Embraer reaffirms 2025 outlook despite biting tariffs
Brazilian aerospace manufacturer Embraer said it is confident it will achieve $7-7.5bn in revenue for the year 2025 despite the negative impact of tariffs imposed by the US.
The maker of Phenom and Praetor business jets posted all-time high second quarter revenue with an increase of 64% year-over-year jump in executive aviation revenues at $549m compared to $336m same period last year as a result of higher volumes and better price mix. The record revenue comes despite the company booking a hit on executive jet revenues due to tariffs.
The manufacturer delivered 21 light jets and 17 medium executive jets in the quarter – 11 more than same quarter last year.
“In executive aviation, we delivered 38 jets, of which 21 were in the light segment and 17 in the midsized for an increase of 41%. More importantly, in the first half of the year, we delivered 61 business jets, which accounts for 41% of the midpoint of our full year guidance of 150 jets, well above the 5 year average of 32% for the first semester,” said Francisco Gomes Neto, president and CEO of Embraer.
The company is forecasting 145-155 business jet deliveries in the full year.
Embraer stock soared following the results announcement to high of $59.9 per share before settling to $57.17 as markets remain wary of tariff impacts.
However, Neto addressed US tariffs during the earnings call, stating that: “the impact of the current 10% tariff is already considered in our forecast for the year. This means upside if tariffs return to 0 soon.”
Brazilian goods exported to US will face the highest tariffs imposed by President Donald Trump. The US has imposed 50% tariff on all Brazilian goods.
However, Neto said the company is working with groups to push for reduced rates on aerospace segment. The company said it is planning $500m investment in US aviation industry including production plants and MRO facility.
Executive aviation’s earnings before interest and taxes (EBIT) expanded by 4%YoY to $25m while margins stayed flat at 4.3% of the revenue.
The company remains optimistic about its outlook as it expanded executive aviation backlog by a whopping 62% year-over-year to $7.4bn. Embraer announced a $7bn order from Flexjet in January 2025.
