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Embraer's Q2 Earnings Miss Estimates, Revenues Increase Y/Y
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Key Takeaways
Embraer's Q2 adjusted loss of 2 cents missed estimates and also deteriorated year over year.
Revenues rose 21.8% to $1.82B, led by 64% growth in Executive Aviation sales.
Backlog climbed to $29.7B from $26.4B in the previous quarter.
Shares of Embraer S.A. ((ERJ - Free Report) ) gained 2.1% to reach $58.39 on Aug. 8, following the release of its second-quarter 2025 results.
The company reported a second-quarter 2025 adjusted loss of 2 cents per American Depository Share (ADS), which missed the Zacks Consensus Estimate for earnings of 47 cents. The bottom line also deteriorated significantly from earnings of 44 cents per ADS registered in the year-ago quarter.
The company reported GAAP earnings of 43 cents per ADS compared with 54 cents in the second quarter of 2024.
Embraer’s Total Revenues
Revenues totaled $1.82 billion, up 21.8% year over year, driven by higher revenues from all of ERJ’s business segments, especially Executive Aviation. The figure also surpassed the Zacks Consensus Estimate of $1.67 billion by 8.9%.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer delivered 61 jets in the quarter. It delivered 19 commercial and 38 executive (21 light and 17 midsize) jets compared with 19 commercial and 27 executive (20 light and seven midsize) jets in the prior-year quarter.
The backlog at the end of the first quarter was $29.7 billion, higher than the previous quarter’s figure of $26.4 billion.
ERJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $549 million, up 64% year over year. The year-over-year improvement was driven by price discipline, higher volumes and better product mix.
Defense & Security: This unit generated revenues of $221 million, which improved 18% year over year. The upside was driven by solid revenue recognition from the A-29 Super Tucano jet program.
Commercial Aviation: This segment recorded revenues worth $577 million, up 4% year over year.
Services & Support: This segment recorded revenues worth $456 million, up 13% year over year, driven by higher volumes in the Commercial Aviation business and the ramp-up in the OGMA GTF engine shop.
Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment amounted to $14 million, up 13% year over year. This upside was driven by the reclassified landing gear division.
Operational Highlights for ERJ
Embraer’s operating income amounted to $179.5 million compared with $127.9 million in the second quarter of 2024.
The company posted an adjusted EBITDA of $245.5 million compared with $190.4 million a year ago.
Financial Update for ERJ
As of June 30, 2025, ERJ’s cash and cash equivalents amounted to $1.31 billion compared with $2.23 billion as of Dec. 31, 2024.
Its adjusted free cash outflow (without Eve) for the second quarter of 2025 totaled $161.6 million compared with $215.1 million in the prior-year period.
The net cash used in operating activities amounted to $113.6 million compared with $275.4 million at the end of the second 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 $7.41 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.
Leidos Holdings, Inc.’s ((LDOS - Free Report) ) second-quarter 2025 adjusted earnings of $3.21 per share beat the Zacks Consensus Estimate of $2.63 by 22.1%. The bottom line also improved 22.1% from $2.63 registered in the prior-year quarter.
Total revenues of $4.25 billion beat the Zacks Consensus Estimate of $4.23 billion by 0.5%. The top line also improved 2.9% year over year, driven by increased demand across all customer segments, especially Defense Systems, thanks to strong demand for innovative military products.
The Boeing Company ((BA - Free Report) ) incurred an adjusted loss of $1.24 per share in the second quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of $1.54. The bottom line improved from the year-ago quarter’s reported loss of $2.90 per share.
Revenues amounted to $22.75 billion, which outpaced the Zacks Consensus Estimate of $21.86 billion by 4.1%. The top line also surged 34.9% from the year-ago quarter’s reported figure of $16.87 billion.
RTX Corporation’s ((RTX - Free Report) ) second-quarter 2025 adjusted earnings per share of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41.
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.
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Embraer's Q2 Earnings Miss Estimates, Revenues Increase Y/Y
Key Takeaways
Shares of Embraer S.A. ((ERJ - Free Report) ) gained 2.1% to reach $58.39 on Aug. 8, following the release of its second-quarter 2025 results.
The company reported a second-quarter 2025 adjusted loss of 2 cents per American Depository Share (ADS), which missed the Zacks Consensus Estimate for earnings of 47 cents. The bottom line also deteriorated significantly from earnings of 44 cents per ADS registered in the year-ago quarter.
The company reported GAAP earnings of 43 cents per ADS compared with 54 cents in the second quarter of 2024.
Embraer’s Total Revenues
Revenues totaled $1.82 billion, up 21.8% year over year, driven by higher revenues from all of ERJ’s business segments, especially Executive Aviation. The figure also surpassed the Zacks Consensus Estimate of $1.67 billion by 8.9%.
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 61 jets in the quarter. It delivered 19 commercial and 38 executive (21 light and 17 midsize) jets compared with 19 commercial and 27 executive (20 light and seven midsize) jets in the prior-year quarter.
The backlog at the end of the first quarter was $29.7 billion, higher than the previous quarter’s figure of $26.4 billion.
ERJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $549 million, up 64% year over year. The year-over-year improvement was driven by price discipline, higher volumes and better product mix.
Defense & Security: This unit generated revenues of $221 million, which improved 18% year over year. The upside was driven by solid revenue recognition from the A-29 Super Tucano jet program.
Commercial Aviation: This segment recorded revenues worth $577 million, up 4% year over year.
Services & Support: This segment recorded revenues worth $456 million, up 13% year over year, driven by higher volumes in the Commercial Aviation business and the ramp-up in the OGMA GTF engine shop.
Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment amounted to $14 million, up 13% year over year. This upside was driven by the reclassified landing gear division.
Operational Highlights for ERJ
Embraer’s operating income amounted to $179.5 million compared with $127.9 million in the second quarter of 2024.
The company posted an adjusted EBITDA of $245.5 million compared with $190.4 million a year ago.
Financial Update for ERJ
As of June 30, 2025, ERJ’s cash and cash equivalents amounted to $1.31 billion compared with $2.23 billion as of Dec. 31, 2024.
Its adjusted free cash outflow (without Eve) for the second quarter of 2025 totaled $161.6 million compared with $215.1 million in the prior-year period.
The net cash used in operating activities amounted to $113.6 million compared with $275.4 million at the end of the second 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 $7.41 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 Q2 Defense Releases
Leidos Holdings, Inc.’s ((LDOS - Free Report) ) second-quarter 2025 adjusted earnings of $3.21 per share beat the Zacks Consensus Estimate of $2.63 by 22.1%. The bottom line also improved 22.1% from $2.63 registered in the prior-year quarter.
Total revenues of $4.25 billion beat the Zacks Consensus Estimate of $4.23 billion by 0.5%. The top line also improved 2.9% year over year, driven by increased demand across all customer segments, especially Defense Systems, thanks to strong demand for innovative military products.
The Boeing Company ((BA - Free Report) ) incurred an adjusted loss of $1.24 per share in the second quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of $1.54. The bottom line improved from the year-ago quarter’s reported loss of $2.90 per share.
Revenues amounted to $22.75 billion, which outpaced the Zacks Consensus Estimate of $21.86 billion by 4.1%. The top line also surged 34.9% from the year-ago quarter’s reported figure of $16.87 billion.
RTX Corporation’s ((RTX - Free Report) ) second-quarter 2025 adjusted earnings per share of $1.56 beat the Zacks Consensus Estimate of $1.45 by 7.6%. The bottom line also improved 10.6% from the year-ago quarter’s level of $1.41.
RTX’s second-quarter sales totaled $21.58 billion, which surpassed the Zacks Consensus Estimate of $20.53 billion by 5.1%. The top line also surged a solid 9.4% from $19.72 billion recorded for the second quarter of 2024.