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.
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.
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.
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.
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.
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.
Question: What were the main highlights of Embraer’s Q3 2025 financial results? Question: How many aircraft did Embraer deliver in the third quarter of 2025? Question: What is Embraer’s financial guidance for the full year 2025? Question: Why is a large order backlog significant for a company like Embraer?
Embraer‘s Q3 2025: Soaring Revenues and a Record-Breaking Backlog
A Deep Dive into the Financials
Operational Excellence and Market Confidence
Looking Ahead: Guidance and Future Outlook
Concluding Section
FAQ
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.
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.
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.
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
Aergo Capital Acquires Boeing 737 MAX 8 from Aircastle Leased to WestJet
Aergo Capital acquires a Boeing 737 MAX 8 from Aircastle currently leased to WestJet, highlighting active secondary market demand and expanding Aergo’s aviation portfolio.
This article is based on an official press release from Aergo Capital.
Dublin-based aircraft leasing and asset management platform Aergo Capital has announced the acquisition of one Boeing 737 MAX 8 aircraft from Aircastle. The transaction, announced on December 16, 2025, involves an aircraft bearing Manufacturer Serial Number (MSN) 60513, which is currently on lease to Canadian carrier WestJet.
This acquisition marks a continuation of Aergo Capital’s strategy to invest in modern, fuel-efficient narrowbody aircraft. According to the company’s official statement, the deal underscores the active secondary market for the 737 MAX and strengthens the trading relationship between the two major lessors. The aircraft remains in operation with WestJet, ensuring continuity for the airline while transferring asset ownership to Aergo.
The deal highlights the growing collaboration between Aergo Capital and WestJet, following significant transactions earlier in the operational year. By acquiring this asset, Aergo expands its portfolio of liquid, in-demand aviation assets while Aircastle executes its strategy of active portfolio management.
The specific asset involved in the transaction is a Boeing 737 MAX 8, identified by MSN 60513. Fleet data indicates this aircraft operates under the registration C-GRAX. Originally delivered during the initial rollout phase of the MAX program, the aircraft is approximately eight years old and represents the current generation of Boeing’s narrowbody technology.
Fred Browne, Chief Executive Officer of Aergo Capital, emphasized the importance of the acquisition in strengthening ties with both the seller and the lessee. In a statement regarding the deal, Browne noted:
“We are pleased to complete the acquisition of this Boeing 737 MAX 8 from Aircastle… I also extend my thanks to WestJet for their continued partnership and support.”
On the seller’s side, Aircastle, a Stamford-based lessor owned by Marubeni Corporation and Mizuho Leasing, viewed the sale as a testament to their strong commercial network. Michael Inglese, CEO of Aircastle, commented on the relationship between the firms:
“We value the long-standing trading relationship we have built with Aergo… The acquisition underscores the strong commercial relationship between Aergo and Aircastle.”
This transaction is not an isolated event but rather part of a deepening relationship between Aergo Capital and WestJet. In August 2024, Aergo completed a significant sale-and-leaseback transaction involving eight Boeing 737-800 aircraft with the Canadian airline. That deal marked the first major collaboration between the two entities. The addition of this 737 MAX 8 further cements Aergo’s position as a key partner in WestJet’s fleet financing structure. For Aircastle, the sale aligns with a strategy of capital recycling and portfolio optimization. Trading assets with leases attached is a common practice in the aircraft leasing industry, allowing lessors to manage age profiles and risk exposure. For WestJet, the transaction represents a “backend” change of lessor; the airline retains physical possession and operational control of the aircraft, merely redirecting lease payments to the new owner, Aergo Capital.
The Secondary Market for the MAX 8
The transfer of a Boeing 737 MAX 8 between two major lessors highlights the intense demand for this asset class in the secondary market. With new aircraft production facing documented delays across the industry, “on-lease” assets, aircraft that are already built, certified, and generating revenue, have become premium commodities.
While an eight-year-old airframe might typically be considered approaching mid-life, the 737 MAX 8 remains a current-generation asset offering approximately 14% better fuel efficiency than its predecessors. For lessors like Aergo Capital, acquiring such an asset avoids the long wait times associated with factory order books. For the industry at large, this trade signals that liquidity for the MAX platform remains robust, despite, or perhaps because of, supply chain constraints limiting the delivery of new metal.
Sources:
Aergo Capital Acquires WestJet-Leased Boeing 737 MAX 8 from Aircastle
Transaction Overview and Executive Commentary
Strategic Context and WestJet Partnership
Deepening Ties with WestJet
Asset Liquidity and Market Demand
AirPro News Analysis
Photo Credit: Aergo Capital
Aircraft Orders & Deliveries
Qanot Sharq Receives First Airbus A321XLR in Central Asia
Qanot Sharq becomes Central Asia’s first operator of the Airbus A321XLR, expanding long-haul routes to North America and Asia from Tashkent.
This article is based on an official press release from Airbus and Qanot Sharq.
On December 19, 2025, Qanot Sharq, Uzbekistan’s first private airline, officially took delivery of its first Airbus A321XLR (Extra Long Range) aircraft. The delivery, facilitated through a lease agreement with Air Lease Corporation (ALC), marks a historic milestone for aviation in the region, as Qanot Sharq becomes the launch operator of the A321XLR in Central Asia and the Commonwealth of Independent States (CIS).
This aircraft is the first of four confirmed A321XLR units destined for the carrier. According to the official announcement, the airline intends to utilize the aircraft’s extended range to open new long-haul markets that were previously inaccessible to single-aisle jets, including planned services to North America and East Asia.
The newly delivered A321XLR is powered by CFM International LEAP-1A engines and features a two-class layout designed to balance capacity with passenger comfort on longer sectors. The aircraft accommodates a total of 190 passengers.
In addition to the seating configuration, the aircraft is fitted with Airbus’ “Airspace” cabin interior. Key features include customizable LED lighting, lower cabin altitude settings to reduce jet lag, and XL overhead bins that provide 60% more storage capacity compared to previous generation aircraft.
Nosir Abdugafarov, the owner of Qanot Sharq, emphasized the strategic importance of the delivery in a statement regarding the fleet expansion.
“The A321XLR’s exceptional range and efficiency will allow us to offer greater comfort and convenience while maintaining highly competitive operating economics.”
, Nosir Abdugafarov, Owner of Qanot Sharq
The introduction of the A321XLR allows Qanot Sharq to deploy a narrowbody aircraft on routes typically reserved for widebody jets. With a range of up to 4,700 nautical miles (8,700 km), the airline plans to connect Tashkent with destinations in Europe, Asia, and North America.
According to the airline’s strategic roadmap, the new fleet will support route expansion to Sanya (China) and Busan (South Korea). Furthermore, the airline has explicitly outlined plans to serve New York (JFK) via Budapest. While the A321XLR has impressive range, the distance between Tashkent and New York (approximately 5,500 nm) necessitates a technical stop. Budapest will serve as this intermediate point, potentially allowing the airline to tap into passenger demand between Central Europe and the United States, subject to regulatory approvals. AJ Abedin, Senior Vice President of Marketing at Air Lease Corporation, noted the geographical advantages available to the airline.
“Qanot Sharq is uniquely positioned to unlock the full potential of the A321XLR due to its strategic location in Uzbekistan, bridging Europe and Asia.”
, AJ Abedin, SVP Marketing, Air Lease Corporation
The delivery of the A321XLR signals a distinct shift in the competitive landscape of Uzbek aviation. Until now, long-haul flights from Tashkent,specifically to the United States,have been the exclusive domain of the state-owned flag carrier, Uzbekistan Airways, which utilizes Boeing 787 Dreamliners for non-stop service.
By adopting the A321XLR, Qanot Sharq appears to be pursuing a “long-haul low-cost” hybrid model. The A321XLR burns approximately 30% less fuel per seat than previous-generation aircraft, allowing the private carrier to operate long routes with significantly lower trip costs than its state-owned competitor. While the one-stop service via Budapest will result in a longer total travel time compared to Uzbekistan Airways’ direct flights, the lower operating costs could allow Qanot Sharq to offer more competitive fares, appealing to price-sensitive travelers and labor migrants.
Furthermore, the choice of Budapest as a stopover is strategic. If Qanot Sharq secures “Fifth Freedom” rights,which are currently a subject of regulatory negotiation,it could monetize the empty seats on the Budapest-New York sector, effectively competing in the transatlantic market while serving its primary base in Central Asia.
Sources: Airbus Press Release, Air Lease Corporation
Qanot Sharq Becomes First Central Asian Operator of Airbus A321XLR
Aircraft Configuration and Capabilities
Strategic Network Expansion
AirPro News Analysis: The Long-Haul Low-Cost Shift
Sources
Photo Credit: Airbus
Aircraft Orders & Deliveries
China Airlines Orders Five Additional Airbus A350-1000 Aircraft
China Airlines adds five Airbus A350-1000s to its fleet, enhancing capacity on transpacific and European routes with deliveries from 2026.
This article is based on an official press release from Airbus and additional industry data regarding fleet modernization.
China Airlines (CAL) has officially signed a firm orders for five additional Airbus A350-1000 aircraft, signaling a continued commitment to modernizing its long-haul operations. Announced on December 18, 2025, this agreement increases the Taiwan-based carrier’s total backlog for the A350-1000 variant to 15 aircraft. The move is part of a broader strategy to replace aging widebody jets and enhance capacity on high-density routes connecting Asia with North America and Europe.
According to the official statement released by Airbus, these new aircraft will join the airline’s existing fleet of 15 A350-900s. The decision to expand the A350-1000 order book underscores the operator’s reliance on the A350 family’s commonality, which allows for streamlined pilot training and maintenance procedures. Deliveries for the newly ordered jets are scheduled to commence in 2026 and continue through 2029.
The deal also highlights the competitive landscape of widebody aviation in the Asia-Pacific region. By securing these additional units, China Airlines aims to deploy its flagship product on slot-constrained routes where maximizing passenger count per movement is critical. The aircraft will be powered by Rolls-Royce Trent XWB-97 engines, known for their efficiency in long-range operations.
China Airlines plans to utilize the A350-1000 primarily for its most prestigious long-haul markets. Industry reports indicate that the aircraft will be deployed on key transpacific routes to New York (JFK), Los Angeles (LAX), Seattle (SEA), and Ontario, California (ONT), as well as European hubs like London Heathrow (LHR). The A350-1000 offers significantly higher capacity than the -900 variant, making it a strategic asset for airports with limited landing slots.
Coinciding with these deliveries, the airline is preparing to unveil a major upgrade to its onboard product. Sources familiar with the carrier’s fleet planning suggest a new cabin design will debut in 2027. This retrofit is expected to feature business class suites with closing doors, 4K entertainment screens, and wireless charging capabilities, aiming to rival premium competitors such as Singapore Airlines and Cathay Pacific.
The interior aesthetic will likely continue the carrier’s “Oriental aesthetics” theme, utilizing persimmon wood-grain finishes and mood lighting to evoke a boutique hotel atmosphere. While the current A350-900 seats 306 passengers, the larger -1000 variant is projected to accommodate between 350 and 400 passengers, providing a substantial boost in premium economy and economy seat inventory.
Both China Airlines and Airbus executives emphasized the efficiency and passenger comfort benefits of the A350-1000. In the official press release, Kao Shing-Hwang, Chairman of China Airlines, noted the alignment of this order with the carrier’s sustainability and service goals. “Expanding our A350-1000 fleet marks another important step in our long-term growth strategy. The A350’s exceptional efficiency and passenger comfort align with our goals to modernize our fleet, enhance long-haul competitiveness, and deliver an elevated travel experience to our customers.”
Kao Shing-Hwang, Chairman of China Airlines
Benoit de Saint-Exupéry, Airbus EVP Sales, added that the repeat order validates the aircraft’s performance in the heavy widebody segment.
“This follow-on order is a strong vote of confidence in the A350-1000 as the right aircraft for China Airlines’ future network ambitions. Its next-generation efficiency, range, and cabin comfort brings even greater value to the airline and its passengers.”
Benoit de Saint-Exupéry, Airbus Sales
This order reinforces a “split fleet” procurement strategy that has become increasingly common among major global carriers. While China Airlines has committed to the Boeing 777X for specific high-volume trunk routes and the 787 Dreamliner for regional replacement, the expansion of the A350-1000 fleet secures Airbus’s position as the backbone of the airline’s medium-to-large widebody operations.
From a financial perspective, based on 2025 list prices of approximately $366.5 million per unit, the deal holds a theoretical face value of roughly $1.83 billion, though actual acquisition costs are typically 40-50% lower after standard industry discounts. Environmentally, the shift is significant; the A350-1000 offers a 25% reduction in fuel burn compared to the previous generation aircraft it replaces, such as the Boeing 747-400 freighters and older passenger jets. This efficiency gain is a critical component of the airline’s roadmap to achieving Net Zero carbon emissions by 2050.
China Airlines Bolsters Long-Haul Capacity with Additional A350-1000 Order
Strategic Deployment and Cabin Innovation
Next-Generation Passenger Experience
Executive Commentary
AirPro News Analysis
Sources
Photo Credit: Airbus
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