Embraer S.A.

What it is

Founded on 19 August 1969 by Ozires Silva as a Brazilian government enterprise, Embraer designs, builds, and supports aircraft for regional airlines, corporations, and air forces — occupying the market niche between propeller planes and the large narrow-bodies sold by Boeing and Airbus. When it was privatised in 1994, the Brazilian government kept a special “golden share” that gives it veto rights over strategic decisions, particularly those touching military programmes.

In commercial aviation, Embraer calls itself the market leader in the up-to-150-seat segment, where its E-Jet family is the dominant product; in business jets, its Phenom 300 leads its class in deliveries, with 72 handed over in 2025 alone.

Who owns it

Embraer has no controlling shareholder or control group that permanently holds the majority of votes — it is a genuinely dispersed, widely held company, unusual for a Brazilian industrial of its size. The Brazilian government retains its golden share from the privatisation, but since joining B3’s Novo Mercado governance tier Embraer has had no controlling shareholder at all.

Institutional investors — pension funds, asset managers, index funds — hold roughly 52% of the shares, per EODHD data, with no single named insider holding a disclosed stake; the rest is retail free-float traded on B3 and the NYSE.

Who runs it

Francisco Gomes Neto serves as President and CEO. Antonio Carlos Garcia is Executive Vice President, Financial & Investor Relations — the role that combines CFO and market-communication functions at Embraer.

The board is chaired by Raul Calfat, with Claudia Sender Ramirez as Vice Chair — a slate the board’s own People and ESG Committee selected and put to shareholders at the 2025 annual meeting.

The money, in plain words

Revenue has grown 60% in two years — from R$26.1bn (~US$5.07bn) in 2023 to R$41.9bn (~US$8.13bn) in 2025 (our calculation) — as aircraft deliveries accelerated and the services business expanded. Yet for every real of those sales, Embraer keeps just under four cents as net profit — a net margin of 3.93% — which is lean for a manufacturer, reflecting the heavy engineering costs of making aircraft.

For every real shareholders have invested in the business, Embraer earns about nine cents back each year — a return on equity of 8.79%, respectable but not exceptional in aerospace. At 35.8 times earnings (price-to-earnings ratio of 35.8×), the market is paying a growth premium: it expects deliveries and margins to keep rising.

The company carries a net debt position of R$4.19bn (~US$814m, our calculation), manageable against its operating cash generation.

What it is doing now

Embraer entered 2026 with the largest order backlog in its history, at US$31.6 billion at list prices. It delivered 244 aircraft in full-year 2025, up 19% from 2024, and is targeting up to 255 deliveries in 2026, excluding defence.

In January 2026, Embraer and Adani Defence & Aerospace signed a partnership to develop a regional transport aircraft ecosystem in India, targeting the country’s fast-growing regional aviation market. On the defence side, its KC-390 Millennium military transport continues to draw interest from European states.

What to watch

• Margin expansion. Revenue is growing fast, but a net margin of 3.93% leaves little room for error; watch whether the 2026 guidance for an operating margin of 8.7%–9.3% actually converts into higher net profit.
• The India bet. The Adani partnership is a manufacturing and supply-chain play in a vast market — execution risk is real, and the timeline to revenue is long.
• Currency drag. Embraer prices aircraft in US dollars but reports in reais; a weak real flatters revenue in BRL terms while doing nothing for dollar-denominated earnings power.
• Eve Air Mobility. Embraer’s electric air-taxi subsidiary is burning cash; it is excluded from guidance — a signal that investors should track it separately.
• The 35.8× P/E. That valuation prices in strong delivery growth through the decade; any slip in the backlog conversion rate would reprice the stock sharply.

This is news, not investment advice.