Productivity Gains Boost Embraer Revenues to $2 Billion

Embraer today reported record third-quarter revenues of more than $2 billion, driven by 62 aircraft deliveries, with the majority being executive jets. Speaking to analysts, the Brazilian airframer’s president and CEO, Francisco Gomes Neto, acknowledged that earnings were dented in the three months to September 30 due to U.S. tariff costs of $17 million that he said reduced margins by around 2.5%.

Of the 41 business jets Embraer delivered in the quarter, 23 were midsize/super-midsize Praetor models and the other 18 were Phenom light jets, with this rate remaining stable compared with the same year-ago period. The company increased its airliner deliveries from 16 in third-quarter 2024 to 20 in the most recent quarter, including 13 E195 E2s and seven E1 models.

Net revenues grew by 18% in the quarter, with Neto praising progress made by his production teams to increase aircraft deliveries by 16%. He said that lead times for Praetors has been cut by 40% versus 2021 levels, while the equivalent improvement for E-Jets was 27%. Embraer has been able to raise prices for both aircraft portfolios.

Order backlogs, including defense and service/support bookings, at the end of the quarter showed 38% growth, to $31.3 billion—rising to around $50 billion, if options are factored in. Its executive jet division made the most progress in this regard, recording a 65% boost, to $7.3 billion.

According to Embraer CFO Antonio Garcia, the company is maintaining its guidance for 2025, with business jet and airliner deliveries expected to be between 145 and 155 and 77 and 85, respectively. Projected consolidated revenues are anticipated at $7 billion to $7.5 billion, with an adjusted EBIT margin of between 7.5% and 8.3%. According to Neto, Embraer's factories now hold all the supply-chain inventory they need to meet 2025 production targets.

Neto reported that Eve Air Mobility, in which Embraer is the majority shareholder, is working to achieve first flight with the technology demonstrator for its four-passenger eVTOL aircraft. He reiterated that the timeline for this could extend beyond the end of 2025 and into the early months of 2026.

The Embraer CEO also confirmed that the company has definitely dropped its plans to develop a 70- to 90-seat turboprop regional airliner based on a concept it first floated in 2020. He played down expectations that Embraer will announce new aircraft programs in the near future, while insisting that it's work on possible new propulsion technologies, under its Energia program, will continue.

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