A Brazilian aerospace company that builds commercial airliners, executive jets, and military aircraft. Its E-Jet regional airliners fly worldwide, while its Phenom and Praetor lines serve business travelers. Founded in 1969 by the Brazilian government to build the EMB 110 Bandeirante, the name Embraer is a contraction of Empresa Brasileira de Aeronáutica. The Bandeirante, named for the 17th-century explorers who mapped Brazil's interior, was the first Brazilian-built aircraft ever exported.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Embraer's 2025 operating income fell 9% to $607.6M as prior-year Boeing arbitration proceeds did not recur
Embraer's fell in 2025 after two years of growth. rose 18.5% to $7,577.5M and was 17.5%, but operating income dropped 9% to $607.6M as the prior year's Boeing arbitration proceeds lifted other income then and not now. The company closed the year with a record $31.6B and stable of $870.0M.
Key takeaways
fell 9% to $607.6M as other income dropped $164.9M after the prior year's Boeing arbitration proceeds did not recur, while selling and research expenses rose.
rose 18.5% to $7,577.5M, driven by a 36.5% increase in Defense & Security revenue and a 19.2% increase in Executive Aviation deliveries to 155 units.
contracted 0.5 points to 17.5% as cost of sales grew faster than , with Executive Aviation margin declining to 19.2% on material and tariff costs.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk is concentrated in fixed-rate USD debt; foreign exchange risk arises from net real liabilities and is partially hedged with derivatives.
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Total debt was $2,593.8 million at year-end 2025, with 91% of USD-denominated debt at fixed rates and only 9% floating, limiting sensitivity.
A hypothetical 100 rate change would have a limited impact on given the small floating-rate portion, though fair values of fixed-rate debt are sensitive to market rates.
Net was stable at $870.0M and reached a record $31.6B, up 20% .
Commercial Aviation rose 7.3% to $2,369.8M on 78 deliveries, and Services & Support revenue increased 17.7% to $1,925.6M on parts demand and a new engine contract at OGMA.
What changed
2025 delivery of 77–85 commercial and 145–155 executive jets: actual commercial deliveries were 78 and executive were 155, within range.
KC-390 Millennium cadence: Defense & Security rose 36.5% in 2025, against the prior-year watch on order book and delivery pace.
E175-E2 program: the three-year pause announced in 2022 continued, with Item 3 noting development remains paused due to unchanged U.S. scope clauses.
Record $26.3B conversion: backlog grew to $31.6B, up 20%, with rising 18.5% on higher deliveries and services.
Boeing arbitration: proceeds appeared in 2024 other income; their absence in 2025 cut other income $164.9M and drove the decline.
What to watch
2026 commercial and executive jet delivery volumes against 2025's 78 and 155 units
KC-390 Millennium order book and delivery cadence as Defense & Security's largest program
E175-E2 program status as the three-year pause announced in 2022 elapses
U.S. tariff measures on Brazilian exports and their effect on Executive Aviation material costs
Foreign exchange exposure is driven by real-denominated costs exceeding revenues (3.4% of revenues vs. 13.5% of costs in reais), creating a net short real position.
The company uses derivative instruments to manage foreign currency cash flow volatility, with outstanding real derivatives showing a net asset of $5.8 million at year-end.
Net real exposure after derivatives was a liability of $8.7 million, while net euro exposure was a $46.4 million asset, reflecting currency mismatches in assets and liabilities.
Credit risk is managed through investment-grade counterparties for cash, ongoing credit evaluations for customers, and monitoring of supplier financial conditions.
Embraer faces risks from customer concentration, supply chain reliance, geopolitical tensions, and evolving regulations that could materially affect operations and financial results.
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A limited number of key customers dominate : 93.7% of EMBRAER 175 firm orders from 3 operators, and 77.1% of E-Jets E2 orders from 7 airlines and 3 lessors.
Supply chain concentration is high, with 73.7% of production costs from external suppliers, including , and limited alternatives for certain key components.
U.S. tariff measures, including a 10% general tariff and potential country-specific tariffs on Brazilian exports, could increase costs and reduce demand for Embraer's aircraft.
Brazilian tax reform and a new linear reduction of federal tax incentives (Supplementary Law No. 224/2025) may increase tax burdens, though the financial impact is expected to be limited.
Geopolitical conflicts and sanctions, particularly related to Russia-Ukraine and Middle East instability, pose supply chain, operational, and reputational risks.
The company paused E175-E2 development due to unchanged U.S. , limiting near-term growth in the 76-seat regional jet market.
Embraer is a global aerospace company operating in Commercial Aviation, Executive Aviation, Defense & Security, and Services & Support segments.
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Commercial Aviation (31.3% of 2025 ) produces E-Jets and E-Jets E2 families for regional airlines, with a 30% market share in sub-150-seat jets since 2004.
Executive Aviation (29.1% of ) offers Phenom and Praetor jets; the Phenom 300E was the most delivered light jet for 14 consecutive years.
Defense & Security (13.0% of ) centers on the KC-390 Millennium multi-mission transport and A-29 Super Tucano light attack aircraft, with over 1,400 defense aircraft sold to 60+ operators.
Services & Support (25.4% of ) provides , training, and parts through 80+ service centers, supporting over 4,391 aircraft globally.
Other segments (1.2% of ) include the Ipanema crop duster, development via Eve Air Mobility, and cybersecurity through Tempest.
2025 was US$7.6 billion, 96.6% USD-denominated, with North America at 58.7% of revenue; firm order reached US$31.6 billion.
Revenue rose 18.5% to $7.6B in 2025 on higher deliveries and services, but operating income fell 9% due to cost pressures and lower other income.
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Total grew 18.5% to $7,577.5M, driven by a 19.2% increase in Executive Aviation deliveries (155 units) and a 36.5% jump in Defense & Security revenue.
Commercial Aviation rose 7.3% to $2,369.8M on 6.8% higher deliveries (78 aircraft) and favorable pricing mix.
Services & Support increased 17.7% to $1,925.6M, fueled by higher parts demand and a new engine maintenance contract at OGMA.
contracted 0.5pp to 17.5% as cost of sales grew faster than , with Executive Aviation margin declining to 19.2% due to material and tariff costs.
fell 9% to $607.6M, largely because other income dropped $164.9M after the prior year's Boeing arbitration proceeds, while selling and research expenses rose.
Net remained stable at $870.0M; the firm order reached a record $31.6B, up 20% .