Embraer reports record results for 2025, paid $68m in tariffs

Embraer's new Praetor 600E cabin

• Record sales of $750m in fourth quarter
• Paid $68m in US tariffs on business jet parts imports during 2025.
• Embraer plans to deliver between 160 and 170 business jets in 2026.
• Could have capacity to produce more than 200 executive aircraft in 2027

Embraer had record sales of $750m during the fourth quarter of 2025 as the company delivered 53 business jets – its highest ever in a single quarter. Full-year sales hit $2.3bn – 25% year-over-year growth from 2024. This made up for 30% of the company’s total revenue with commercial, defence and services contributing the remaining 70%.

Embraer paid about $68m in US tariffs on business jet parts imports during 2025.

“In total, we already paid $80m. 85% of that is for executive aviation and the rest of it is for service and support,” said Antonio Garcia, chief financial officer, Embraer during their 2025 earnings call. “So $80m so far is everything we’ve paid since April 2025.” 

The $11bn-market cap company reported 53 executive jet deliveries in the quarter (28 light and 25 medium) taking the full-year tally to 155 jets (86 light and 69 medium)– 25 more than in 2024. The deliveries hit the top-end of Embraer’s full-year guidance of 145-155 business jets for the year.

Embraer plans to deliver between 160 and 170 business jets in 2026.

“Total sales reached approximately $2.3bn, supported by strong demand across the portfolio, including the continued success of the Phenom 300,” chief executive Francisco Neto. “The backlog in the division now stands at $7.6bn, supported by a consistent 1.1:1 book-to-bill ratio.”

The segment’s profit metrics also improved despite pressure from tariffs. Executive aviation segment’s gross margin increased from 16.8% of the revenue to 17.3% a year ago while adjusted EBIT margin inched higher from 10.3% to 10.5% year-over-year.

Embraer’s gains were driven by higher volumes, pricing, and operating leverage which more than offset the negative impact of U.S. tariffs ($24m or 320 basis points) during the year.

Garcia also laid out company’s capital allocation strategy for the year ahead which he said will “be geared towards segments with higher returns, such as executive aviation service and support, mainly in the US.”

The company is planning capital expenditure in key segments including a $90m allocation to increase production capacity for both both commercial aircraft in Brazil and executive jets in Melbourne, Florida. “We continue to see our CapEx run rate at close to $400m per year in the near future,” added Garcia.

Neto said the investments will support company’s production capacity. In the call Embraer hinted at plans to expand manufacturing capacity to 200 business jets per annum. Neto said the company is working on expanding capacity where they face bottlenecks.

“We have been doing that already for a couple of years, while we work on improving efficiency in our production lines. So now we produce one Praetor or one Phenom in half of the time that we used to do back in 2021. So, we are moving – I’d say we’re moving fast to reach those targets, production targets in the next years,” Neto added.

In the last week of February, the company announced upgrades to its popular Praetor 500 and Praetor 600 aircraft. Deliveries will begin in 2029. The Praetor 500E is priced at $21.6m with the Praetor 600E at $25.8m.