Aircraft Orders & Deliveries
Embraer Posts Record Q3 2025 Revenue and Backlog Growth
Embraer reports record Q3 revenue of $2B and $31.3B backlog, supported by strong deliveries and credit upgrades in 2025.
Embraer‘s Q3 2025: Soaring Revenues and a Record-Breaking Backlog
In an impressive display of operational strength and market confidence, Brazilian aerospace giant Embraer has reported its third-quarter 2025 results, painting a picture of robust health and a promising future. The company not only achieved its highest-ever third-quarter revenue but also saw its firm order backlog swell to an unprecedented US$31.3 billion. These figures are not just numbers on a spreadsheet; they represent a significant vote of confidence from the global aviation market and underscore Embraer’s solid positioning across its diverse business segments.
The aerospace industry is a complex ecosystem, sensitive to global economic shifts, geopolitical tensions, and technological advancements. For a major player like Embraer, a strong quarterly performance is a testament to strategic planning, product excellence, and resilient operational execution. The positive results from Commercial Aviation, Executive Aviation, and Defense & Security signal a well-balanced and effective business model. This performance is particularly noteworthy as it allows the company to confidently reiterate its full-year guidance for 2025, signaling stability and predictable growth to investors and partners alike.
As we delve into the specifics of the quarter, we’ll explore the key drivers behind this success. From the surge in aircraft deliveries to the strengthening of its financial position, recognized by top credit rating agencies, Embraer’s Q3 2025 is a case study in navigating the competitive aerospace landscape. The record-high backlog provides a clear runway for future revenues, while strong free cash flow demonstrates efficient management and financial discipline. These elements combined suggest that Embraer is not just flying steady but is climbing to new altitudes.
A Deep Dive into the Financials
The third quarter of 2025 was a landmark period for Embraer, with revenues reaching an all-time third-quarter high of US$2.004 billion. This represents a substantial 18% increase compared to the same period last year. The growth was not isolated to a single division but was broad-based, highlighting the strength of the company’s diversified portfolio. The Commercial Aviation division was a standout performer, with revenues surging by 31% year-over-year, closely followed by the Defense & Security division, which posted an impressive 27% growth. This dual-engine growth demonstrates healthy demand for both Embraer’s commercial E-Jets family and its advanced defense solutions.
Profitability and cash flow metrics further solidify the positive financial narrative. The company reported an adjusted EBIT of US$172.0 million, translating to a healthy adjusted EBIT margin of 8.6%. While this is a strong figure, it’s worth noting the impact of external economic factors. U.S. import tariffs amounted to US$17 million during the quarter, which trimmed the adjusted EBIT margin by 85 basis points. Despite this, the company’s ability to generate such strong profits speaks to its operational efficiency and pricing power in the market.
Perhaps one of the most telling indicators of Embraer’s financial health is its adjusted free cash flow, which stood at a remarkable US$300.3 million for the quarter (excluding its Eve Air Mobility unit). This substantial cash generation was attributed to a higher volume of aircraft deliveries and disciplined management of accounts receivables. Strong free cash flow is critical for any capital-intensive business like aerospace, as it provides the necessary liquidity to fund research and development, invest in new technologies, and navigate economic uncertainties without taking on excessive debt.
Embraer’s firm order backlog reached an all-time high of US$31.3 billion in Q3 2025, signaling robust long-term demand and future revenue visibility.
Operational Excellence and Market Confidence
Financial success is built on a foundation of operational performance, and Embraer’s Q3 2025 delivery numbers reflect a well-oiled production machine. The company delivered a total of 62 aircraft during the quarter, a 5% increase from the 59 aircraft delivered in the same period in 2024. The deliveries were balanced across its main aviation segments, with 20 commercial jets and 41 executive jets handed over to customers. The commercial deliveries included 13 of the newer, more efficient E2 family jets, indicating a successful market transition to its latest-generation aircraft. In the defense sector, the delivery of one KC-390 Millennium tactical transport aircraft further cemented its role as a key supplier for military air mobility.
The most significant indicator of future success is the company’s firm order backlog, which climbed to a record US$31.3 billion. A backlog represents firm commitments from customers for future deliveries, providing a clear and predictable revenue stream for years to come. This unprecedented figure is a powerful endorsement of Embraer’s product line, from the versatile E-Jets that connect regional hubs to the luxurious Praetor executive jets and the multi-mission C-390 Millennium. It demonstrates that airlines, private operators, and governments around the world are betting on Embraer’s technology and reliability for their future fleet needs.
This strong financial and operational performance has not gone unnoticed by the financial community. Major credit rating agencies have responded with significant votes of confidence. S&P Global Ratings upgraded Embraer’s credit rating to “BBB,” moving it two notches above the investment-grade threshold. Concurrently, both Fitch Ratings and Moody’s revised their outlooks for the company from stable to positive, while maintaining their investment-grade ratings. These upgrades and positive outlooks are crucial, as they lower the company’s cost of borrowing, increase its access to capital markets, and signal to investors that Embraer is a financially stable and creditworthy enterprise.
Looking Ahead: Guidance and Future Outlook
Buoyed by the strong third-quarter results, Embraer’s leadership has confidently reiterated its full-year guidance for 2025. This act of reaffirmation is a strong signal of management’s belief in the company’s trajectory and its ability to meet its targets for the remainder of the year. The company projects delivering between 77 and 85 commercial aircraft and between 145 and 155 executive jets. On the financial front, the guidance points to total revenues in the range of US$7.0 to US$7.5 billion, with an adjusted EBIT margin between 7.5% and 8.3%.
Furthermore, the company anticipates generating an adjusted free cash flow of US$200 million or higher for the full year. Meeting these targets would cap a year of significant achievement and solidify the company’s recovery and growth phase. This forward-looking confidence, backed by a record backlog and strong operational momentum, positions Embraer favorably against its competitors. It allows the company to plan for the long term, investing in innovation and sustainable aviation technologies that will define the future of flight.
The implications of this strong performance extend beyond Embraer’s own balance sheet. A healthy Embraer is vital for the global aviation supply chain and for promoting competition and innovation in the regional and mid-size jet markets. As airlines continue to modernize their fleets with more fuel-efficient and passenger-friendly aircraft, Embraer’s E2 family is perfectly positioned to meet this demand. The consistent growth in its executive and defense segments further diversifies its revenue streams, making the company more resilient to sector-specific downturns and poised for sustained, balanced growth in the years ahead.
Concluding Section
In summary, Embraer’s third-quarter 2025 performance is a clear indicator of a company firing on all cylinders. The combination of record-breaking revenue, an unprecedented order backlog, and robust free cash flow paints a picture of exceptional financial health and operational prowess. The upgrades from credit rating agencies serve as an external validation of the company’s solid strategy and execution, reinforcing its position as a top-tier, investment-grade player in the global aerospace industry. The strong performance across all major divisions, Commercial, Executive, and Defense, highlights the success of its diversified business model.
Looking forward, the future appears bright. With a confirmed guidance for the full year and a backlog that secures production for years to come, Embraer is on a stable flight path toward sustained growth. The company’s focus on its next-generation E2 commercial jets and its continued innovation in executive and defense aviation will likely fuel its momentum. As the aviation industry continues its push towards greater efficiency and sustainability, Embraer’s modern product portfolio positions it as a key partner for airlines and operators worldwide, ensuring its relevance and success in the dynamic skies of tomorrow.
FAQ
Question: What were the main highlights of Embraer’s Q3 2025 financial results?
Answer: Embraer reported its highest-ever third-quarter revenue at US$2.004 billion, an 18% year-over-year increase. The company also achieved a record-high firm order backlog of US$31.3 billion, generated US$300.3 million in adjusted free cash flow, and received a credit rating upgrade to “BBB” from S&P.
Question: How many aircraft did Embraer deliver in the third quarter of 2025?
Answer: Embraer delivered a total of 62 aircraft in Q3 2025. This included 20 commercial jets (13 E2s and 7 E1s), 41 executive jets (23 light and 18 medium), and 1 KC-390 Millennium defense aircraft.
Question: What is Embraer’s financial guidance for the full year 2025?
Answer: Embraer reiterated its 2025 guidance, projecting commercial aircraft deliveries between 77 and 85, executive aviation deliveries between 145 and 155, total revenues between US$7.0 and US$7.5 billion, and an adjusted free cash flow of US$200 million or higher.
Question: Why is a large order backlog significant for a company like Embraer?
Answer: A large firm order backlog, like Embraer’s record US$31.3 billion, is significant because it represents confirmed future orders from customers. This provides excellent visibility into future revenues, ensures production stability, and demonstrates strong market demand and confidence in the company’s products.
Sources
Photo Credit: Embraer
Aircraft Orders & Deliveries
Boeing and Icelease Agree on Up to Three 767-300BCF Aircraft
Icelease signs for up to three Boeing 767-300BCF aircraft, with conversions at ST Engineering Singapore starting Q1 2027.
The Boeing Company and aircraft lessor Icelease have finalized an agreement for up to three Boeing 767-300 Boeing Converted Freighter (BCF) aircraft, marking the leasing firm’s expansion into the medium widebody cargo market.
Announced in a press release on November 2, 2026, the transaction includes one firm order and options for two additional conversions. The aircraft will join the managed cargo portfolio of IAT Leasing, a Dublin-based sister company to Icelease.
Conversion timeline and operational details
The formal signing ceremony for the agreement took place on October 22, 2026, during the Cargo Facts Symposium. The physical conversion work will be executed at ST Engineering’s airframe maintenance, repair, and overhaul (MRO) facilities located in Singapore.
Induction of the first Boeing 767-300 aircraft for conversion is scheduled for the first quarter of 2027. Delivery of the completed Boeing 767-300BCF to Icelease and IAT Leasing is expected to follow in the second quarter of 2027. The Boeing Converted Freighter programs are managed by The Boeing Company’s Global Services division.
Lindsey Douglas, Vice President of Cabin, Modifications, Maintenance and Digital Services at The Boeing Company, stated that the agreement underlines the continued collaboration between the two companies to meet global cargo demand.
Sigthor Einarsson, Managing Partner at Icelease, noted the strategic importance of the deal for the lessor’s broader fleet strategy.
“This agreement with Boeing to convert up to three Boeing 767 aircraft marks an important milestone for both Icelease and its Dublin-based sister company IAT Leasing,” Einarsson said.
Icelease and IAT Leasing’s growing cargo portfolio
The Boeing 767-300BCF order builds upon an established relationship between the manufacturer and the lessor. Icelease, an aircraft leasing company with a 21-year history, specializes in aircraft acquisitions, leasing, operations, finance, and investor relations. The firm was originally formed as a spinoff from Icelandair in 2005.
On November 14, 2021, Icelease placed an order for 11 Boeing 737-800 Boeing Converted Freighter (737-800BCF) aircraft during the Dubai Airshow. That order established Icelease as the launch customer for a new conversion line at Boeing’s London Gatwick MRO facility.
The newly ordered widebody freighters will be managed by IAT Leasing. Incorporated in late 2023, IAT Leasing is owned by four equity partners. The Dublin-based entity has rapidly built a portfolio of approximately 40 narrowbody and widebody passenger and Cargo aircraft, which are leased to operators globally. The company’s current managed cargo portfolio already includes seven Boeing 737-800BCF aircraft.
“The history between Icelease and Boeing dates over 20 years and includes a multitude of new aircraft deliveries as well as cargo conversions,” Einarsson said. “The Boeing 767-300BCF will join the growing managed cargo aircraft portfolio of IAT Leasing, which already includes seven Boeing 737-800BCF and other freighters leased to various customers.”
Widebody freighter market outlook
The Boeing 767-300BCF is positioned to serve regional and long-haul cargo networks as a highly efficient medium widebody converted freighter. The aircraft offers a payload capacity of 57 tonnes and a maximum range of 3,300 nautical miles.
The Icelease order aligns with broader industry forecasts regarding long-term air cargo growth. On October 28, 2026, The Boeing Company released projections indicating that the global freighter fleet will exceed 4,000 airplanes by 2045. The manufacturer anticipates that air cargo traffic will double over the same period, providing a sustained demand environment for passenger-to-freighter conversion programs across both narrowbody and widebody platforms.
AirPro News analysis
We view Icelease’s transition from narrowbody to medium widebody conversions as a natural progression for lessors seeking to capture higher-yield cargo segments. While the Boeing 737-800BCF serves domestic and regional express networks effectively, the Boeing 767-300BCF provides the volume and range necessary for intercontinental e-commerce flows. By securing conversion slots at ST Engineering for 2027, Icelease and IAT Leasing are positioning their portfolio to absorb capacity demands as older widebody freighters face retirement toward the end of the decade. The decision to allocate these assets to the recently formed IAT Leasing also highlights the robust investor appetite for dedicated freighter leasing vehicles.
Photo Credit: Boeing
Aircraft Orders & Deliveries
AerCap Leases Two Boeing 777-300ERSF to Turkish Airlines
AerCap finalizes lease of two Boeing 777-300ERSF freighters to Turkish Airlines, with deliveries scheduled for 2027.
AerCap Holdings N.V. has finalized lease agreements with Turkish Airlines for two Boeing 777-300ERSF converted freighters, with deliveries scheduled between March and September 2027.
Announced on October 29, 2026, the transaction expands the Turkish flag carrier’s dedicated cargo capacity while utilizing Etihad Engineering’s maintenance, repair, and overhaul (MRO) facility in Abu Dhabi for the passenger-to-freighter (P2F) modifications. In a press release detailing the agreement, the Dublin-based aviation lessor emphasized the strategic alignment between the aircraft’s capabilities and the airline’s expanding freight network.
Expanding Turkish Airlines’ cargo operations
The agreement builds on an existing relationship between AerCap and Turkish Airlines, which operates a large international network requiring substantial dedicated cargo lift. The addition of the two widebody freighters is intended to support the carrier’s volume requirements on high-demand international routes.
Peter Anderson, Chief Commercial Officer at AerCap, stated that the aircraft will provide the airline with additional cargo capacity combined with the performance capabilities specific to the 777-300ERSF platform. Financial terms of the lease agreements, including the exact lease duration and the specific aircraft serial numbers, were not disclosed in the announcement.
The Big Twin conversion program
The Boeing 777-300ERSF, marketed as “The Big Twin,” is a P2F conversion program developed through a joint venture between AerCap and Israel Aerospace Industries (IAI). It represents the first program designed to convert the Boeing 777-300ER into a dedicated freighter configuration.
According to AerCap’s cargo division, the 777-300ERSF offers 25 percent more cargo volume than the factory-built Boeing 777-200LRF. This increased capacity positions the converted twin-engine aircraft as a cost-effective replacement for aging four-engine Boeing 747 freighters currently operating in the global fleet.
AerCap delivered the first 777-300ERSF to launch customer Kalitta Air in September 2025. Since that initial delivery, the lessor has handed over aircraft to Fly Meta and secured lease agreements with other major operators, including Ethiopian Airlines and China Southern Group.
Regional conversion strategy in Abu Dhabi
The physical conversion of the two aircraft destined for Turkish Airlines will be executed at the Etihad Engineering MRO hub in Abu Dhabi, United Arab Emirates. This facility serves as a dedicated regional conversion center for the 777-300ERSF program.
Anderson highlighted the strategic importance of the location, noting that the Abu Dhabi facility provides a regional platform capability that enables aircraft to be converted in the Middle East prior to delivery. This localized approach is designed to efficiently serve customers across the Europe, Middle East, and Africa (EMEA) market.
“The dedicated 777-300ERSF conversion facility at Etihad Engineering’s MRO hub in Abu Dhabi provides an important regional platform capability, enabling the aircraft to be converted in the Middle East ahead of delivery to Turkish Airlines,” Anderson said.
AerCap’s broader market position
The Turkish Airlines agreement follows a period of strong financial performance for AerCap. On October 28, 2026, the company reported its third-quarter financial results, citing record adjusted earnings per share and raising its full-year 2026 guidance amid high lease rates and sustained demand for aviation assets.
As of September 30, 2026, AerCap’s total portfolio included 1,537 owned and managed aircraft, alongside approximately 1,300 engines and over 300 helicopters. The company’s dedicated cargo division manages a fleet of approximately 110 owned, managed, and on-order freighters, having completed more than 160 passenger-to-freighter conversions to date.
AirPro News analysis
We view the placement of 777-300ERSF aircraft with a major network carrier like Turkish Airlines as a strong validation of the Big Twin program’s economic proposition. As operators look to phase out older Boeing 747 freighters, the 25 percent volume advantage over the 777-200LRF makes the converted 300ER an attractive middle ground between factory-built twin-engine freighters and legacy four-engine platforms. Utilizing the Etihad Engineering facility in Abu Dhabi for a European customer also demonstrates the logistical efficiency of AerCap’s decentralized conversion strategy, reducing ferry times and regional friction for EMEA operators.
Photo Credit: AerCap
Aircraft Orders & Deliveries
CDB Aviation Leases Additional Boeing 737-800 to Neos
CDB Aviation will deliver a Boeing 737-800 to Italian leisure carrier Neos in November 2026, expanding a partnership begun in 2021.
Irish aircraft lessor CDB Aviation will expand its existing relationship with Italian leisure carrier Neos S.p.A. by leasing the airline one additional Boeing 737-800 narrowbody aircraft. The aircraft is scheduled for delivery in November 2026 and will support the carrier’s intra-European and intercontinental route networks.
The agreement, announced in an October 28, 2026, press release, builds upon a leasing partnership established between the two companies in 2021. The transaction highlights continued demand for current-generation narrowbody assets to sustain short- and medium-haul leisure operations.
Expanding the Neos narrowbody fleet
Neos, a wholly owned subsidiary of Alpitour S.p.A. based at Milan Malpensa Airport (MXP), operates an all-Boeing fleet. The airline currently utilizes 18 aircraft, comprising the Boeing 737-800, Boeing 737 MAX 8, and widebody Boeing 787-9 Dreamliner.
The Boeing 737-800 serves as a core asset for the airline’s short- to medium-haul leisure routes. Neos deploys these narrowbody aircraft on intra-European and select intercontinental flights. This narrowbody capacity complements its widebody Boeing 787-9 Dreamliner fleet, which is dedicated to long-haul operations across the carrier’s 85 global destinations in Europe, Africa, Asia, the Middle East, and the Americas.
Marco Brusa, Chief Operating Officer of Neos, stated that the planned addition reflects confidence in the lessor as a trusted partner.
“We are pleased to further strengthen our partnership with CDB Aviation with the planned addition of this Boeing 737-800 to our fleet,” Brusa said. “This agreement builds on our established relationship and reflects our confidence in CDB Aviation as a trusted partner. We look forward to welcoming the aircraft and continuing our successful collaboration.”
A growing lessor-operator partnership
The commercial relationship between CDB Aviation and Neos began in 2021 with an initial agreement covering two Boeing 737-800s. CDB Aviation officially announced the delivery of those two aircraft on February 7, 2023. Those initial airframes were configured with 186 single-class seats to support the carrier’s network.
CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd., operates globally from its Dublin headquarters. As of early 2025, the lessor reported a fleet of 521 owned and committed assets, with aircraft placed at 85 airlines across 40 countries.
Gavan Daly, Head of Commercial EMEA at CDB Aviation, noted the company’s satisfaction with the expanded agreement.
“We are delighted to deepen our partnership with Neos through the agreement to lease this additional 737-800 from CDB Aviation’s portfolio,” Daly said.
Photo Credit: CDB Aviation
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