As already predicted in its flight plan for the second half of 2025, Embraer factored in the impacts of the tariff hikes imposed by Donald Trump last year when it released its consolidated financial results for the period this Friday, March 6th.
Among other figures, the company reported an adjusted net profit of R$ 1.36 billion, which represented a drop of more than 47% compared to 2024. In the fourth quarter, the decline was 20.4%, to US$ 832 million.
In disclosing these and other indicators, Embraer highlighted that import tariffs from the United States had an impact of US$27 million in the quarter and US$54 million over the course of the year. Now, however, the company sees a scenario that is, in principle, less turbulent in this area.
The reason for this more optimistic outlook stemmed from the United States Supreme Court's decision to overturn the tariffs imposed by Trump, which were deemed illegal. The measure was announced on February 20th, opening up the prospect of a more favorable timeline for the Brazilian manufacturer.
“The decision was very positive,” said Francisco Gomes Neto, CEO of Embraer, in a call with analysts this morning. “We like that the rules are fair. Embraer was the only manufacturer paying import tariffs. This outcome will benefit American customers.”
Neto also confirmed that the company is exempt from the new 10% tariff imposed by Trump following the announcement of the US Supreme Court's decision. He noted that the company still has some inventory of parts that were subject to these tariffs, but that this will be managed throughout the year.
In the wake of these tariffs, which came into effect in April 2024, Embraer reported having disbursed a total of US$80 million, of which approximately 85% was related to the executive aviation division and the remainder to the services and support unit.
“Since February 24th, we have returned to zero tariffs,” said Antônio Garcia, CFO of Embraer, who nevertheless stressed caution given the back-and-forth on this issue in the US. “It is still very unclear what will happen from now on.”
At the same time, executives noted that Embraer is monitoring the initiatives of its peers regarding the recovery of amounts paid in the tariff increase to understand if it will follow the same path.
In parallel to these issues – and despite their impact – Embraer's financial report didn't only bring bad news. The company reported, for example, record net revenue of R$ 41.8 billion in 2025, with an annual increase of 18.2%.
Looking at these indicators in detail, the company noted that all of its business units performed well during the year, with particular emphasis on the Defense & Security, Executive Aviation, and Services & Support divisions, whose revenues grew by 36%, 24%, and 21%, respectively.
On the other hand, the company recorded the delivery of 91 aircraft in the quarter, including 32 commercial jets and 53 executive jets. For the year, deliveries totaled 244 aircraft, divided among 78 commercial jets, 155 executive jets, and 11 in Defense & Security.
The total backlog of firm orders reached US$31.6 billion in the fourth quarter, a 20% increase over the same period a year earlier, and the highest value ever recorded by the company in its history.
However, despite the impact of tariffs, adjusted quarterly EBITDA was R$1.6 billion, compared to R$1.9 billion in the same period of 2024. Adjusted EBITDA for 2025, in turn, was R$4.9 billion, compared to R$5.1 billion recorded in the previous year.
The report also included the release of guidance for 2026. The company projects delivering between 80 and 85 aircraft in its commercial aviation division. In the executive aviation unit, the estimate is to deliver 160 to 170 aircraft.
The manufacturer also forecasts net revenue between $8.2 billion and $8.5 billion, with an adjusted operating margin in the range of 8.7% to 9.3%, and adjusted free cash flow, excluding Eve, of $200 million or more for the year.
“It’s important to highlight that these estimates reflect our assessment prior to February 20th,” said Garcia. “At the moment, we are adopting a more conservative stance and prefer to wait for a bit more visibility before making any changes to the projections.”
Embraer's shares were down 3.33% on the B3 stock exchange around 11:10 AM, trading at R$ 84.26. Year-to-date, the shares have depreciated by 4.8%, giving the manufacturer a market value of R$ 60.9 billion.
