Embraer approves buyback of up to 10.93M shares

Embraer approves buyback of up to 10.93M shares

Embraer S.A. (B3: EMBR3, NYSE: ERJ) has approved a share buyback program for up to 10.8 million common shares, representing approximately 1.5% of its outstanding shares. The program, effective from November 7, 2025, to November 6, 2026, will be executed on the B3 S.A. stock exchange at market prices, with BTG Pactual Serviços Financeiros serving as the intermediary. Funding will come from the company's Investment and Working Capital Reserve, which totaled R$2.51 billion ($451 million) as of September 30, 2025. The board emphasized that the buyback will not impair Embraer's ability to meet creditor obligations or alter its shareholder structure.

In addition, Embraer executed equity swap derivative contracts with Banco Itaú Unibanco to hedge share-price fluctuations. These agreements, effective November 7, 2025, reference up to 10.93 million common shares and involve cash settlements within 12 months. The company will receive share price variations and dividends while paying CDI plus a spread under the terms of the contracts.

Embraer's stock has surged 70% over the past year, trading near its 52-week high of $16.80. The company reported a record $31.3 billion order backlog as of Q3 2025, driven by large contracts such as Avelo Airlines' order for 50 E195-E2 jets and Sweden's procurement of four C-390 Millennium aircraft. Moody's affirmed Embraer's Baa3 credit rating with a positive outlook, citing improved operational and financial metrics.

The buyback program aligns with Embraer's strategy to optimize capital structure while maintaining financial flexibility, as outlined in its regulatory filings.