Embraer Reports Record $7.58 Billion Revenue and Strong 2026 Outlook

This article is based on an official press release from Embraer and additional industry data.

Embraer Reports Record $7.58 Billion Revenue and Historic Backlog for 2025

Embraer (NYSE: ERJ; B3: EMBJ3) has concluded 2025 with the strongest financial performance in its history, reporting record annual revenue of $7.58 billion and an all-time high firm order backlog of $31.6 billion. According to the company’s fourth-quarter and full-year earnings results released today, the Brazilian aerospace Manufacturers delivered 244 aircraft throughout the year, marking an 18% increase over 2024.

The results were driven primarily by a historic surge in the Executive Aviation segment, which achieved its highest delivery volume ever. Despite facing significant headwinds, specifically a $54 million impact from U.S. import tariffs, the company met its adjusted EBIT margin guidance of 8.7%. With those tariffs recently removed, Embraer has issued an optimistic outlook for 2026, projecting continued double-digit growth and margin expansion.

Financial Highlights: Beating Guidance Despite Headwinds

Embraer’s Financial-Results for the fourth quarter of 2025 underscored a strong finish to the year. The company generated $2.65 billion in revenue during Q4 alone, pushing the full-year total to $7.58 billion. This figure surpassed the upper end of the company’s previous guidance.

Key financial metrics reported by Embraer include:

• Adjusted EBIT: $656.8 million for the full year, resulting in a margin of 8.7%.
• Adjusted Free Cash Flow: $738.3 million in Q4, contributing to a full-year total of $491.2 million.
• Net Cash Position: $109.3 million (excluding Eve Air Mobility cash).

In its official release, the company noted that the $54 million tariff impact compressed margins by approximately 102 basis points in the fourth quarter. However, strong operational efficiency allowed the manufacturer to maintain profitability within its target range.

Operational Performance by Segment

Executive Aviation Breaks Records

The Executive Aviation division was the standout performer of 2025. Embraer delivered 155 business jets during the year, with 53 units delivered in the fourth quarter alone. This volume represents the highest in the company’s history for this segment and met the top end of their guidance range (145–155 jets).

Demand remains robust for Embraer’s core models. The Phenom 300 maintained its status as a global best-seller in the light jet category, while the mid-size Praetor 500 and 600 models saw increased uptake.

Commercial Aviation and Defense

The Commercial-Aircraft segment delivered 78 jets in 2025, landing squarely within the guidance range of 77–85 aircraft. The fourth quarter saw the Delivery of 32 commercial jets, with the larger E195-E2 model accounting for nearly half of those deliveries (15 units). This shift signals growing airline adoption of the E2 platform, which offers improved fuel efficiency and capacity over previous generations.

In the Defense & Security segment, revenue surged 36% year-over-year. Deliveries included 11 aircraft total for the year, with the KC-390 Millennium multi-mission transport aircraft expanding its international footprint, including Orders from NATO nations.

Strategic Context: The “Zero-Tariff” Catalyst

A critical factor in Embraer’s 2025 performance and 2026 outlook is the trade environment with the United States. Throughout 2025, the company was subject to a 10% U.S. import duty on its jets. This tariff created a competitive price disadvantage against rivals such as Bombardier and Dassault and directly cost the company approximately $54 million.

However, the U.S. government has recently reinstated a “zero-tariff” framework for Brazilian aircraft. Embraer leadership has highlighted this policy change as a major tailwind for the coming year.

“The removal of trade barriers with the United States creates more favorable conditions for expansion.”

, Francisco Gomes Neto, CEO of Embraer (via earnings remarks)

2026 Guidance and Outlook

Buoyed by the removal of tariffs and a record backlog, Embraer has issued strong guidance for 2026. The company projects revenue between $8.2 billion and $8.5 billion. Delivery targets include:

• Commercial Aviation: 80 – 85 jets.
• Executive Aviation: 160 – 170 jets.

The company also expects Adjusted EBIT margins to expand to between 8.7% and 9.3%, reflecting the improved pricing power and cost structure following the tariff elimination.

AirPro News Analysis

Embraer’s performance in the executive jet market is particularly noteworthy when viewed against the broader industry. With 155 deliveries in 2025, Embraer has effectively reached volume parity with heavyweights like Gulfstream and Bombardier, who delivered approximately 158 and 157 jets respectively in the same period, according to industry data.

While Embraer’s revenue mix leans more heavily toward light and mid-size jets compared to the large-cabin focus of its North American competitors, the sheer volume of deliveries confirms the Brazilian manufacturer’s dominance in the entry-level and mid-market segments. The removal of U.S. tariffs removes a significant artificial ceiling on their margins, potentially allowing Embraer to compete more aggressively on price or reinvest the savings into further R&D for the E2 and Praetor programs.

Sources: Embraer Q4 2025 Earnings Release, General Aviation Manufacturers Association (GAMA)