Embraer reported an all-time high third-quarter revenue of $2.0 billion in Q3 2025, up 18% year-on-year, driven by strong growth in its Commercial Aviation and Defense & Security segments.
The Brazilian manufacturer delivered 62 aircraft during the quarter (20 commercial jets, 41 executive jets, and one KC-390 Millennium), marking a 5% year-on-year increase. The company’s firm order backlog reached $31.3 billion, an all-time high and up 38% compared with Q3 2024.
Commercial and Defense divisions lead growth
Commercial Aviation revenue climbed to $618 million, an increase of 31% compared to the same period last year, supported by higher volumes and improved pricing. Defense & Security posted $278 million, up 27% year-on-year, reflecting higher KC-390 deliveries and a one-off contract adjustment.
Executive Aviation revenues reached $583 million (+4% year-on-year), while Services & Support totaled $493 million (+16%), benefiting from expanded maintenance capacity and the ramp-up of OGMA’s new GTF engine shop in Portugal.
Profit and cash flow
Embraer’s adjusted EBIT was $172 million with an 8.6% margin, compared to $297 million (17.6%) a year ago, when results had been boosted by a one-time $150 million Boeing arbitration gain.
Adjusted net income stood at $54 million, while adjusted free cash flow (excluding Eve) reached $300 million, driven by higher deliveries and lower accounts receivable.
Balance sheet and credit outlook
Embraer ended the quarter with $1.67 billion in cash and a net cash position of -$439 million, improving by $249 million compared with the previous quarter.
Credit rating agencies have shown renewed confidence in the company, with S&P Global upgrading Embraer to BBB, while Fitch Ratings and Moody’s have revised their outlooks to positive.
During the quarter, Embraer also issued a $1 billion, 12-year bond at a 5.40% coupon, using proceeds to repurchase part of its 2028 and 2030 bonds as part of a broader debt management initiative.
2025 guidance reaffirmed
Embraer reaffirmed its 2025 full-year guidance, targeting:
- 77 to 85 commercial jets and 145 to 155 executive jets delivered;
- Revenue between $7 and $7.5 billion;
- Adjusted EBIT margin between 7.5% and 8.3%;
Free cash flow of US$200 million or higher.
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