Record Demand for Embraer Jets Faces U.S. Tariff Showdown

Embraer ended the second quarter of 2025 with a confirmed all-time high total order backlog of R$29.7 billion ($5.6 billion), its largest in 55 years according to official Q2 filings.

This figure marks a 40% increase year-over-year and a 13% rise from the previous quarter. The data, reported directly by Embraer, highlights company order strength across all main business divisions.

The commercial aviation division closed with a backlog of $13.1 billion. This segment received a significant boost from a firm order by SkyWest for 60 E175 aircraft and purchase rights for 50 more.

Deliveries for this contract start in 2027 and reinforce SkyWest’s U.S. network ambitions. At the same time, Scandinavian Airlines (SAS) added an order for 45 E195-E2 jets, enhancing Embraer’s position in the European regional market.

In total, the E175 model reached 1,000 units sold since 2005, underlining its ongoing relevance to American airlines. Executive aviation posted a backlog of $7.4 billion, up 62% versus last year.

Embraer delivered 38 executive jets in the quarter, a 41% increase over Q2 2024. Models like the Praetor 600 and Phenom 300 keep attracting business aviation customers seeking performance and operating efficiency.

Embraer’s Soaring Backlog Faces U.S. Tariff Turbulence

The defense and security backlog hit $4.3 billion—double the value posted the same time last year. Key programs such as the KC-390 Millennium and A-29 Super Tucano continue to attract exports.

Fixed contracts and predictable delivery schedules help Embraer manage risks in this segment. Services and support achieved a backlog of $4.9 billion, up 55% from a year earlier, supported by new maintenance and support agreements.

Despite this surge, Embraer now faces the impending threat of a 50% U.S. tariff on Brazilian aircraft imports planned for August 2025. The United States accounts for 45% of Embraer’s commercial jet and 70% of its executive jet exports.

Company officials state such a tariff would raise the price of each plane for U.S. buyers by about $9 million and risk $3.6 billion in lost sales through 2030.

Executives warn this could force a halt in exports to the U.S., disrupt production planning, and impact thousands of jobs across Brazil and U.S.-based suppliers. Embraer’s official filings confirm robust industrial performance, cost control, and expanding market reach.

However, the scale of the pending tariff now threatens this progress, posing a major test for the company’s place in the global aerospace supply chain, and the future of Brazil-U.S. aviation trade.

The coming months will determine if Embraer can maintain its growth momentum or faces a costly contraction amid international trade changes.

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