Embraer S.A. Adr (EMBJ)
NYSE:EMBJ
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Embraer
(NYSE:EMBJ)
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Rating:56Neutral
Price Target:
$60.00
▼(-11.71% Downside)
Action:Reiterated
Date:05/14/26
The score is held back most by weak technicals (broadly below key moving averages with negative MACD) and a demanding valuation (P/E ~80 with a low yield). These are partially offset by improving fundamentals versus prior loss years and a constructive earnings-call outlook supported by record backlog and growth guidance, though margin and cash-flow durability remain key risks.
Positive Factors
Record backlog & order momentum
A record, multi-billion-dollar backlog provides durable revenue visibility and underpins delivery schedules for 2026–2028. High firm orders and options reduce short-term demand risk, support production planning, and create a multi-year stream of aftermarket revenues as new fleets enter service.
Negative Factors
Margin compression & volatility
Sustained margin erosion undermines the company's ability to convert sales into durable profits and cash. Low commercial margins and step-downs since peak years imply structural pressure from mix, ramp costs or pricing, which could cap long-term profitability unless cost or mix improvements materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog & order momentum
A record, multi-billion-dollar backlog provides durable revenue visibility and underpins delivery schedules for 2026–2028. High firm orders and options reduce short-term demand risk, support production planning, and create a multi-year stream of aftermarket revenues as new fleets enter service.
Read all positive factors
Embraer (EMBJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.14B
Dividend Yield0.08%
Average Volume (3M)1.72M
Price to Earnings (P/E)80.2
Beta (1Y)0.73
Revenue Growth18.94%
EPS Growth-21.66%
CountryUS
Employees20,923
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.70
Shares Outstanding185,116,260
10 Day Avg. Volume2,467,863
30 Day Avg. Volume1,718,406
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.42
Price to Sales (P/S)1.56
P/FCF Ratio30.56
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue1.49
Enterprise Value/Gross Profit8.42
Enterprise Value/Ebitda19.63
Forecast
1Y Price Target
$79.40Price Target Upside16.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.8
Revenue Forecast (FY)$8.48B
Embraer Business Overview & Revenue Model
Company Description
A Brazilian aerospace and defense company that designs, develops, manufactures and services commercial, executive and agricultural aircraft, plus defense & security systems and eVTOL technologies....
How the Company Makes Money
Embraer makes money primarily by selling aircraft and by providing higher-margin aftermarket services over the life of the fleet. In Commercial Aviation, revenue is generated from the sale and delivery of regional and narrowbody commercial jets to...
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 | 7.95B | 7.58B | 6.39B | 5.27B | 4.54B | 4.20B |
| Gross Profit | 1.40B | 1.33B | 1.15B | 909.60M | 912.20M | 655.85M |
| EBITDA | 602.35M | 724.10M | 1.01B | 598.20M | 228.40M | 479.90M |
| Net Income | 311.79M | 351.90M | 352.50M | 164.00M | -185.40M | -44.70M |
Balance Sheet | ||||||
| Total Assets | 12.95B | 12.92B | 11.82B | 10.78B | 10.14B | 10.15B |
| Cash, Cash Equivalents and Short-Term Investments | 2.11B | 2.63B | 2.20B | 2.15B | 2.31B | 2.57B |
| Total Debt | 2.81B | 2.71B | 2.60B | 2.98B | 3.27B | 4.09B |
| Total Liabilities | 9.29B | 9.11B | 8.48B | 7.74B | 7.32B | 7.38B |
| Stockholders Equity | 3.27B | 3.44B | 3.08B | 2.79B | 2.57B | 2.67B |
Cash Flow | ||||||
| Free Cash Flow | 380.22M | 386.10M | 405.00M | 186.20M | 495.30M | 247.10M |
| Operating Cash Flow | 648.30M | 870.00M | 871.20M | 617.00M | 751.30M | 515.30M |
| Investing Cash Flow | -633.92M | -611.70M | -599.70M | -447.60M | -109.50M | -131.60M |
| Financing Cash Flow | 497.04M | 146.10M | -335.70M | -348.70M | -669.20M | -441.04M |
Embraer Technical Analysis
67.96
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 67.96 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 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...
Embraer Shareholders Approve 2025 Results, Dividend Payout and New Fiscal Council
Apr 29, 2026
On April 29, 2026, Embraer held its annual general shareholders’ meeting digitally via Microsoft Teams, with investors holding 69.76% of capital stock in attendance. Shareholders approved the 2025 management accounts and financial statements...
Embraer Hits Record US$32.1 Billion Backlog in 1Q26 as Deliveries Surge and Orders Climb
Apr 27, 2026
On April 27, 2026, Embraer reported that its order backlog reached a record US$32.1 billion in the first quarter of 2026, its sixth consecutive all‑time high, driven by a 22% year‑over‑year increase across segments. The company d...
Embraer Names Veteran Executive as New Finance and Investor Relations Chief
Apr 10, 2026
On April 10, 2026, Embraer announced that its Board of Directors elected Felipe Santana Santiago de Lima as Executive Vice President, Financial Investor Relations, effective April 13, 2026. Santana, currently Global Director of Treasury with 18 y...
Embraer CFO and Investor Relations Chief Resigns; CEO Assumes Interim Role
Apr 6, 2026
On April 6, 2026, Embraer announced that Antonio Carlos Garcia resigned as Executive Vice President, Financial Investor Relations, to pursue new professional opportunities after serving in the role since January 2020. The company credited him wit...
Embraer Lifts Q1 2026 Deliveries 47% and Raises Output Targets
Apr 2, 2026
On April 2, 2026, Embraer reported that it delivered 44 aircraft in the first quarter of 2026, a 47% year-on-year increase from 30 jets in the same period of 2025, reflecting gains from its production leveling initiatives. Commercial Aviation hand...
Embraer Files Routine March 2026 Form 6-K With U.S. SEC
Mar 31, 2026
In March 2026, Embraer S.A., the Brazilian aerospace manufacturer listed in the U.S. as a foreign private issuer, submitted a Form 6-K to the Securities and Exchange Commission. The filing confirms that Embraer continues to report under Form 20-F,...
Embraer Wins Major Finnair Order for Up to 46 E195-E2 Jets
Mar 23, 2026
On March 23, 2026, Embraer announced that Finnair has selected its E195-E2 jet in a deal for up to 46 aircraft, including 18 firm orders, 16 options and 12 purchase rights. The aircraft, configured with 134 seats, will start delivering in the seco...
Embraer Posts Record 2025 Revenue and Backlog, Sets Higher 2026 Targets
Mar 6, 2026
Embraer reported record 2025 annual revenue of US$7.58 billion and its highest-ever firm order backlog of US$31.6 billion, according to results released in São Paulo on March 6, 2026. The company delivered 244 aircraft in 2025, up 18% from 20...
Embraer Launches R$2 Billion Share Buyback Program Approved on March 5, 2026
Mar 6, 2026
On March 5, 2026, Embraer’s board approved a new share buyback program authorizing the repurchase of up to 10,932,998 common shares, equivalent to about 1.5% of its 722.8 million outstanding shares, over a 12‑month period starting Marc...
Embraer Issues 2026 Guidance With Higher Revenue and Delivery Targets
Mar 6, 2026
On March 6, 2026, Embraer released its financial and operational guidance for 2026, outlining expected aircraft deliveries and key performance indicators for the year. Management emphasized that these figures are projections subject to macroeconom...
Embraer Posts Record 2025 Revenue and Backlog on Strong Jet Orders and Deliveries
Mar 6, 2026
Embraer reported record revenue, backlog and deliveries for 2025, highlighting double‑digit growth across core segments and achieving its 2025 guidance. The company’s consolidated backlog rose to about $31.6 billion by the end of 2025,...
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.