Leeham News and Analysis
There's more to real news than a news release.
Embraer reports record Q2 revenue and backlog; reaffirms 2025 outlook
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.
Looks like Embraer are doing well with their corporate jets.
Sign of the times, I guess (income stratification).
In theory they could buy naked C919 structures shells with own designed wings and refine to an Embraer passenger jet with own systems and fit LEAP-1C engines for it.
Or…they could introduce their own mainline narrowbody design, and finance, manufacture and sell it in cooperation with India.
The engine needn’t necessarily be western: both Brazil and India have good relations with Russia (a fellow BRICS member).
Total independence from the US would appeal to all participants involved.
No future in a podge like that.
Russia does not have a remotely competitive engine.
Said kludge would never be able to sell in world recognized AHJ.
Brazil and India both have legitimate issues with current US administration as do most in the US.
Ironic nothing on the above has to do with current affairs, its the auto scrip.
What Embraer has going it its favor is a solid worldwide customer support system. That’s something that COMAC and Russia don’t have, yet. That makes this scenario not as farfetched as it sounds.
Or they can do the trick with the Comac C919 version of the A321neo once it is developed. Just making shure the Embraer carbon wing fits structurally, electrically and aero. Embraer can use the same western component suppliers as on the A321neo when stuffing the fuselage shell. This would speed up time to market and as A321neo delivery slots are +5 years away there is a gap to fill until the new Airbus A321neo successor with carbon/thermoplastic fuselage/wing and RISE powered aircraft is outputted in volumes +10 years from now.
The issue looming is the one with ICAO and the E1-175.
US might well give waivers. Its the only aircraft of its type being built in the world. A lot of airlines depend on it.
Regional type planes have an easier hurdle to pass the ICAO/FAA restrictions.
E1-175 has already made ( small) changes to pass.
The orders profile shows this , eg for Skywest ( 60 firm + 50 purchase rights)
‘The aircraft will be purchased by SkyWest from Embraer, with deliveries expected to begin in 2027. SkyWest also secured firm delivery positions with Embraer for 44 additional E175s from 2028 to 2032’
It often assumed because of the name the CF34-10 is the same as the much older versions. Its not as GE changed the architecture to make it a mini CFM-56. For marketing reasons it was still with the old name
I am not any kind of in depth Jet engine guy. I understand the pri9nciples and can follow explanation of specif aspects.
My reading has concluded that while GE says CF-34 passes, others state is an open issue.
Casual review says CF34 has not been changed. Do you have references to it being done?
Embraer can have offered the sales based on money returned if its not allowed to sell the E1.
Well if China does not buy direct they do by indirect!
https://manilastandard.net/news/314626844/cathay-pacific-unveils-deal-for14-boeing-jets.html
Cathay is privately owned unlike the main state owned carriers. It also operates outside the centralised purchasing system for airliners that Beijing uses.
Of course Cathay ordered 21 777-9 around time of launch, so this takes the total to 35
Some of Cathay 777-300ER are still stored
No proof but my suspicion is that China says frog, CP will jump.
The agreement for return of HK has been overturned. I won’t disagree China can do it, just that its no longer the arms length relationship and CP is not going to take any actions not approved.
Moonlighting as fiction writer? How’s it going?
CX had as many as 53 777-300ER
Previously Cathay Pacific placed an order for its 777-9 in late 2013, expecting delivery between 2021 and 2024.
A bit eerie and a lesson that all aircraft mfgs face these issues
https://archive.ph/IXVBg
And in this case, solid credit to Boeing for laying out a plan that was totally ignored.
https://archive.ph/FOVFr
The Coast Guard docket is interesting reading. Especially the testimony from OceanGate employees on “fail-fast and iterate” innovation and the inability of regulators to keep up, thus justifying the absence of review and certification.
Sounds like the CEO had swallowed that narrative hook, line and sinker. But I guess he was right in one sense, the Titan failed fast.
OceanGate is way off topic.
Hamilton
Another quarterly loss and cash burn at Spirit Aero:
-Revenues of $1.6 billion
-EPS of $(5.36); Adjusted EPS* of $(3.34)
-Cash used in operations of $144 million; Free cash flow usage of $190 million
https://www.spiritaero.com/pages/release/spirit-aerosystems-reports-second-quarter-2025-results/
As expected.
Yep, that’s why Boeing is acquiring Spirit. There was no hope that Spirit could make the investments needed to fix the quality issues.
Debts of $4.34 billion (long-term plus current portion)
Two money losing companies
If (1+1) = 2
(-1 + -1) = ?
Even worse: two money-losing companies that just can’t stop tripping over themselves 🙈
BTW
> Spain rules out buying F-35, choosing between Eurofighter or FCAS
Politico.eu
> Spain’s decision would be a major setback for planemaker Lockheed Martin, as Madrid issued a non-binding request for information on the F-35 in 2017.
Spain’s 2023 budget included an initial allocation of €6.25 billion to replace navy and air force aircraft.
What a surprise (not)!
In any case, LM soon won’t be producing F35s any more, due to lack of rare earth elements. Each F35 contains 420kg of REEs.
On a related note:
India has halted further procurement of Boeing P8 aircraft, due to Trump’s tariffs:
https://idrw.org/indian-mod-halts-procurement-of-six-additional-p-8i-aircraft-amid-u-s-tariff-shock-balancing-cost-and-strategic-needs/#google_vignette
https://english.almayadeen.net/news/Economy/india-halts–3-6bln-boeing-deal-following-trump-s-harsh-tari
And another one:
“Swiss Politicians Push to Cancel F-35 Fighter-Jet Deal After US Tariffs”
“Swiss politicians across parties are seeking to cancel an order of three dozen F-35A fighter jets from US defense conglomerate Lockheed Martin Corp after President Donald Trump imposed some of the world’s harshest levies on the country.”
https://www.bloomberg.com/news/articles/2025-08-07/swiss-politicians-push-to-cancel-f-35-fighter-jet-deal-after-us-tariffs
US F-16 loses out as Thai Air Force seals Gripen jets
https://www.scmp.com/news/asia/southeast-asia/article/3320828/us-f-16s-lose-out-thai-air-force-seals-us600-million-deal-swedish-gripen-jets
More old news
August 5
Gripens have been serving with Thai AF since 2015
Clearly buying more but the newer model. So old news
Minimizing and deflection don’t change the fact: LM offered to upgrade Thai’s older F-16.
https://www.janes.com/osint-insights/defence-news/air/details-emerge-on-lockheed-martins-f-16-offsets-proposal-to-thailand
China and India both have 50% US tariffs That said, “The combined population of China and India is approximately 2.9 billion people, which is roughly 35% of the world’s population.” Who really needs who? The US beginning cut off from 35% world population does not well bode for US companies
In addition: Trump’s antics are accelerating (new) partnerships that may not be to his advantage.
Examples:
EU-MERCOSUR, EU-India, EU-TTAP
China-ASEAN, China-Saudi Arabia
Iran-Russia-China
Russia-UAE, Russia-Egypt
Brazil-India
There are plenty of lucrative trade opportunities outside the US…
Kudos to these 737 pilots who maneuvered at takeoff speed to take the impact of the vehicle in the wing fairing. Probably saved the aircraft and many lives.
https://sistema.cenipa.fab.mil.br/cenipa/paginas/relatorios/rf/en/PS-GPP_12FEV2025_ENG.PUB5.pdf
Yes.
I am stunned at the various breakdowns in that tower. Deliberately taking a system off safe is impossible to account for.
Often those issues at airports are a result of distraction, not in this case, like a driver coming up on a red light and continuing.
The report notes that the controller and supervisor made numerous errors in the minutes leading up to this incident, on multiple flights. Seems like a total breakdown in tower discipline.
All the major US airlines are actually losing money flying people from place to place?
https://pbs.twimg.com/media/GxwpGsPbEAAOCVY?format=png&name=small
https://t.co/5W4EBk4U6z
How come many other major airlines outside the US don’t have this problem?
Ryanair doesn’t have a loyalty program, but still generates sizable yearly profits:
https://www.statista.com/statistics/756093/ryanair-net-profit/
Similar story at Air Asia, for example.
Here is a good explanation.
https://weekly.visualapproach.io/p/airlines-as-loss-leaders
So Pedro has taken something on Twitter at face value?
Without the loyalty ‘seat miles’ they would sell those seats in the normal way and earn revenue according to the explanation of the accounting process
My father gifted me some airlines points from long haul many years ago, as he wasnt travelling anymore. It was a US airline which charged higher prices for their routes – to cover their loyalty program.
All the US carriers now do it so the passenger dont notice, and the cost is there even if not a ‘member’
Can’t see the link to the article? ROFL
I see who doesn’t have any idea of how US airlines are run/simple economics.
Elementary economics: supply and demand curves. There’s optimal level to maximize your profit and airlines are working on that each & every day while our poster imagines that: Oh, since the airlines have extra seats available, they can sell them. Right, it works in one’s imagination. In real world, additional supply will only be met at lower prices. That’s the tradeoff in a dynamic market. I see whose idea is inherited from a planned economy. 😁
Are there any evidence airlines are diverting seats they likely can sell to customers at a better price than awarded seats. Does our poster know what’re black-out periods for seat redemption?
It’s time for our poster to read the article first ahead of commenting.