Brazilian aerospace and defence manufacturer Embraer has reported revenues of $1.10bn for the first quarter (Q1) of 2025, marking a 23% increase from the same period a year ago.
This result represents the company’s strongest first-quarter performance since 2016.
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The Defense & Security segment’s revenue reached $139m, which is 72% higher compared to the same period last year.
The rise was attributed to a ‘stronger recognition’ of KC-390 aircraft, changes in customer mix, and the stage of product completion.
The segment’s adjusted earnings before interest and taxes (EBIT) margin improved to -1.6%, a notable recovery from -13.9% in the same period last year, driven by higher volumes and reduced expenses and negative extraordinary items.
Gross margin experienced a marginal increase, registering at 12.7% compared to the previous year’s figure of 12.3%. The company noted that there were no deliveries for the Defense & Security segment.
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By GlobalDataAcross the company, adjusted EBIT reached $62m, representing a 5.6% margin.
Net income attributable to Embraer shareholders reached $73.4m, and earnings per American Depositary Share were $0.3997, up from $28.7m and $0.1563, respectively, in the first quarter of 2024.
The company’s backlog reached a new all-time high of $26.4bn in the first quarter of 2025, a 25% increase year-over-year. The Defence & Security backlog grew by 73%.
The company also highlighted that the Q1 results were not affected by US tariffs.
Embraer reaffirms its 2025 guidance, anticipating revenues to be in the range of $7.0bn to $7.5bn, with an adjusted EBIT margin between 7.5% and 8.3%, and an adjusted free cash flow of $200m or higher for the year.
In April 2025, Embraer signed a memorandum of understanding with Denel to explore potential collaboration on the KC-390 Millennium aircraft, focusing on aerostructures and maintenance.
The KC-390 Millennium is a military transport aircraft deemed suitable for South African operations, noted the companies.
