Embraer brushes off tariff concerns
May 6, 2025
Embraer reported its highest first-quarter revenues since 2016, with the Brazilian aircraft manufacturer confirming that new US tariffs were likely to have only a “limited impact” on its financial performance in 2025.
Group revenues reached $1.103 billion for the period, marking a 23% year-on-year increase. The company cited particularly strong momentum in its Defence & Security business, which posted a 72% rise in revenue compared with the same quarter last year.
Chief Executive Francisco Gomes Neto addressed investor concerns over the potential effects of tariffs on Embraer’s cross-border business operations, stating: “Our initial analysis points towards limited impact.”
The group’s global supply chain, which includes a substantial number of U.S.-origin components, is believed to have cushioned the company from any immediate fallout from the tariffs.
Adjusted EBIT for the quarter stood at US$62 million, representing a 5.6% margin – a significant improvement from 0.8% in the same period a year ago.
Adjusted free cash flow excluding Eve was negative US$385.8 million, which the company attributed to preparations for an increased pace of deliveries in the coming quarters.
Embraer delivered 30 jets in total during Q1, comprising 7 commercial aircraft and 23 executive jets. That marks a 20% increase over the same period in 2024. The commercial segment included a mix of E1 and E2 jets, while executive aviation was split between 14 light and 9 medium aircraft.
The company maintained its full-year 2025 guidance, with commercial aircraft deliveries expected to fall between 77 and 85 units and executive jets between 145 and 155 units. Total annual revenues are projected in the range of US$7.0 to US$7.5 billion, with adjusted EBIT margins of 7.5% to 8.3%, and free cash flow of US$200 million or more.
Embraer ended the quarter with a firm order backlog of US$26.4 billion, surpassing the record set in the final quarter of 2024.
