We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Embraer's Q3 Earnings Fall Year Over Year, Revenues Rise
Read MoreHide Full Article
Key Takeaways
Embraer's Q3 revenues rose 18.4% year over year to $2B, led by strength across all business segments.
The company delivered 62 jets, lifting its backlog to $31.3B from $29.7B in the prior quarter.
Higher costs and tariffs pressured margins, offsetting gains from Commercial and Defense segments.
Share price of Embraer S.A. (EMBJ - Free Report) rose 4.1% to $64.58 on Nov. 5, following its third-quarter 2025 results.
The company reported a third-quarter 2025 adjusted earnings of 30 cents per American Depository Share (ADS), which deteriorated significantly from $1.20 per ADS registered in the year-ago quarter.
The company reported GAAP earnings of 64 cents per ADS compared with 97 cents in the third quarter of 2024.
Embraer’s Total Revenues
Revenues totaled $2 billion, up 18.4% year over year, driven by higher revenues from all of ERJ’s business segments, especially Executive Aviation.
EMBJ’s Order & Delivery
Embraer delivered 62 jets in the quarter. It delivered 20 commercial and 41 executive (23 light and 18 midsize) jets compared with 16 commercial and 41 executive (22 light and 19 midsize) jets in the prior-year quarter.
The backlog at the end of the third quarter was $31.3 billion, higher than the previous quarter’s figure of $29.7 billion.
EMBJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $583 million, up 4% year over year. However, the gross margin decreased from 23.4% to 18.7% a year ago because of product mix, U.S. import tariffs and higher costs.
Defense & Security: This unit generated revenues of $278 million, which improved 27% year over year. The upside was due to higher KC-390 volumes and a one-off positive contract-related adjustment.
Commercial Aviation: This segment recorded revenues worth $618 million, up 31% year over year. This was due to better product mix and higher volumes and prices.
Services & Support: This segment recorded revenues worth $493 million, up 16% year over year, driven by higher volumes across all segments, particularly in Commercial Aviation, Executive Aviation and the ramp-up of 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 $32 million, up 150% year over year. This upside was driven by the inclusion of the reclassified landing gear division in early 2025.
Operational Highlights for EMBJ
Embraer’s operating income amounted to $159.6 million compared with $285.2 million in the second quarter of 2024.
The company posted an adjusted EBITDA of $236.3 million compared with $356.6 million a year ago.
Financial Update for EMBJ
As of Sept. 30, 2025, ERJ’s cash and cash equivalents amounted to $1.67 billion compared with $2.23 billion as of Dec. 31, 2024.
Its adjusted free cash outflow (without Eve) for the third quarter of 2025 totaled $300.3 million compared with $241.1 million in the prior-year period.
The net cash generated in operating activities amounted to $381.3 million against cash used $337 million at the end of the third 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 revenues to be in the range of $7.0-$7.5 billion. The Zacks Consensus Estimate for revenues is pegged at $7.44 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.
The Boeing Company (BA - Free Report) incurred an adjusted loss of $7.47 per share in the third quarter of 2025, wider than the Zacks Consensus Estimate of a loss of $3.68. The bottom line improved from the year-ago quarter’s reported loss of $10.44 per share.
Its revenues amounted to $23.27 billion, which outpaced the Zacks Consensus Estimate of $21.92 billion by 6.2%. The top line also surged 30.4% from the year-ago quarter’s reported figure of $17.84 billion.
Textron Inc. (TXT - Free Report) reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.
The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.
RTX Corporation’s (RTX - Free Report) third-quarter 2025 adjusted earnings per share (EPS) of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Embraer's Q3 Earnings Fall Year Over Year, Revenues Rise
Key Takeaways
Share price of Embraer S.A. (EMBJ - Free Report) rose 4.1% to $64.58 on Nov. 5, following its third-quarter 2025 results.
The company reported a third-quarter 2025 adjusted earnings of 30 cents per American Depository Share (ADS), which deteriorated significantly from $1.20 per ADS registered in the year-ago quarter.
The company reported GAAP earnings of 64 cents per ADS compared with 97 cents in the third quarter of 2024.
Embraer’s Total Revenues
Revenues totaled $2 billion, up 18.4% year over year, driven by higher revenues from all of ERJ’s business segments, especially Executive Aviation.
EMBJ’s Order & Delivery
Embraer delivered 62 jets in the quarter. It delivered 20 commercial and 41 executive (23 light and 18 midsize) jets compared with 16 commercial and 41 executive (22 light and 19 midsize) jets in the prior-year quarter.
The backlog at the end of the third quarter was $31.3 billion, higher than the previous quarter’s figure of $29.7 billion.
EMBJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $583 million, up 4% year over year. However, the gross margin decreased from 23.4% to 18.7% a year ago because of product mix, U.S. import tariffs and higher costs.
Defense & Security: This unit generated revenues of $278 million, which improved 27% year over year. The upside was due to higher KC-390 volumes and a one-off positive contract-related adjustment.
Commercial Aviation: This segment recorded revenues worth $618 million, up 31% year over year. This was due to better product mix and higher volumes and prices.
Services & Support: This segment recorded revenues worth $493 million, up 16% year over year, driven by higher volumes across all segments, particularly in Commercial Aviation, Executive Aviation and the ramp-up of 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 $32 million, up 150% year over year. This upside was driven by the inclusion of the reclassified landing gear division in early 2025.
Operational Highlights for EMBJ
Embraer’s operating income amounted to $159.6 million compared with $285.2 million in the second quarter of 2024.
The company posted an adjusted EBITDA of $236.3 million compared with $356.6 million a year ago.
Financial Update for EMBJ
As of Sept. 30, 2025, ERJ’s cash and cash equivalents amounted to $1.67 billion compared with $2.23 billion as of Dec. 31, 2024.
Its adjusted free cash outflow (without Eve) for the third quarter of 2025 totaled $300.3 million compared with $241.1 million in the prior-year period.
The net cash generated in operating activities amounted to $381.3 million against cash used $337 million at the end of the third 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 revenues to be in the range of $7.0-$7.5 billion. The Zacks Consensus Estimate for revenues is pegged at $7.44 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.
EMBJ’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
The Boeing Company (BA - Free Report) incurred an adjusted loss of $7.47 per share in the third quarter of 2025, wider than the Zacks Consensus Estimate of a loss of $3.68. The bottom line improved from the year-ago quarter’s reported loss of $10.44 per share.
Its revenues amounted to $23.27 billion, which outpaced the Zacks Consensus Estimate of $21.92 billion by 6.2%. The top line also surged 30.4% from the year-ago quarter’s reported figure of $17.84 billion.
Textron Inc. (TXT - Free Report) reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.
The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.
RTX Corporation’s (RTX - Free Report) third-quarter 2025 adjusted earnings per share (EPS) of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.