Embraer reports 35%YoY jump in first quarter revenue
Embraer’s executive aviation division delivered strong performance in the first quarter of 2025, with revenue rising by 35% year-over-year to $323m primarily driven by higher delivery volumes and an improved product mix, according to the company’s latest earnings release.
First quarter has been historically a seasonally slower period for the Brazilian aerospace manufacturer.
“Executive Aviation delivered a solid performance reflected in sales, deliveries and backlog. The division also reached the highest first quarter revenue since 2014 in a record backlog of $7.6bn,” said Francisco Gomes Neto, CEO and president of Embraer during the earnings call.
As reported earlier in April, the aircraft manufacturer’s deliveries from the jet segment increased by 28% year-over-year, with Embraer handing over 23 executive aircraft during the quarter compared to 18 in the first quarter of 2024.
The deliveries comprised two Phenom 100s, 12 Phenom 300s, three Praetor 500s, and six Praetor 600s.
The company highlighted that the Phenom 300 series was recognised as the world’s best-selling and most delivered light jet for the 13th consecutive year in February, according to the General Aviation Manufacturers Association (GAMA).
Profitability metrics for the Executive Aviation division also showed marked improvement. The segment’s gross margin slightly increased to 21.8% from 21.4% in the first quarter of 2024.
More impressively, adjusted EBIT margin more than doubled, jumping from 5.0% to 11.3% during the same period, which the company attributed to improved operating leverage and ongoing cost containment initiatives. In absolute terms, the company’s executive aviation segment’s EBIT margin stood at $36m during the quarter.
While the revenues and margins improved significantly, the most striking development was the increase in the executive jet backlog, which rose 66% to record $7.6bn in Q1 2025, up from $4.6bn in March 2024.
Having delivered 23 executive jets in the first quarter, Embraer has achieved approximately 15% of the midpoint of its full-year guidance, which projects between 145 and 155 executive jet deliveries in 2025 – representing about 15% growth year-over-year.
To support this projected growth, Embraer has committed to investing $90m in capital expenditures between 2024 and 2027 to increase production capacity at its facilities in Gavião Peixoto, Brazil, and Melbourne, Florida.
Overall, Embraer reported strong first quarter performance across its divisions, with total revenues reaching $1.1bn – the best first quarter since 2016 and 23% higher year-over-year.
The company’s total firm order backlog reached an all-time high of $26.4bn, up 25% from the previous year.
Embraer achieved an adjusted EBIT of $62m with a 5.6% margin, significantly improved from the 0.8% margin in Q1 2024, while reiterating its full-year 2025 guidance of total revenues between $7.0 and $7.5bn and adjusted EBIT margin between 7.5% and 8.3%.
US tariffs on imports
Commenting on the US tariffs announced on imports, Neto said that while the first quarter results were not affected, their outlook for the rest of the year hasn’t changed much.
“Embraer has a substantial amount of U.S. content in its aircraft, which mitigates partially our exposure. And last, and more importantly, we are working on initiatives to minimise the impact of U.S. tariffs on our business, and we are argued for zero tariffs to globalise the aerospace production chain, as it has been the case for many decades,” he said.
“Our initial estimate is that could negatively impact our EBITDA margin by 90 basis points for 2025. However, the company is taking several steps to mitigate these effects like additional cost reduction measures. And for now, we remain confident we can deliver our guidance 2025,” he added.
“To finish, U.S. tariffs so far should have limited impact on our company. And we join other companies in calling the return of zero-tariff policy for the aviation sector, as has been the case for several decades, reducing complexity and costs for a highly globalised industry.”
