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Embraer S.A. (ERJ - Free Report) reported first-quarter 2025 earnings of 40 cents per American Depository Share (ADS), which beat the Zacks Consensus Estimate of 21 cents by 90.5%. The bottom line also improved on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Embraer’s Total Revenues
Revenues totaled $1.10 billion, up 23% year over year, driven by higher revenues from the company’s Executive Aviation, Defense and Security, as well as Services & Support segments. The figure, however, missed the Zacks Consensus Estimate of $1.12 billion by 0.9%.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer delivered 30 jets in the quarter. It delivered seven commercial and 23 executive (14 light and nine midsize) jets compared with seven commercial and 18 executive (11 light and seven midsize) jets in the prior-year quarter.
The backlog at the end of the first quarter was $26.4 billion, higher than the prior quarter’s figure of $26.3 billion.
ERJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $323 million, up 35% year over year. The year-over-year improvement was on account of higher volumes, favorable price discipline and product mix.
Defense & Security: This unit generated revenues of $139 million, which improved 72% year over year. The upside was driven by solid revenue recognition from the KC-390 jet program.
Commercial Aviation: This segment recorded revenues worth $202 million, in line with the prior-year figure.
Services & Support: This segment recorded revenues worth $425 million, up 16% year over year, on account of the ramp-up of OGMA GTF.
Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment were $15 million, up 66% year over year. This upside was driven by the recently reclassified landing gear division.
Operational Highlights for ERJ
Embraer’s operating income amounted to $51.2 million against an operating loss of $3.9 million in the first quarter of 2024.
The company posted an adjusted EBITDA of $108.6 million compared with $47.1 million in the first quarter of 2024.
Financial Update for ERJ
As of March 31, 2025, ERJ’s cash and cash equivalents amounted to $0.81 billion compared with $1.56 billion as of Dec. 31, 2024.
Its adjusted free cash outflow (without Eve) for the first quarter of 2025 totaled $385.8 million compared with $346.1 million in the prior-year period.
The net cash used in operating activities amounted to $183.8 million during the first quarter of 2025 compared with $307.8 million at the end of the first quarter of 2024.
Embraer’s 2025 Guidance
Embraer reiterated its guidance for 2025.
It continues to expect to deliver 77-85 commercial jets and 145-155 Executive Aviation jets.
ERJ still anticipates generating revenues in the range of $7.0-$7.5 billion. The Zacks Consensus Estimate for revenues is pegged at $7.36 billion, which lies above the midpoint of the company’s guided range.
Embraer still expects the adjusted EBIT margin to be between 7.5% and 8.3%.
Adjusted free cash flow is still projected to be $200 million or more.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2025 earnings of $7.28 per share, which beat the Zacks Consensus Estimate of $6.34 by 14.8%. The bottom line increased 15% from the year-ago quarter's reported figure of $6.33 per share.
The company’s net sales were $17.96 billion, which beat the consensus estimate of $17.76 billion by 1.1%. The top line also increased 4.5% from $17.20 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2025 adjusted earnings of $6.06 per share, which missed the Zacks Consensus Estimate of $6.21 by 2.4%.
NOC’s total sales of $9.47 billion in the first quarter missed the consensus estimate of $9.91 billion by 4.4%. The top line also declined 6.6% from $10.13 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) first-quarter 2025 adjusted earnings per share of $1.47 beat the Zacks Consensus Estimate of $1.35 by 8.9%. The bottom line also improved 9.7% from the year-ago quarter’s level of $1.34 per share, driven by growth in adjusted segment operating profit.
Its first-quarter sales totaled $20.31 billion, which surpassed the consensus estimate of $19.71 billion by 3%. The top line also surged a solid 5.2% from $19.31 billion recorded for the first quarter of 2024.
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Embraer's Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Embraer S.A. (ERJ - Free Report) reported first-quarter 2025 earnings of 40 cents per American Depository Share (ADS), which beat the Zacks Consensus Estimate of 21 cents by 90.5%. The bottom line also improved on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Embraer’s Total Revenues
Revenues totaled $1.10 billion, up 23% year over year, driven by higher revenues from the company’s Executive Aviation, Defense and Security, as well as Services & Support segments. The figure, however, missed the Zacks Consensus Estimate of $1.12 billion by 0.9%.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote
ERJ’s Order & Delivery
Embraer delivered 30 jets in the quarter. It delivered seven commercial and 23 executive (14 light and nine midsize) jets compared with seven commercial and 18 executive (11 light and seven midsize) jets in the prior-year quarter.
The backlog at the end of the first quarter was $26.4 billion, higher than the prior quarter’s figure of $26.3 billion.
ERJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $323 million, up 35% year over year. The year-over-year improvement was on account of higher volumes, favorable price discipline and product mix.
Defense & Security: This unit generated revenues of $139 million, which improved 72% year over year. The upside was driven by solid revenue recognition from the KC-390 jet program.
Commercial Aviation: This segment recorded revenues worth $202 million, in line with the prior-year figure.
Services & Support: This segment recorded revenues worth $425 million, up 16% year over year, on account of the ramp-up of OGMA GTF.
Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment were $15 million, up 66% year over year. This upside was driven by the recently reclassified landing gear division.
Operational Highlights for ERJ
Embraer’s operating income amounted to $51.2 million against an operating loss of $3.9 million in the first quarter of 2024.
The company posted an adjusted EBITDA of $108.6 million compared with $47.1 million in the first quarter of 2024.
Financial Update for ERJ
As of March 31, 2025, ERJ’s cash and cash equivalents amounted to $0.81 billion compared with $1.56 billion as of Dec. 31, 2024.
Its adjusted free cash outflow (without Eve) for the first quarter of 2025 totaled $385.8 million compared with $346.1 million in the prior-year period.
The net cash used in operating activities amounted to $183.8 million during the first quarter of 2025 compared with $307.8 million at the end of the first quarter of 2024.
Embraer’s 2025 Guidance
Embraer reiterated its guidance for 2025.
It continues to expect to deliver 77-85 commercial jets and 145-155 Executive Aviation jets.
ERJ still anticipates generating revenues in the range of $7.0-$7.5 billion. The Zacks Consensus Estimate for revenues is pegged at $7.36 billion, which lies above the midpoint of the company’s guided range.
Embraer still expects the adjusted EBIT margin to be between 7.5% and 8.3%.
Adjusted free cash flow is still projected to be $200 million or more.
ERJ’s Zacks Rank
Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2025 earnings of $7.28 per share, which beat the Zacks Consensus Estimate of $6.34 by 14.8%. The bottom line increased 15% from the year-ago quarter's reported figure of $6.33 per share.
The company’s net sales were $17.96 billion, which beat the consensus estimate of $17.76 billion by 1.1%. The top line also increased 4.5% from $17.20 billion reported in the year-ago quarter.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2025 adjusted earnings of $6.06 per share, which missed the Zacks Consensus Estimate of $6.21 by 2.4%.
NOC’s total sales of $9.47 billion in the first quarter missed the consensus estimate of $9.91 billion by 4.4%. The top line also declined 6.6% from $10.13 billion reported in the year-ago quarter.
RTX Corporation’s (RTX - Free Report) first-quarter 2025 adjusted earnings per share of $1.47 beat the Zacks Consensus Estimate of $1.35 by 8.9%. The bottom line also improved 9.7% from the year-ago quarter’s level of $1.34 per share, driven by growth in adjusted segment operating profit.
Its first-quarter sales totaled $20.31 billion, which surpassed the consensus estimate of $19.71 billion by 3%. The top line also surged a solid 5.2% from $19.31 billion recorded for the first quarter of 2024.