Embraer Reaffirms 2025 Outlook, Urges End to Tariffs

SAO JOSE DOS CAMPOS, Brazil, May 6, 2025 — Embraer S.A. reaffirmed its full-year delivery and financial guidance Tuesday, saying U.S. tariffs have had a “limited impact” so far. Still, the company warned of pressure on operating margins and joined industry peers in advocating for the restoration of a zero-tariff regime in aviation.

The Brazilian planemaker, the world’s third-largest after Airbus and Boeing, projected 2025 deliveries of 77 to 85 commercial aircraft, and 145 to 155 business jets. The outlook remains unchanged despite ongoing trade tensions between the United States and several key manufacturing nations.

In a statement, Embraer said U.S.-sourced content in its aircraft softened the initial impact of tariffs introduced by the administration of former President Donald Trump. The company confirmed that its commercial aviation segment was unaffected in the first quarter, although it made adjustments to reduce the exposure of its Phenom and Praetor business jets.

Management estimates a potential 90 basis-point reduction in operating margin for the year due to the tariffs. However, it noted that further cost-cutting initiatives are underway to counteract that effect.

“We join other companies in calling for the return of zero tariff policy for the aviation sector, as has been the case for several decades,” Chief Executive Francisco Gomes Neto said during a call with analysts. He emphasized the global nature of aircraft manufacturing and supply chains.

In the first quarter, typically slower for aircraft manufacturers, Embraer posted $1.1 billion in net revenue—a 23% year-over-year increase and its highest first-quarter result since 2016. Adjusted EBITDA more than doubled to $108.6 million, lifting the company’s EBITDA margin to 9.8%, up from 5.2% a year earlier.

Despite the operational improvements, Embraer fell short of earnings expectations. It reported an adjusted net loss of $0.40 per share for the quarter, compared with analysts’ consensus estimate of a $0.01 gain, according to data from LSEG.

“In spite of this miss, the company’s operational results looked solid,” analysts at Citi wrote in a research note.

Shares traded on Brazil’s B3 exchange fell approximately 1% on Tuesday, trailing the broader Bovespa index, which gained 0.2%. Embraer stock had more than doubled in 2024 and hit an all-time high earlier this year.

Founded in 1969 and headquartered in São José dos Campos, Embraer has grown into a critical supplier of regional jets globally and remains a cornerstone of Brazil’s aerospace industry. The company has in recent years diversified its offerings, including defense and air mobility projects.

Executives said they remain focused on meeting 2025 targets, despite macroeconomic headwinds and geopolitical risk. Continued efficiency measures and a stable order backlog will be key in offsetting trade-related costs.

Industry analysts expect more aerospace manufacturers to voice concerns as tariffs continue to affect global sourcing and cost structures.

We join other companies in calling for the return of zero tariff policy for the aviation sector.