Embraer Soars on Record Revenue, $31.6B Backlog Signals Clear Skies

SÃO PAULO, Brazil – March 06, 2026 – Brazilian aerospace giant Embraer S.A. reported a landmark year for 2025, shattering its own financial forecasts with record-breaking revenues and building its largest-ever firm order backlog of US$31.6 billion. The performance underscores a powerful resurgence in demand across global aviation markets and positions the company for sustained growth, even as it navigates persistent supply chain challenges and international trade headwinds.

The company announced full-year revenues of US$7.578 billion, an 18% increase year-over-year and significantly above its own guidance. Profitability also soared, with adjusted EBIT reaching US$656.8 million for an 8.7% margin, again surpassing expectations. This robust financial health was driven by a sharp increase in aircraft deliveries, which climbed 18% to 244 units across its commercial, executive, and defense divisions. Looking ahead, Embraer issued confident guidance for 2026, projecting revenues to climb further to between US$8.2 and US$8.5 billion.

Backlog Boom Signals Global Aviation Rebound

At the heart of Embraer's stunning performance is its unprecedented US$31.6 billion firm order backlog, a figure that grew by over 20% in the last year alone. This massive order book provides years of revenue visibility and serves as a clear barometer for the health of the aviation industry.

The Commercial Aviation division was the standout performer, with its backlog swelling by an incredible 42% year-over-year to US$14.5 billion. This was fueled by a remarkable 2.8x book-to-bill ratio, meaning the company secured nearly three new aircraft orders for every one it delivered. The demand is centered on its modern and fuel-efficient E-Jet family, particularly the E2 series.

Significant orders in 2025 included a landmark deal with US-based Avelo Airlines for up to 100 E195-E2 jets, making it the first American carrier to adopt the model. Other major commitments came from European carrier SAS for 45 E195-E2s and Latin American giant LATAM for 24 of the same aircraft. With 459 firm commercial orders on the books, Embraer is solidifying its dominance in the regional jet market, a segment critical for connecting smaller cities and feeding major hubs.

"The demand for new-generation, fuel-efficient regional jets is undeniable," noted one industry analyst. "Airlines are refreshing their fleets to lower operating costs and meet sustainability targets, and Embraer's E2 family is perfectly positioned to capture that demand."

A Diversified Fleet for a Complex Market

While the commercial segment captured headlines, Embraer's success is built on a foundation of strategic diversification. The company’s ability to serve distinct market segments—commercial, executive, and defense—has provided both stability and multiple avenues for growth.

The Executive Aviation division also achieved a new milestone, with its backlog reaching an all-time high of US$7.6 billion. The division delivered 155 private jets in 2025, continuing the strong demand for its popular Phenom and Praetor series aircraft. The Phenom 300, in particular, has maintained its status as the world's best-selling light jet for 14 consecutive years, a testament to its enduring appeal in the corporate and private travel markets.

Meanwhile, the Defense & Security segment is proving to be an increasingly vital pillar of the company's strategy. Its backlog grew to US$4.6 billion, bolstered by international interest in its multi-mission aircraft. The C-390 Millennium tactical transport aircraft has secured orders from several NATO countries, including the Netherlands, Portugal, and Austria, with Sweden also signing on. This growing international customer base for the C-390, a direct competitor to legacy platforms, highlights Embraer's expanding footprint in the global defense market.

This diversified portfolio allows the company to weather fluctuations in any single market segment, creating a more resilient business model that is proving its worth in the current economic climate.

Navigating Headwinds and Charting the Future

Despite the record-setting results, Embraer's path is not without challenges. The company's 2026 guidance, while optimistic, is set against a backdrop of a global economy with steady but unspectacular growth projections and the persistent risk of trade friction. Furthermore, the entire aerospace industry continues to grapple with a fragile supply chain, where bottlenecks for critical components like engines and titanium could constrain production ramp-ups.

The financial impact of these external pressures is visible in the company's earnings. Embraer reported that US import tariffs cost the company US$54 million in 2025, reducing its adjusted EBIT margin by 0.7 percentage points. While the company successfully absorbed these costs and still beat its profitability targets, it underscores a significant headwind that affects its bottom line.

Nonetheless, the company’s ability to generate US$491.2 million in adjusted free cash flow and achieve a net cash position of US$109.3 million demonstrates strong operational discipline. This financial strength, combined with a successful liability management strategy that extended its average loan maturity from 3.7 to 9.1 years, gives Embraer a solid foundation to execute on its massive backlog and invest in future innovations.

The Eve Horizon: A Bet on Urban Air Mobility

Looking beyond its traditional markets, Embraer is making a strategic and well-capitalized bet on the future of aviation through its affiliate, Eve Air Mobility. Spun out as a separate, publicly traded company, Eve is focused on developing an electric vertical take-off and landing (eVTOL) aircraft for the nascent urban air mobility market.

Eve is not just a concept; it is making tangible progress. In December 2025, the company successfully completed the first flight of its full-scale, uncrewed prototype, a critical step toward certification. With a flight-test program of nearly 300 flights planned for 2026, Eve is on an ambitious schedule to achieve type certification and begin deliveries in 2027.

Crucially, Embraer's financial reporting clearly separates Eve's results, allowing investors to assess the performance of the core aviation business independently. At the same time, Eve benefits immensely from its parent, leveraging over 800 contracted Embraer engineers and its global support infrastructure. This unique structure mitigates risk for Embraer while giving Eve a powerful competitive advantage. With letters of intent for nearly 2,700 aircraft, representing a potential US$14 billion in revenue, Eve is positioning itself as a leader in a sector that could redefine urban transportation. While some competitors have paused their air taxi programs, Embraer's focused and well-resourced approach through Eve continues to advance, charting a course for the company's next chapter of innovation.