SÃO PAULO, Brazil — Embraer reported consolidated revenue of $2,651.8 million for the fourth quarter of 2025, representing a 15% increase compared to the same period in 2024. For the full fiscal year 2025, the company achieved total revenues of $7,577.5 million, an 18% year-over-year increase that surpassed the high end of its previous guidance. Net income attributable to shareholders for the quarter was $83.3 million, nearly doubling the $45.6 million reported in the fourth quarter of the prior year. On a full-year basis, net income remained stable at $351.9 million compared to $352.6 million in 2024.
The company reached a record firm order backlog of $31.6 billion at the end of 2025, a 20% increase over the previous year. This growth was mainly due to a 42% jump in orders for commercial planes. For every plane delivered in that category, nearly three new orders were taken for E175 and E2 models, a book-to-bill ratio of 2.8x. The defense and security division also grew its future order list by 10%. These numbers show a strong interest in Embraer’s smaller commercial jets and military aircraft, giving the company a clear view of its expected work and income for several years.
Looking ahead to 2026, the company expects sales to range between $8.2 billion and $8.5 billion. It plans to ship 80 to 85 commercial planes and 160 to 170 private jets. Profit margins are expected to be around 9%, even after paying for a 10% tax on goods imported into the U.S.. While challenges like shipping delays and manufacturing costs remain, the massive list of future orders provides a steady starting point to reach these goals.
INDUSTRY SEGMENTS
Commercial Aviation
Fourth-quarter revenue in this segment was $974 million, a 1% decline compared to the same period in 2024. The company delivered 32 commercial jets during the quarter, consisting of 18 E2s and 14 E1s. While the full-year delivery total of 78 aircraft was an increase over the 73 delivered in 2024, quarterly performance was impacted by the specific timing of the customer delivery mix.
Profitability in the commercial segment was constrained, as the adjusted EBIT margin fell from 8.5% to 4.1% year-over-year. This compression was attributed to a less favorable customer mix and increased production expenses, specifically in logistics. Despite the quarterly margin dip, the segment remains a critical long-term driver due to the massive increase in firm orders.
Executive Aviation
Executive Aviation recorded revenue of $750 million in the fourth quarter, a 20% increase over the prior year. Deliveries for the quarter reached 53 units, including 28 light and 25 medium jets. For the full year, the segment delivered 155 aircraft, reflecting strong market demand for both light and medium categories.
The segment demonstrated improved profitability, with adjusted EBIT margins rising to 10.5% from 10.3% in the prior year. Higher delivery volumes and improved pricing power effectively offset $24 million in costs related to U.S. import tariffs. The segment benefited from significant operating leverage as it scaled production to meet the growing backlog.
Defense & Security
Revenue for the defense segment rose 48% to $345 million in the fourth quarter. This growth was driven by higher revenue recognition for the KC-390 Millennium program, calculated via the percentage of completion method. Deliveries for the quarter included two KC-390 aircraft and four A-29 Super Tucanos.
Operating margins in Defense & Security normalized to 6.8%, down from a high of 17.5% in the fourth quarter of 2024. The decline was primarily due to a change in customer mix and the absence of one-off benefits that had aided the previous year’s results. The segment continues to focus on the international expansion of the KC-390 multi-mission platform.
Services & Support
The services segment reported $552 million in quarterly revenue, a 25% year-over-year increase. Growth was broad-based across all business lines, with particularly strong activity in support for Commercial Aviation and Defense & Security. For the full year, services revenue grew 18%, reflecting the expanding global fleet of Embraer aircraft.
Segment profitability improved significantly, with the adjusted EBIT margin reaching 21.4% compared to 17.4% in the fourth quarter of 2024. This margin expansion was driven by favorable materials costs and higher service volumes. The strong performance in services helped mitigate the financial impact of U.S. tariffs on other business units.
A military history enthusiast, Richard began his career at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet became central to defense research, he helped design the company’s Forecast Intelligence Center and now coordinates the FI Market Recap newsletters for clients. He also manages two blogs: Defense & Security Monitor, which covers defense systems and international security issues, and Flight Plan, focused on commercial aviation and space systems.
For more than 30 years, Richard has authored Defense & Aerospace Companies, Volume I (North America) and Volume II (International), providing detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database tracking all companies involved in programs covered by the FI library. Richard currently serves as Manager of the Information Services Group (ISG), which develops outbound content for both Forecast International and Military Periscope.
