Leeham News and Analysis
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Embraer posts record 3Q25 revenues, maintains full-year outlook despite softening profit
By Tom Batchelor
Nov. 04, 2025, © Leeham News:
Embraer reported record third-quarter revenues and reaffirmed its full-year 2025 financial and delivery guidance on Tuesday, even as profits softened compared with the previous quarter.
The Brazilian aerospace manufacturer said its 3Q25 results remained strong across its commercial, executive, and defense segments, underscoring continued momentum despite well-documented challenges, in the form of tariffs and supply chain delays.
The company reported revenues of $2 billion in 3Q25, an 18% year-on-year increase and the highest third-quarter figure in its history.
The performance was fuelled by a 31% jump in Commercial Aviation revenues and a 27% rise in Defense & Security, reflecting stronger deliveries.
Executive Aviation also remained a major contributor to overall performance, building on a surge in first-half shipments.
Key financial metrics
Embraer’s adjusted EBIT came in at $172 million, equivalent to an 8.6% operating margin.
While down from $191.8 million (10.5%) in 2Q25, the figure still marked an improvement compared with $146 million (7.3%) in 3Q24.
The quarter’s result was tempered by U.S. import tariffs of $17 million, which reduced profitability by approximately 85 basis points.
On a year-to-date basis, tariff-related expenses reached $27 million.
Notably, adjusted net income for the third quarter of this year stood at $54.4 million, down from $118.9 million in 2Q25 and $221 million in 3Q24.
For the nine months to September 2025, adjusted net income also dropped to $99.7 million, versus $288.5 million in the same period a year earlier.
However, the company’s free cash flow excluding Eve Air Mobility surged to $300.3 million, a sharp turnaround from the negative $162 million reported in 2Q25.
Deliveries up in 3Q25
Embraer delivered 62 aircraft during the quarter, up 5% year-on-year and an additional aircraft versus the 61 aircraft in 2Q25.
The 3Q deliveries consisted of 20 commercial jets (13 E2s and 7 E1s), 41 executive jets (23 light and 18 medium), and one KC-390 Millennium in the defense segment.
The firm order backlog rose to a record US$31.3 billion, up from US$29.7 billion in the second quarter and reflecting continued strength in both commercial and business aviation.
The E-Jet E2 family remains a key growth driver, supported by new commitments from global regional carriers and leasing firms, while the Phenom and Praetor executive jet lines continue to see robust demand.
Highlights include new orders for Avelo for 50 E195-E2s, plus 50 options, and Latam for 24 E195-E2s, plus 50 options.
Francisco Gomes Neto, president and CEO of Embraer, told investors on a Tuesday morning earnings call: “Embraer is currently experiencing a highly positive phase, a strong indication that our strategy driven by efficiency and innovation is delivering solid results and effectively supporting our sustainable growth.”
Full year guidance holds steady
Embraer reiterated its 2025 operational and financial guidance, projecting 77–85 commercial aircraft deliveries and 145–155 executive jet deliveries for the full year.
The company continues to target revenues in the range of $7.0–7.5 billion, an adjusted EBIT margin between 7.5% and 8.3%, and adjusted free cash flow of at least $200 million. Before Tuesday’s results were announced, J.P.Morgan analysts had forecast that, based on 1H solid data (EBIT margin at 8.7%), the EBIT margin guidance would be revised upward to at least 8.0-9.0%.
The steady guidance reflects Embraer’s realism but also its confidence in its production cadence and supply chain stability, both of which have improved after earlier disruptions.
Embraer has made efficiency gains within its production line a key focus.
Gomes Neto told investors: “We are transforming our supply chain through Supply Chain Management 2.0, a comprehensive initiative that integrates digital technologies, proactive risk management and the deployment of artificial intelligence for smarter planning and forecasting. These efforts have already started to pay off. Aircraft deliveries increased … and average shortage decreased by 25% compared to last year.”
The company also expects continued strength in the business jet market, where demand remains above pre-pandemic levels, and stable growth in defense through ongoing KC-390 deliveries and service contracts.
In a boost to its financial profile, S&P Global Ratings has upgraded Embraer’s credit rating to “BBB”, placing it two notches above the investment-grade threshold.
Fitch Ratings and Moody’s also revised their outlooks on the company from stable to positive, maintaining ratings of “BBB-” and “Baa3” respectively.
Engine durability for the E2s
Gomes Neto was asked about the PW1900G engine which powers the E190-E2 and E195-E2 aircraft, and whether the widespread issues affecting the Pratt & Whitney PW1500G geared turbofan engine which powers the Airbus A220 were impacting Embraer too. Reports suggest between 15-20% of the global A220 fleet has been grounded due to engine issues.
But Gomes Neto said: “The E2 is using the third generation of the PW 1900 G engine, which has incorporated several upgrades and improvements. The E2 is a much lighter aircraft compared to the others, which means there is less demand on the engines.
“That’s why the E2 has suffered much less than the competition. The engines are getting better and better with new improvements being implemented. We expect much better performance and durability of the engines going forward for the E2s.”
Best wishes for their success. Its a firm I admire.
Still remember the flight in a Banderante, got to fly an E1-175 last year, nice airplane.
Interesting info as regards the E2 and its reduced fallout from the PW GTF fiasco as compared to other frames.
Airbus continues to suffer: about 20% of A220s are grounded, and hordes of A320/321neos also (40 at Wizz, 30 at IndiGo,…).
The Russian MC-21 has replaced the originally-envisioned PW1400G by the domestic PD-14.
Back to the future. JT8 by any other name. Heavy and worse reliability that will never get better.
Actually it was more than envisioned, PW 1400G was built and shipped.
PD-14:
“Advanced materials: Features include 18 wide-chord hollow titanium alloy blades, composite nacelle, and new monocrystalline alloys for turbine blades.
“Low-emission combustor: Uses a low-emission annular combustor with world-first pneumatic fuel injectors to improve atomization and reduce emissions.
“Electric reverser: Features an electric drive for the thrust reverser, a first for Russian aircraft engines.”
***
“…worse reliability that will never get better.”
Presumably, that’s referring to the PW1400G…? 🙈
“…worse reliability that will never get better.”
That’s not about the engine. That’s about the whole country producing these engines.
ABALONE
The PD-14 was fitted to the MC21 for ONE REASON. To escape western sanctions on the Putin Regime invoked in the wake of the Ukrainian invasion. Putin’s command economy is being really affected by International Sanctions. With that the overriding story in the background……..The PD14 has a cruise SFC around 0.53-0.54 kg/kgf/h. That’s not terrible. This places it almost on par with the CFM International LEAP engine family and about 5% less efficient in fuel economy compared to the Pratt & Whitney PW1400G geared turbofan. Its issues are currently masked by its tiny installed base. Tiny installed bases always overperform the identical product produced at rate because they are hand fitted by craftsmen. We won’t see its warts until it has an installed base built on an assembly line normally at rate. The second issue with the PD-14 and the PD-9 for that matter, has nothing to do with its russian heritage. It is that there are very few in existence, spares are quite limited and in the past, this has been a huge operational issue to be overcome by everybody. Support in some ways is more important than the cruise sfc number. If you cant fly it profitably, it greatly diminishes its operational value. The jury is out on the new PD9 and PD14. They may be really good, but you don’t really know until you have an installed base of sufficient size to know for sure. It’s a crapshoot of monumental proportions to buy either an MC-21 or SJ100 given the support history of the Superjet that led to its abandonment. The Russians suck at it. Now, I’m really a fan of the SJ100, I’m sure that if it got into the hands of solid operators and had even average spares availability it wouldn’t have flopped in operations like it did. I’m hopeful that the russians can supply the spares to the Indians on the licensing deal in quantitys to keep the fleet they build flying. If the Indians also gain control of the component manufacturing with the deal, all the better as they can do support better than the russians. Hindustan is a solid company with a deep history.
Now for the Embraer content. NOBODY in Brazil is a big enough moron to willingly swap to either the PD-9 or PD-14. The risks are far too great and even with the teething problems in the engine business these days, the engine manufacturers are 100% committed to fixing them. The russian engine companies have proven they cannot offer fleet support and expecting that to change is ludicrous.
Embraer cancels next-generation turboprop concept
https://www.flightglobal.com/airframers/embraer-cancels-next-generation-turboprop-concept/165149.article
I LOVE EMBRAER
I fly on their E175s going to Palm Springs and its a better experience for me than going on 37 or a 320. It’s very well done. If you can, book a flight on one. In a way, I’m relieved Boeing didn’t acquire them. Boeing would have been the winner there. When one looks at how they are doing post breakup, its as if they have a higher level of resolve to perform. This is a good report
“Embraer targets Asia for C-390 expansion”
“Embraer Defense & Security has formalized a strategic partnership with India’s Mahindra Group to promote the C-390 Millennium transport aircraft for the Indian Air Force’s Medium Transport Aircraft (MTA) program.
“The agreement, signed in New Delhi, deepens cooperation between the two firms and aligns with India’s Atmanirbhar Bharat initiative to increase domestic defense production.
“According to Embraer, the Strategic Cooperation Agreement (SCA) expands on a Memorandum of Understanding signed earlier this year and aims to position India as a long-term hub for the C-390 Millennium platform. The focus includes manufacturing, assembly, supply chain development, and maintenance capabilities.”
https://defence-blog.com/embraer-targets-asia-for-c-390-expansion/