During its second-quarter earnings call, Embraer‘s leadership drew a sharp line under the most pressing challenge facing the company: a new U.S. tariff. CEO Francisco Gomes Neto described the situation as a “matter of concern,” specifically targeting a 10% nominal tariff imposed in March on its E175 jet, an aircraft fundamental to the U.S. regional airline network.
While Gomes Neto noted the effective rate is considerably lower due to the high content of U.S.-sourced components in the aircraft, he made the company’s position clear. The ultimate goal is the complete elimination of the tariff, an effort that Embraer has pursued since the measure’s introduction. The CEO’s call for a return to a “global zero tariff” market—the industry standard for the “last 40 years”—highlights the strategic importance of resolving this trade friction.
The company is not thinking, for the moment, to build commercial aviation production facilities in the US, a solution that allowed Airbus to avoid tariffs for its A220 fleet. Embraer is expanding the business jet production in its Melbourne, FL plant, but remains committed to produce the E-Jets in São José dos Campos, just outside São Paulo, Brazil.
This challenge emerges just as Embraer’s operational and financial metrics reach unprecedented heights. The company’s firm order backlog swelled to a historic $29.7 billion in the second quarter of 2025. This record figure provides robust revenue visibility and underscores the intense global demand for its products.
The financial performance for the quarter was equally strong. Embraer reported revenues of $1.819 billion, a 22% year-over-year increase and a record for any second quarter in its history. This growth was propelled by a remarkable 64% surge in revenues from the Executive Aviation division.
Supporting these financial results was a significant uptick in production. The company delivered 61 aircraft in the period, a 30% rise from the 47 delivered in the same quarter of 2024. The mix included 19 commercial jets, 38 executive jets, and 4 defense aircraft.
Despite the strong profitability, with an adjusted EBIT margin of 10.5%, the company’s adjusted free cash flow was US$(161.6) million. Embraer attributed this to a strategic buildup of inventory in preparation for an even higher number of deliveries in the upcoming quarters.
Looking forward, the company’s confidence remains unshaken. Embraer reaffirmed its full-year guidance for 2025, projecting deliveries of 77 to 85 commercial aircraft and 145 to 155 executive jets, with total revenues expected to land between $7.0 and $7.5 billion.
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