data missing
Market cap / net income TTM
161.3x
computed by olivLawFY 2025
P/E (TTM)
163.6x
computed by olivLawFY 2025
Earnings yield
0.6%
computed by olivLawFY 2025
P/B
16.5x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
7.5x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
83.1x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
FCF yield
1.2%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
unavailable
input data missing

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 50.0% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

78.52 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 56.8 bn USD

Key indicators

Market capitalisation
56.8 bn USD
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
163.6x
computed by olivLawFY 2025
P/B
16.5x
computed by olivLawbalance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
ROE
10.8%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
4.6%
computed by olivLawFY 2025
Revenue growth (YoY)
18.5%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Share count (cover of the latest filing), as of: 31 Dec 2025
Source: SEC (XBRL)published 30 Mar 2026
verified 333

Score by group

50% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Aircraft (SIC 3721)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 50.0% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality4.6%89 (vs peers)13%
FCF conversion · Quality194.0%100 (on a fixed band)13%
Revenue CAGR 3Y · Growth18.6%100 (on a fixed band)17%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet1.0x0 (on a fixed band)13%
Current ratio · Balance sheet1.5x58 (on a fixed band)8%
P/E (TTM) · Valuation163.6x0 (on a fixed band)21%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation1.2%15 (on a fixed band)17%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet23/100 · 2/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality94/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation7/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

EMBRAER S.A. (EMBJ). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: revenue 7.6 bn USD in 2025; YoY growth 18.5%; net margin 4.6%; ROE 10.8%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (score weight coverage: 50.0% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 4.6%
  • FCF conversion: 194.0%
  • Revenue CAGR 3Y: 18.6%

What contradicts it

  • Interest coverage: 1.0x
  • P/E (TTM): 163.6x
  • FCF yield: 1.2%

Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Aircraft (SIC 3721) · same industry (4-digit SIC) · compared with 10 companies

Multiples and returns vs the median

P/E
163.6x
vertical median —
EV/EBITDA
—
vertical median —
P/S
7.5x
vertical median 10.9x
below median (−31.0%)
P/B
16.5x
vertical median 1.7x
above median (+882.7%)
ROE
10.8%
vertical median -56.4%
above median
Net margin
4.6%
vertical median -611.0%
above median
EBIT margin
8.0%
vertical median -398.9%
above median
Revenue YoY
18.5%
vertical median 51.7%
below median (−64.2%)
Net debt/EBITDA
—
vertical median —
Dividend yield
—
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
BAThe Boeing Company140.3 bn18.6—8.1%+34.5%−6% / −24%
EMBJEmbraer S.A.56.8 bn163.610.8%4.6%+18.5%+27% / +418%
AVAVAerovironment, Inc.5.8 bn—-4.6%-10.1%+140.9%−59% / −18%
JOBYJoby Aviation, Inc.5.0 bn—-65.9%-755.1%+39,183.1%−65% / −15%
ACHRArcher Aviation Inc.3.2 bn—-44.8%-11,589.9%unavailable−47% / −31%
BETABETA Technologies, Inc.951.1 m—-46.8%-1,007.8%+136.0%−7% / unavailable
AIROAIRO Group Holdings, Inc.171.0 m—-3.6%-23.9%+4.6%−37% / unavailable
MOBMobilicom Limited36.5 m—-369.2%-705.4%+5.8%−58% / +115%
UAVSAgEagle Aerial Systems Inc.21.8 m—-106.1%-276.5%−4.3%−74% / −100%
DUKRDUKE Robotics Corp.11.2 m—-66.6%-611.0%+249.1%+1,382% / +3,160%
EVTLVertical Aerospace Ltd.————+51.7%−91% / −94%

1- and 3-year price returns: for EMBJ from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
52.05
Total return -34% · Per year -34%
91.59
Total return 17% · Per year 17%
137.39
Total return 75% · Per year 75%
3 years
61.73
Total return -21% · Per year -8%
121.13
Total return 54% · Per year 16%
197.84
Total return 152% · Per year 36%
5 years
73.23
Total return -7% · Per year -1%
160.20
Total return 104% · Per year 15%
284.89
Total return 263% · Per year 29%
What moves the 3-year price the most
  • Exit P/E± 30.28
  • Net margin± 21.20
  • Annual revenue growth± 15.81
  • Annual dilution± 1.78

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Mar 2026; since then the company filed 6-K (02 Nov 2026), 6-K (30 Oct 2026), 6-K (23 Oct 2026).

In brief

Embraer is one of the world's largest makers of jets, focused on commercial aviation, executive aviation, defense and security, and support services. The company closed fiscal 2025 with revenue of US$7.6 billion, and its firm order backlog reached US$31.6 billion, a major exposure to the global aerospace cycle and defense spending 1.

SWOT

Strengths

  • Leading position in jets with up to 150 seats, with a significant share of accumulated deliveries since 2004 1.
  • Diversified portfolio across four segments, which reduces dependence on a single market 1.
  • The services segment provides relatively stable revenue, supported by long-term contracts and a wide service network 1.

Weaknesses

  • Revenue is geographically concentrated, with a large share from North America 1.
  • High dependence on a few large customers in commercial and executive aviation 1.
  • Heavy reliance on external suppliers for components, some of which are hard to replace 1.

Opportunities

  • Replacement of tactical transport aircraft nearing retirement could favor the KC-390 program 1.
  • Rising defense budgets and interest from allied countries could open new contracts 1.
  • Regional aviation development in India, Brazil, Turkey and Saudi Arabia could create additional demand 1.

Threats

  • A reduction or change in export financing could weaken the competitiveness of the aircraft 1.
  • A global economic downturn could reduce air travel demand and aircraft investment 1.
  • Supply chain disruptions and rising costs could affect margins 1.

Risks

  • Aircraft accidentshigh

    Any accident involving Embraer aircraft could affect the company's reputation and results, even when the cause lies outside its control 1.

  • Order cancellations and reschedulinghigh

    Customers may cancel or defer deliveries, especially during an economic downturn, which would reduce revenue, cash flow and backlog 1.

  • Government contractsmedium

    Government contracts can be modified or terminated, and budget delays can postpone payments and deliveries 1.

  • Dependence on export financingmedium

    Lower support from Brazilian export financing could reduce the competitiveness of aircraft in markets sensitive to financing costs 1.

  • Currency depreciation and inflationmedium

    Most revenue is in U.S. dollars, but some costs and assets are in reais, so exchange rate and inflation swings can affect results 1.

Investment thesis

What would need to be true (bull case)

  • If the backlog converts into steady deliveries, the company could benefit from high revenue visibility over several years 1.
  • The defense segment could gain share as countries renew tactical transport fleets, especially with the KC-390 1.
  • Aging of the existing fleet could support demand for services, parts and training, with steadier margins 1.

What would break the thesis

  • Dependence on a few large commercial aviation customers could make revenue vulnerable if one of them reduces orders 1.
  • If state-supported export financing shrinks, the competitiveness of the aircraft could decline against rivals 1.
  • Persistent supply chain problems could delay deliveries and affect contract execution 1.

What to watch

  • Pace of commercial aviation deliveries and the evolution of the firm order backlogQ1 2027
  • Evolution of Brazilian export financing and the share of deliveries it supports2027
  • New KC-390 and A-29 contracts and options for additional aircraftnext 10-K
  • Supply chain conditions in executive aviation and delivery pace of Phenom and Praetor jetsQ1 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 30 Mar 2026; since then the company filed 6-K (02 Nov 2026), 6-K (30 Oct 2026), 6-K (23 Oct 2026).

The business

Embraer, a publicly held company incorporated in Brazil, evolved from a government-controlled firm created to produce aircraft for the Brazilian Air Force into a manufacturer with global customers. The company reports four segments: Commercial Aviation, Executive Aviation, Defense & Security and Services & Support, plus other activities 1. In 2025 it delivered 294 aircraft, of which 78 were in commercial aviation, and revenue was US$7.6 billion, almost all denominated in U.S. dollars 1.

Geographically, North America generated 58.7% of 2025 revenue, followed by Europe with 24.3% and Brazil with 8.3%, showing heavy reliance on a few mature markets 1. The company relies on long-term customer relationships and a service network supporting more than 4,391 Embraer aircraft, which helps stabilize revenue 1.

The company describes its strategy as consistent execution of its business plan, operational efficiency, partnerships and innovation, alongside ESG targets such as carbon neutrality in operations by 2040 1.

Segments

Commercial Aviation

The segment includes the E-Jets and E2 regional jet families, generally seating up to 150 passengers. It accounted for 31.3% of 2025 revenue and delivered 78 aircraft in the year, and it is the segment most dependent on a few large customers 1.

Executive Aviation

The segment includes Phenom, Praetor and Lineage business jets serving high net worth individuals, fleet operators and corporate flight departments. It accounted for 29.1% of 2025 revenue, and deliveries rose 19.2% from 2024 to 155 units 1.

Defense & Security

The segment includes the KC-390 Millennium tactical transport and the A-29 Super Tucano light attack aircraft, plus radars, command and control systems and cybersecurity. It accounted for 13.0% of 2025 revenue, and demand is supported by higher global defense spending 1.

Market context

Embraer states it is the largest maker of jets with up to 150 seats, holding a 30% share of accumulated deliveries since 2004 according to Cirium data 1. Aviation demand is driven by long-term trends in passenger and cargo traffic, airline profitability and financing availability, so cyclicality remains a central factor 1.

The company points to fleet replacement opportunities in North America and Europe and growth potential in India, Brazil, Turkey and Saudi Arabia, particularly in the sub-150-seat segment 1. The total backlog of 1,001 aircraft at the end of 2025 provides visibility on future deliveries 1.

Trends

  • Higher defense demandtailwind

    The geopolitical environment has increased global defense spending, expanding the customer base of the Defense & Security segment. The 2025 KC-390 contracts with Sweden and Portugal illustrate this effect 1.

  • Export financing under pressureheadwind

    A significant part of commercial aircraft deliveries benefits from state-supported export financing. If this program is reduced or its conditions change, the competitiveness of the aircraft could decline 1.

  • Fragile supply chainsheadwind

    Parts shortages continue to limit delivery pace, although conditions are gradually improving in executive aviation. The company relies on suppliers with limited capacity for key components 1.

  • Long-term services demandtailwind

    As the fleet ages, demand for maintenance, parts and training grows. The Services & Support segment could become more profitable as this demand increases 1.

Competitive position

The analyzed source does not name direct competitors. The company is compared with regional and business jet makers, and government export financing is a competitiveness factor, especially under the Aircraft Sector Understanding framework 1.

Competitiveness depends on price, quality and financing terms. If other manufacturers benefit from more generous government packages, Embraer aircraft could lose appeal 1.

  • Regional and commercial jet makers (not named in source)

    The source does not name competitors; it refers generally to aircraft makers receiving government financing support 1.

  • Aircraft makers from non-ASU signatory states

    The source notes that manufacturers from countries not party to the ASU agreement may offer attractive financing packages 1.

  • Other business jet suppliers

    The executive aviation segment competes with other manufacturers in the business jet market, none named in the source 1.

  • Defense and security systems suppliers

    The defense segment competes with companies in command systems, radars and military aviation, none named in the source 1.

News & filings

In the press

Sources

  1. [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / Embraer S.A. · 30 Mar 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.