Embraer Posts Wider Q1 2025 Loss as Revenues Climb to Highest Since 2016

Embraer reported an adjusted net loss of R$428.5 million ($71 million) in the first quarter of 2025, according to its 1Q25 earnings release. The figure reverses a R$1.09 billion ($182 million) profit in the prior quarter.

The result also surpasses the R$63.5 million ($11 million) loss recorded in first quarter 2024. Revenues reached R$6.405 billion ($1.067 billion) in 1Q25, marking the strongest first quarter since 2016.

Adjusted EBITDA totaled R$620.6 million ($103 million), with a 9.7% margin. The company booked adjusted EBIT of R$359.2 million ($60 million), corresponding to a 5.6% margin.

Commercial Aviation revenues rose 16% year-over-year, while Executive Aviation climbed 57%. Defense & Security segment achieved 72% growth. Services & Support increased revenues by 37%.

Deliveries totaled 30 jets, up 20% from 25 units a year earlier. The company delivered seven commercial and 23 executive jets in 1Q25. Deliveries accounted for 13% of the midpoint of its 231-aircraft guidance.

The firm order backlog rose 25% year-over-year to US$26.4 billion, eclipsing the record set in the previous quarter. Embraer extended debt duration to 6.3 years, up from 3.8 years. It ended the quarter with a 0.5x net debt-to-EBITDA ratio, down from 1.8x a year earlier.

At quarter end, the company held R$9.9 billion ($1.650 billion) in cash and equivalents, supported by an undrawn US$1 billion credit facility. Embraer issued a US$650 million ten-year bond and repurchased US$672 million in bonds maturing in 2027 and 2028.

It approved R$51.4 million ($9 million) in dividends related to 2024. The company posted adjusted free cash flow excluding Eve of US$(385.8) million as it built inventory ahead of higher deliveries.

Embraer Reaffirms 2025 Outlook Amid Delivery Delays

Embraer reiterated its 2025 guidance, forecasting 77–85 commercial and 145–155 executive aircraft deliveries. It expects total revenues between US$7.0 billion and US$7.5 billion, an adjusted EBIT margin of 7.5%–8.3%, and adjusted free cash flow above US$200 million.

The company emphasized that U.S. tariffs did not affect its first quarter results. It cited supply chain constraints that delayed two commercial jet deliveries in the quarter.

Embraer ranked as the world’s third-largest commercial aircraft manufacturer and leads the executive jet market. Its growing focus on services and defense aims to offset commercial cycle swings.

Industry recovery accelerated Embraer’s order momentum across commercial and executive segments. Post-pandemic travel rebound boosted regional jet demand, aiding its commercial backlog growth.

Military modernization programs in Latin America and Europe favored its Defense & Security sales. Corporate fleet renewals sustained steady executive jet deliveries and backlog expansion.

Despite the loss, investors responded positively, lifting its share price in after-hours trading. They focused on record revenues, expanding backlog, and improved debt metrics.

Analysts will watch second-quarter delivery ramp-up and free cash flow improvement. They will also track contract signings for the ANA E190-E2 order and other potential large deals. Customer service agreements like Airlink’s

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