Embraer Posts US$4.7 Million Loss in 2Q25, Maintains 2025 Outlook

Embraer reported a 2Q25 adjusted net loss of US$4.7 million, reversing an adjusted net profit of US$80.4 million from the same period last year. However, the company reaffirmed its 2025 financial outlook and noted that recent US tariffs had only a limited impact on its quarterly performance.

Net revenue for the quarter reached US$1.82 billion, up 22% year-over-year. Adjusted EBITDA rose to US$245.5 million from US$190.4 million. The loss was primarily attributed to a net change in deferred income tax and social contributions.

Embraer confirmed its expectation to deliver between 77 and 85 commercial aircraft in 2025, alongside 145 to 155 executive jets. Full-year net revenue is projected between US$7 billion and US$7.5 billion.

The company had faced a potential 50% US tariff on Brazilian imports that could have significantly affected its primary market. However, US President Donald Trump recently exempted aircraft from the additional tariff, mitigating the immediate threat to Embraer’s order pipeline.

“A 50% tariff on our largest market would have had effects similar to those experienced during the pandemic — including canceled orders, deferred deliveries, and lost revenue,” Embraer stated in its earnings release. Despite avoiding the higher tariff, the company remains subject to a 10% duty implemented in April.

Embraer described the tariffs as a “major concern” but clarified that their financial impact in the second quarter was limited. The company called for a “swift return to zero tariff rules for all aviation and aerospace industries.” Embraer emphasized its long-standing ties with the United States, highlighting its US-based investments and job creation. Notably, the E175, one of its flagship aircraft, is a mainstay of US regional aviation.

In 2024, Embraer posted record-breaking revenue of US$6.4 billion, a 21% increase year-over-year, reaching the upper end of its guidance. The Defense & Security division led growth with a 40% increase in revenue. For the full year, Embraer delivered 206 aircraft, including 73 commercial jets, 130 executive jets, and three C-390 Millennium military transport aircraft—a 14% increase from 2023.

Embraer’s 2024 financial performance also included an adjusted EBIT of US$708.2 million, with an 11.1% margin, and EBITDA of US$922 million, reflecting a margin of 14.4%. The firm order backlog reached a record US$26.3 billion, a 40% year-over-year increase.

For 2025, Embraer forecasts revenue between US$7 billion and US$7.5 billion and plans to deliver 77 to 85 commercial aircraft and 145 to 155 executive jets. The projected adjusted EBIT margin is between 7.5% and 8.3%. Despite ongoing supply chain constraints, CEO Francisco Gomes Neto stated early in the year that the outlook is “even better than 2024 in all aspects.” Analysts at J.P. Morgan noted that the guidance implies EBIT growth of up to 12% at the high end, signaling continued profitability but limited near-term upside relative to market expectations.

Embraer closed 2Q25 with a record-high firm order backlog of US$29.7 billion, reflecting strong global demand across its commercial and defense segments. The company secured a firm order from SkyWest for 60 aircraft, with purchase rights for 50 additional units, valued at US$3.6 billion at list price.

In addition, Scandinavian Airlines (SAS) signed a milestone agreement to acquire 45 E195-E2 jets, with purchase rights for 10 more, marking SAS’s largest direct jet order from a manufacturer since 1996. The base value of the SAS order is approximately US$4 billion. These deals are part of a broader surge in orders, which also includes aircraft for Mexicana, Airlink, and other carriers.