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Embraer
(NYSE:EMBJ)
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Rating:56Neutral
Price Target:
$70.00
▲(2.77% Upside)
Action:Reiterated
Date:06/07/26
The score is primarily supported by improved fundamentals (profitability recovery and healthier leverage versus prior years), but is held back by recent margin and free-cash-flow softening. Technical signals are bearish (below key moving averages with negative MACD), and valuation is not especially attractive given a high P/E and modest dividend yield.
Positive Factors
Large firm backlog
A US$32.1B backlog provides multi-month visibility into deliveries and revenue conversion, smoothing near-term demand volatility. It supports production planning, supply‑chain commitments and aftermarket attachment opportunities, underpinning revenue predictability and capacity utilization over the next 2–6 months.
Negative Factors
Margin compression
Margins have backed off from 2024 highs and TTM net margin is modest (~3.9%), indicating pressure from mix, costs or tariffs. Sustained margin compression would reduce operating leverage on higher volumes and limit the company’s ability to invest, fund R&D, or expand shareholder distributions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Large firm backlog
A US$32.1B backlog provides multi-month visibility into deliveries and revenue conversion, smoothing near-term demand volatility. It supports production planning, supply‑chain commitments and aftermarket attachment opportunities, underpinning revenue predictability and capacity utilization over the next 2–6 months.
Read all positive factors
Embraer (EMBJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.25B
Dividend Yield1.15%
Average Volume (3M)973.14K
Price to Earnings (P/E)40.3
Beta (1Y)0.70
Revenue Growth18.94%
EPS Growth-21.66%
CountryUS
Employees21,122
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)9.12
Shares Outstanding185,116,260
10 Day Avg. Volume843,576
30 Day Avg. Volume973,137
Financial Highlights & Ratios
PEG Ratio-2.93
Price to Book (P/B)3.42
Price to Sales (P/S)1.56
P/FCF Ratio30.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$83.25Price Target Upside22.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.81
Revenue Forecast (FY)$8.48B
Embraer Business Overview & Revenue Model
Company Description
Embraer SA engages in the design, manufacture, and sale of aircraft and its parts for commercial, defense, and executive aviation sectors. It operates through the following segments: Commercial Aviation, Defense and Security, Executive Jet Busines...
How the Company Makes Money
Embraer primarily makes money by selling aircraft and by earning recurring revenue from aftermarket and aviation services.
1) Aircraft sales (original equipment revenue)
- Commercial Aviation: Revenue is generated from the sale and delivery of re...
Embraer Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and commercial picture: record revenue and backlog, strong order momentum across Commercial, Executive and Defense segments, solid deliveries, improved cash position and disciplined capital allocation. These positives are partially offset by margin pressure from U.S. import tariffs, some nonrecurring infrastructure costs, ramp-up-related margin softness in Service & Support, and lingering supply-chain bottlenecks that keep delivery guidance conservative. Management provided constructive 2026 guidance that assumes a cautious stance on tariffs and highlights material upside should tariff exemptions persist.Positive Updates
Record Revenue and Backlog
Q4 revenue increased 15% to nearly $3.0B and full-year revenue reached $7.6B, up 18% YoY and above the high end of guidance. Company-wide backlog reached $31.6B (up ~20% quarter), with approximately $20B of customer options that represent meaningful upside and a consolidated book-to-bill of 1.7:1.
Negative Updates
Margin Compression and One-off Impacts
Adjusted EBIT margin for Q4 fell to 8.7% from 11.5% a year ago; adjusted net income for the year declined to $253M from $461M (2024). Adjusted net income margin fell to 3.3% in 2025 from 7.2% in 2024, reflecting one-offs and less favorable net results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Backlog
Q4 revenue increased 15% to nearly $3.0B and full-year revenue reached $7.6B, up 18% YoY and above the high end of guidance. Company-wide backlog reached $31.6B (up ~20% quarter), with approximately $20B of customer options that represent meaningful upside and a consolidated book-to-bill of 1.7:1.
Read all positive updates
Company Guidance
Embraer’s 2026 guidance calls for Commercial Aviation deliveries of 80–85 aircraft and Executive Aviation deliveries of 160–170 jets (midpoints imply roughly +6% YoY in both segments), consolidated revenue of $8.2–$8.5 billion (midpoint ≈ +10% vs. 2025’s $7.6B), an EBIT margin of 8.7%–9.3% (midpoint ~ $750M, ≈ +15% vs. 2025 adjusted EBIT of $657M), and adjusted free cash flow (ex‑Eve) of $200 million or higher; management reiterated a midterm goal to convert ~50% of EBITDA into free cash flow (2024–2026 cumulative FCF target ≈ $1.4B, ~50% of an implied ~$2.8B EBITDA). The guidance is presented conservatively given policy uncertainty around U.S. import tariffs (management noted ~$54M paid in 2025 plus ≈$25M inventory exposure, ~ $80M proxy, with most benefits expected to unwind across 2026–27), and is supported by a record backlog of $31.6B (plus ~ $20B in options) and 2025 financial/operational benchmarks including adjusted EBITDA $889M (11.7% margin), adjusted FCF $491M, and a stand‑alone net cash position of $109M.Embraer Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
63
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.80B | 41.50B | 39.54B | 25.90B | 24.29B | 23.56B |
| Gross Profit | 7.56B | 7.28B | 7.13B | 4.47B | 4.88B | 3.54B |
| EBITDA | 3.23B | 3.97B | 6.27B | 2.94B | 1.22B | 2.69B |
| Net Income | 1.68B | 1.93B | 2.18B | 806.09M | -991.84M | -250.69M |
Balance Sheet | ||||||
| Total Assets | 66.81B | 70.76B | 73.12B | 53.00B | 54.26B | 56.95B |
| Cash, Cash Equivalents and Short-Term Investments | 10.90B | 14.38B | 13.62B | 10.57B | 12.36B | 14.41B |
| Total Debt | 14.47B | 14.85B | 16.10B | 14.66B | 17.52B | 22.94B |
| Total Liabilities | 47.92B | 49.89B | 52.44B | 38.06B | 39.15B | 41.39B |
| Stockholders Equity | 16.88B | 18.87B | 19.02B | 13.70B | 13.74B | 14.96B |
Cash Flow | ||||||
| Free Cash Flow | 2.20B | 2.11B | 2.50B | 915.20M | 2.65B | 1.39B |
| Operating Cash Flow | 3.64B | 4.76B | 5.39B | 3.03B | 4.02B | 2.89B |
| Investing Cash Flow | -2.56B | -3.35B | -3.71B | -2.20B | -585.79M | -790.11M |
| Financing Cash Flow | 2.71B | 800.19M | -2.08B | -1.71B | -3.58B | -2.38B |
Embraer Technical Analysis
68.11
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMBJ, the sentiment is undefined. The current price of 68.11 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for EMBJ.
Embraer Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
Embraer Corporate Events
Embraer Files Routine July 2026 Form 6-K with U.S. SEC
Jul 24, 2026
Embraer S.A. filed a Form 6-K report for July 2026 with the U.S. Securities and Exchange Commission, confirming its status as a foreign private issuer and its use of Form 20-F for annual reporting. The filing, dated July 24, 2026, was signed by Ex...
Embraer Secures New Binter Order for Five E195-E2 Jets at Farnborough
Jul 21, 2026
On July 21, 2026, at the Farnborough Airshow in the U.K., Embraer announced that Spanish carrier Binter ordered five additional E195-E2 jets, along with four purchase rights. The deal marks Binter’s fourth E2 order and underscores the aircra...
Embraer Secures New Luxair E190-E2 Order at Farnborough
Jul 21, 2026
On July 21, 2026, at the Farnborough Airshow in the U.K., Embraer announced that Luxair has converted purchase rights for three E190-E2 jets into firm orders and added one extra purchase right. This follow-on deal lifts Luxair’s firm E2 orde...
Embraer Secures Abra Group Order for Up to 45 E195-E2 Jets
Jul 21, 2026
On July 21, 2026, Embraer announced from Farnborough that Abra Group has agreed to purchase 20 E195-E2 jets, with 10 purchase options and 15 purchase rights, for up to 45 aircraft. The largest model in Embraer’s E-Jet E2 family, the E195-E2 ...
Embraer Posts Best Second-Quarter Aircraft Deliveries in 16 Years
Jul 2, 2026
Embraer reported on July 2, 2026 that it delivered 65 aircraft in the second quarter of 2026, its strongest second-quarter performance in 16 years, representing a 48% increase quarter-on-quarter and 7% year-on-year. In the first half of 2026, tota...
Embraer Declares R$200 Million Second-Quarter Interest on Equity for 2026
Jun 19, 2026
On June 18, 2026, Embraer’s board approved interest on equity for the second quarter of the 2026 fiscal year totaling R$200 million, corresponding to R$0.28096472120 per ordinary share, to be credited against mandatory dividends for the year...
Embraer’s E2 Jet Program Tops 500 Orders as Azorra Adds 15 E195-E2s
Jun 5, 2026
On June 5, 2026, Embraer announced that U.S.-based lessor Azorra placed an additional firm order for 15 E195-E2 jets and secured purchase rights for 15 more, lifting its total firm E2 commitments from 39 to 54 aircraft. The deal, the third upsizin...
Embraer to Fully Redeem 7.000% 2030 Notes in June 2026
May 22, 2026
Embraer announced on May 21, 2026, that its indirect subsidiary Embraer Netherlands Finance B.V. has issued a notice to redeem in full all outstanding 7.000% notes due 2030, with the redemption scheduled for June 2, 2026. The redemption price will...
Embraer Files Form 6-K Reporting First-Quarter 2026 Results
May 8, 2026
Embraer S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission in May 2026, disclosing its results for the first quarter of 2026 as a foreign private issuer. The filing, dated May 8, 2026, confirms that the report was duly authoriz...
Embraer Posts Record Q1 2026 Revenue and Backlog, Reaffirms 2026 Guidance
May 8, 2026
In the first quarter of 2026, Embraer reported record first-quarter revenue of US$1.447 billion, up 31% year over year, driven by strong growth in Defense Security and Commercial Aviation. The company delivered 44 aircraft, a 47% increase from a ...
Embraer Wins Landmark UAE Order for Up to 20 C-390 Airlifters, Its First in the Middle East
May 4, 2026
On May 4, 2026, the UAE’s Tawazun Council for Defence Enablement awarded Embraer a contract for 10 firm C-390 Millennium military transport aircraft plus 10 options for the UAE Air Force and Air Defense. The deal includes developing local ma...
Embraer Declares 2025 Dividend and Sets May Record, Ex-Dividend and Payment Dates
Apr 30, 2026
At the annual shareholders’ meeting held on April 29, 2026, Embraer shareholders approved a dividend distribution totaling BRL 7,646,097.51, based on net income for the year ended December 31, 2025. The payout corresponds to BRL 0.0107414182...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.