What does Embraer do and what are its main business segments?

What were the key takeaways from Embraer's earnings call?

What is Embraer's gross profit margin?

What is the revenue and EPS growth rate for Embraer year over year?

Did Embraer beat or miss consensus estimates last quarter?

What were the key takeaways from Embraer’s earnings call?

What is Embraer's latest dividend and current dividend yield?

What guidance did Embraer's management provide for the next earnings period?

- **Revenue Growth**: Q3 revenue up 18% to $2B, driven by Commercial (+31%) and Executive (+4%) segments. Backlog surges to $31.3B.
- **Margin Expansion**: Adjusted EBIT margin 8.6% (Q3), despite $17M tariff impact. Full-year margin guidance 7.5-8.3%.
- **Operational Efficiency**: 16% delivery increase, 40% Praetor production time reduction, and 12% cost savings via lean initiatives.
- **Strategic Investments**: $33M in R&D, new MRO facility in Dallas, and Eve's test flight planned for late 2025.
- **Risk Factors**: U.S. tariffs (~$35M Q4 impact) and supply chain execution risks for Q4 deliveries.
- **Shareholder Returns**: Buybacks under consideration post-dividend resumption; 2026 dividend declared at BRL 0.28 per share.

**【CEO Summary Section】**
- **Commercial Aviation**: 50 E195-E2s ordered by Avelo (with 50 options) and 24 by LATAM (with 50 options), driving a 31% revenue increase and a 2.7:1 book-to-bill ratio. Backlog reached $15.2 billion.
- **Executive Aviation**: Record Q3 revenue of $580M, 2,000th business jet delivered, and a 2.4:1 book-to-bill ratio. Backlog stands at $7.3 billion.
- **Defense & Security**: Portugal orders 6 KC-390s with 10 options, and new A-29 Super Tucano agreements with Panama and Sierra Nevada. Backlog is $3.9 billion with a 1.3:1 ratio.
- **Services & Support**: 16% revenue growth and a 1.8:1 book-to-bill ratio. New MRO facility in Dallas and Starlink connectivity solutions launched.
- **Operational Efficiency**: 800+ Kaizen projects, 16% delivery increase, and 12% cost reduction via zero-defect methodology. Production lead time reduced by 40% for Praetor, 33% for KC-390, and 27% for E-Jets.

**【CFO Financial Commentary】**
- **Revenue & Profitability**: Q3 revenue $2B (18% YoY), adjusted EBITDA $236M (11.8% margin). Full-year guidance: 77-85 Commercial deliveries, 145-155 Executive deliveries, $7-7.5B revenue, 7.5-8.3% EBIT margin, and >$200M free cash flow.
- **Liquidity**: Net debt reduced to $439M (0.5x debt-to-EBITDA ratio), with $1B 12-year bond issued at 5.4% coupon. Targeting net cash position by year-end.
- **Margins & Costs**: Adjusted EBIT margin 8.6% (Q3), impacted by $17M tariffs. U.S. import tariffs expected to weigh on Q4 margins.
- **Free Cash Flow**: $300M generated in Q3, supported by EBITDA and lower receivables. R&D investment $33M year-to-date.

**【Q&A Highlights】**
- **Tariffs & Share Buybacks**: CFO considers buybacks post-dividend resumption but cautious on additional dividends. U.S. tariffs expected to impact Q4 margins (~$35M remaining).
- **Engine Retrofit**: American Airlines' E175-E2 retrofit program expandable to other airlines, with new MRO facility in Dallas.
- **KC-390 in India**: Negotiations progressing, with 50% local content requirement. Collaboration with Mahindra for marketing and production.
- **Future Expansion**: Investing in new technologies (electric/hybrid propulsion) for potential larger aircraft, with no timeline for decision.
- **Eve Progress**: First full-scale E2 test flight planned for late 2025/early 2026.


Embraer S.A. (EMBJ) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EMBJ

EMBJ fundamentals

You can ask Aime