By Tom Batchelor

Aug 5, 2025, © Leeham News:  Embraer’s revenue and order backlog hit a record high in 2Q 2025, with the Brazilian manufacturer reaffirming its full-year guidance after a strong performance across its business.

The E2 family has improved fuel efficiency. Credit: Embraer

Revenues totaled $1.82 billion in Q2, a 22% increase year-on-year and the highest second-quarter revenue in the company’s history.

The standout driver was Executive Aviation, with segment revenues soaring 64% compared to Q2 2024.

Defense & Security, Services & Support and Commercial Aviation also performed well with increases in revenues of 18%, 13% and 4% yoy.

The company delivered 61 aircraft during the quarter, up 30% from 47 in the same period last year.

This included 19 commercial jets (10 E2s and 9 E1s), 38 executive jets (21 light and 17 medium), and 4 defense aircraft.

CEO Francisco Gomes Neto described the period as the “strongest second quarter in [Embraer’s] history.”

Profits up, all-time-high backlog

Adjusted EBIT for the quarter reached $191.8 million, representing a margin of 10.5%, up from 9.3% in Q2 2024. Adjusted EBITDA sat at $245.5m for the three months.

Despite a negative adjusted free cash flow of $161.6 million (excluding eVTOL subsidiary Eve), the company noted this was a result of production ramp-up to support higher deliveries in the second half of the year.

Embraer’s firm order backlog hit a record $29.7 billion, driven by strong demand in both commercial and executive aviation markets.

The company-wide backlog increased by 40%, with Defense & Security and Executive Aviation increasing by 100% and 62%, respectively. Commercial Aviation recorded a 16% year on year increase.

Tariff impact

Looking ahead, Embraer reaffirmed its 2025 guidance, including commercial aircraft deliveries between 77 and 85 units and executive aircraft deliveries between 145 and 155.

Total revenues are expected to range from US$7.0 to US$7.5 billion, with an adjusted EBIT margin of 7.5% to 8.3%, and adjusted free cash flow of at least $200 million.

“We expect a positive reaction today due to the stronger-than-expected margins, showing the continuous improvement in the company’s profitability,” analysts at J.P. Morgan said in response to the figures.

While Embraer is confident it can meet its full-year guidance, the company has cautioned that the second half of the year may see headwinds from foreign exchange volatility, potential new tariffs, and ongoing inflationary pressures.

Embraer has nicknamed its E2 aircraft ‘Profit Hunters’. Credit: Embraer

Embraer said unequivocally that U.S. tariffs did not materially impact its Q2 results in its 5 Aug press release.

Yet Gomes Neto commented that tariffs continued to be a “major concern” for the company.

He told investors on the earnings call that he was pushing hard for a “negotiated solution” that returns the industry to zero tariffs.

Embraer has been engaging with U.S. officials to negotiate the rollback of current tariffs, aiming to restore the previous zero-tariff status.

As part of its efforts, the company is emphasizing its significant contribution to the U.S. economy, and has also announced a planned investment of US$500 million in the U.S. over the next five years.