Embraer's Fourth-Quarter Earnings and Revenues Surpass Estimates

Embraer S.A. EMBJ reported fourth-quarter 2025 adjusted earnings of 83 cents per American Depository Share (“ADS”), which deteriorated from 94 cents per ADS registered in the year-ago quarter. However, the figure outpaced Zacks Consensus Estimate of 17 cents by a massive 388.2%.

The company reported GAAP earnings of 45 cents per ADS compared with 25 cents in the fourth quarter of 2024.

Embraer’s Total Revenues

Revenues totaled $2.65 billion, which beat the Zacks Consensus Estimate of $2.48 billion by 7.2%. The top line also increased 15% year over year, driven by higher revenues from all of ERJ’s business units, especially Defense & Security, Executive Aviation and Services & Support.

Full-year 2025 revenues totaled $7.58 billion compared with $6.39 billion last year.

EMBJ’s Order & Delivery

Embraer delivered 91 jets in the quarter. It delivered 32 commercial and 53 executive (28 light and 25 midsize) jets compared with 31 commercial and 44 executive (22 light and 22 midsize) jets in the prior-year quarter.

The backlog at the end of the fourth quarter was $31.6 billion, higher than the previous quarter’s figure of $31.3 billion.

EMBJ’s Segmental Details

Executive Aviation: This segment recorded revenues worth $750 million, up 20% year over year due to higher volumes and prices. The gross margin increased from 16.8% to 17.3% a year ago. 

Defense & Security: This unit generated revenues of $345 million, which improved 48% year over year. The upside was due to stronger KC-390 revenue recognition related to customer mix and product stage.

Commercial Aviation: This segment recorded revenues worth $974 million, down 1% year over year due to customer mix.

Services & Support: This segment recorded revenues worth $552 million, up 25% year over year, driven by higher volumes across all segments, particularly in Defense & Security and Commercial Aviation.

Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest, the recently included landing gear division and other businesses. Revenues for this segment amounted to $30.4 million, up 2% during the quarter. This upside was driven by the inclusion of the reclassified landing gear division in early 2025, which more than offset agricultural-related weakness.

Operational Highlights of EMBJ

Embraer’s operating income amounted to $217.3 million compared with $258.3 million in the fourth quarter of 2024.

The company posted adjusted EBITDA of $298.4 million compared with $327.5 million a year ago.

Financial Update of EMBJ

As of Dec. 31, 2025, ERJ’s cash and cash equivalents amounted to $1.95 billion compared with $1.56 billion as of Dec. 31, 2024.

Its adjusted free cash flow (without Eve) for the year ended Dec. 31, 2025, totaled $738.3 million compared with $995.5 million in the year-ago period.

The net cash provided by operating activities in 2025 totaled $870.1 million compared with $871.3 million last year.

Embraer’s 2026 Guidance

Embraer initiated its guidance for 2026.

It expects to deliver 80-85 commercial jets and 160-170 Executive Aviation
jets.

ERJ anticipates revenues to be in the range of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.28 billion, which lies below the midpoint of the company’s guided range.

Embraer expects the adjusted EBIT margin to be between 8.7% and 9.3%.

Adjusted free cash flow without Eve is projected to be $200 million or more.

EMBJ’s Zacks Rank

Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Northrop Grumman Corporation NOC reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter. 

NOC’s total sales of $11.71 billion in the fourth quarter beat the Zacks Consensus Estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.  

L3Harris Technologies, Inc. LHX reported fourth-quarter 2025 adjusted earnings (from continuing operations) of $2.86 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 3.6%. 

Revenues totaled $5.65 billion, which missed the Zacks Consensus Estimate of $5.79 billion by 2.6%. However, the top line improved 2.3% from the year-ago quarter’s $5.52 billion.

RTX Corporation’s RTX fourth-quarter 2025 adjusted earnings per share of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also rose 0.6% from the year-ago quarter’s level of $1.54.

RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded in the fourth quarter of 2024.

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This article originally published on Zacks Investment Research (zacks.com).

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