Embraer (EMBJ)
NYSE:EMBJ
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Embraer
(NYSE:EMBJ)
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Rating:66Neutral
Price Target:
$67.00
▲(0.36% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by improving fundamentals (revenue growth, return to profitability, and better leverage) but held back by free-cash-flow volatility and 2025 margin softness. The latest call adds support via upbeat 2026 growth/EBIT guidance and a record backlog, while technicals remain a headwind with negative MACD and the stock below key moving averages. Valuation is moderate-to-demanding with a low dividend yield.
Positive Factors
Record backlog & deliveries
A $31.6B firm backlog and 244 deliveries in 2025 provide multi-quarter revenue visibility and production leverage. Large booked orders reduce near-term demand risk, support steady delivery schedules and supply-chain planning, and underpin durable revenue growth and margin recovery over coming quarters.
Negative Factors
Tariff-driven margin pressure
U.S. import tariffs represent a structural policy risk that materially compressed 2025 margins and disproportionately hit Executive Aviation. Persistent or recurring tariff costs reduce pricing flexibility, depress segment profitability, and complicate multi-year margin recovery plans until policy clarity is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog & deliveries
A $31.6B firm backlog and 244 deliveries in 2025 provide multi-quarter revenue visibility and production leverage. Large booked orders reduce near-term demand risk, support steady delivery schedules and supply-chain planning, and underpin durable revenue growth and margin recovery over coming quarters.
Read all positive factors
Embraer (EMBJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.27B
Dividend Yield0.08%
Average Volume (3M)1.69M
Price to Earnings (P/E)35.4
Beta (1Y)0.86
Revenue Growth19.76%
EPS Growth-37.08%
CountryUS
Employees20,923
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.46
Shares Outstanding183,658,200
10 Day Avg. Volume1,571,145
30 Day Avg. Volume1,690,536
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 Cap1.07
Enterprise Value/Revenue1.73
Enterprise Value/Gross Profit9.86
Enterprise Value/Ebitda22.78
Forecast
1Y Price Target
$79.75Price Target Upside19.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.88
Revenue Forecast (FY)$8.46B
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:May 08, 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
78
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.58B | 6.39B | 5.27B | 4.54B | 4.20B |
| Gross Profit | 1.33B | 1.15B | 909.60M | 912.20M | 655.85M |
| EBITDA | 724.10M | 1.01B | 598.20M | 228.40M | 479.90M |
| Net Income | 351.90M | 352.50M | 164.00M | -185.40M | -44.70M |
Balance Sheet | |||||
| Total Assets | 12.92B | 11.82B | 10.78B | 10.14B | 10.15B |
| Cash, Cash Equivalents and Short-Term Investments | 2.63B | 2.20B | 2.15B | 2.31B | 2.57B |
| Total Debt | 2.71B | 2.60B | 2.98B | 3.27B | 4.09B |
| Total Liabilities | 9.11B | 8.48B | 7.74B | 7.32B | 7.38B |
| Stockholders Equity | 3.44B | 3.08B | 2.79B | 2.57B | 2.67B |
Cash Flow | |||||
| Free Cash Flow | 386.10M | 405.00M | 186.20M | 495.30M | 247.10M |
| Operating Cash Flow | 870.00M | 871.20M | 617.00M | 751.30M | 515.30M |
| Investing Cash Flow | -611.70M | -599.70M | -447.60M | -109.50M | -131.60M |
| Financing Cash Flow | 146.10M | -335.70M | -348.70M | -669.20M | -441.04M |
Embraer Technical Analysis
66.76
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 66.76 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 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,...
Embraer Posts Record US$31.6 Billion Backlog and 18% Delivery Growth for 2025
Jan 27, 2026
On January 27, 2026, Embraer reported a record company-wide backlog of US$31.6 billion for the fourth quarter of 2025, up 20% year over year, underpinned by strong demand across commercial, executive, and defense segments. The company delivered 91...
Embraer Reshapes Audit, Risk and Ethics Committee After External Member Resigns
Jan 26, 2026
On January 26, 2026, Embraer announced a change in the composition of its Audit, Risk and Ethics Committee following the resignation of external member João Cox Neto. The committee is now formed by coordinator Dan Ioschpe, members Claudia Sen...
Embraer Sets April 29, 2026 Date for Annual Shareholders’ Meeting
Jan 13, 2026
On January 13, 2026, Embraer S.A. announced to its shareholders and the market that it expects to hold its Annual General Meeting of Shareholders on April 29, 2026, in accordance with Brazilian securities regulation CVM Resolution No. 81/2022. The...
Embraer Appoints BTG Pactual as Market Maker to Boost Liquidity of EMBR3 Shares
Jan 12, 2026
On January 12, 2026, Embraer S.A. announced that it has hired BTG Pactual Corretora de Títulos e Valores Mobiliários S.A. to act as market maker for its common shares (EMBR3) on the B3 exchange, under Brazilian securities regulations and...
Embraer Boosts 2025 Deliveries to 244 Aircraft, Exceeding Prior Year and Hitting Guidance
Jan 6, 2026
On January 6, 2026, Embraer reported that it delivered 91 aircraft in the fourth quarter of 2025, up from 62 in the third quarter of 2025 and 75 in the fourth quarter of 2024, underscoring operational momentum across its commercial, executive, and...
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.