Embraer S.a. (EMBJ)

Price$74.38Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares already assume major profit improvement, leaving little room for an ordinary delivery setback.

At roughly $13.3 billion of market value, the stock costs about 39 times 2025 profit using the supplied earnings adjusted for four common shares per U.S. depositary share. A current market-data source, including 2026 results, still shows about 30 times earnings from the latest twelve months. Management's broader 2025 free cash flow, meaning cash left after operating and investment needs excluding Eve, was $491 million, about 27 times market value; the simpler supplied operating-cash-flow-minus-capital-spending figure is $683 million, about 20 times. At 20 times earnings, annual profit would need to reach roughly $665 million, about 90% above 2025.

Big pictureSales have nearly doubled since 2020, but profit and cash still move sharply with aircraft deliveries.

Sales rose from $3.77 billion in 2020 to $7.58 billion in 2025, while operating profit improved from a $323 million loss to a $608 million profit. Bottom-line profit reached $352 million in 2025, roughly flat with 2024 despite much higher sales. Operating cash flow—cash generated by day-to-day business before investment spending—has been positive every year since 2021 and was $870 million in 2025. Cash timing remains uneven: company-reported free cash flow excluding Eve was $401 million in the second quarter of 2026 yet still negative $46 million for the first half.

Business strengthA record order book and manageable debt support growth, while buying back shares helps prevent each investor's ownership from shrinking.

The order backlog, meaning firm orders not yet delivered, reached $34.5 billion, about 4.6 times 2025 revenue and 16% above a year earlier. Defense backlog rose 42%, while services reached $5.5 billion, adding work less tied to new commercial-jet deliveries. Embraer excluding Eve had only $215 million of net debt, meaning borrowings exceeded cash and investments by that amount, and 95% of borrowings were long term. It repurchased 10.93 million common shares in March 2026 after 11.87 million in 2025, though treasury shares can later fund employee compensation rather than disappear permanently.

What could change the storyFaster profit gains could justify today's high price; weaker cash from deliveries would make it harder.

The bull case is that record orders, deliveries, and faster-growing defense and services keep profit improving. Management now expects an operating profit margin—the share of sales left after operating costs—of 10.0%–10.6% and at least $400 million of company-reported free cash flow excluding Eve. The bear case is that most of the guidance increase came from a $68 million tax credit and $38 million of tariff relief; only about $4 million came from a better business outlook. Sustained annual cash generation near $700 million would support the current valuation; falling below the $400 million floor would weaken it.

AI: News

Guidance raised after record quarterRecord second-quarter sales and a stronger profit forecast improved expectations, but temporary benefits drove most of the upgrade.

On August 10, Embraer reported second-quarter revenue of $2.235 billion, up 23%, and adjusted operating profit of $296.9 million. It lifted expected operating profit as a share of sales to 10.0%–10.6% and doubled its minimum free-cash-flow target to $400 million. However, $68 million of the roughly $110 million forecast increase came from an extraordinary tax credit and $38 million from U.S. tariff relief. Reuters reported the shares rose about 7% that day; the timing suggests a positive reaction but does not prove the release caused the full move.

Backlog sets seventh recordA record volume of firm orders gives Embraer more future work, especially in defense and commercial aircraft.

On July 24, firm orders not yet delivered reached $34.5 billion, 16% above a year earlier and the seventh consecutive quarterly record. Commercial aviation stood at $15.1 billion, defense at $6.1 billion, and services at $5.5 billion. Defense orders rose 42%, helped by a United Arab Emirates agreement for 10 firm C-390 aircraft plus 10 options. This supports years of production, but the value depends on orders converting into deliveries, profit, and cash rather than cancellations or delays.

Deliveries hit sixteen-year highHigher aircraft deliveries show production is improving and support the sales growth already reflected in forecasts.

On July 2, Embraer said it delivered 65 aircraft in the second quarter, its strongest second-quarter result in 16 years. First-half deliveries reached 109, about 20% above the prior year. Executive-jet deliveries rose 18% from a year earlier and commercial deliveries rose 5%. The company kept its 2026 targets of 80–85 commercial aircraft and 160–170 executive jets. Better delivery timing matters because aircraft makers recognize much of their revenue and cash when planes are handed to customers.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$7.58B	$6.39B	$5.27B	$4.54B	$4.20B	$3.77B	$5.46B	$5.07B	$2.55B	$6.20B	$5.93B
Gross profit	$1.33B	$1.15B	$909.6M	$912.2M	$659.6M	$477.6M	$795.5M	$768.0M	$297.9M	$1.22B	$1.11B
Gross margin	17.53%	18.03%	17.26%	20.09%	15.72%	12.66%	14.56%	15.14%	11.70%	19.70%	18.75%
Research & development	$74.4M	$55.0M	$90.3M	$110.0M	$43.0M	$29.8M	$49.4M	$46.1M	$22.2M	$47.6M	$41.7M
Operating expenses	$721.1M	$485.6M	$595.1M	$1.02B	$458.3M	$801.0M	$872.5M	$732.7M	$493.7M	$1.01B	$779.8M
Operating income	$607.6M	$667.5M	$314.5M	−$110.5M	$201.3M	−$323.4M	−$77.0M	$35.3M	−$195.8M	$213.7M	$331.5M
Operating margin	8.02%	10.44%	5.97%	−2.43%	4.80%	−8.58%	−1.41%	0.70%	−7.69%	3.44%	5.59%
EBITDA	$867.1M	$911.1M	$556.2M	−$110.5M	$201.3M	−$222.2M	−$77.0M	$194.5M	−$64.3M	$408.2M	$493.4M
EBITDA margin	11.44%	14.25%	10.56%	−2.43%	4.80%	−5.89%	−1.41%	3.84%	−2.53%	6.58%	8.32%
Net income	$359.0M	$354.6M	$164.3M	−$203.5M	−$43.5M	−$728.3M	−$316.5M	−$171.2M	$280.0M	$180.3M	$80.8M
Net profit margin	4.74%	5.55%	3.12%	−4.48%	−1.04%	−19.31%	−5.79%	−3.38%	11.00%	2.91%	1.36%
Basic EPSper basic share	$0.48	$0.48	$0.22	-$0.25	-$0.06	-$0.99	-$0.44	-$0.24	$0.36	$0.24	$0.09
Diluted EPSper diluted share	$0.48	$0.48	$0.22	-$0.25	-$0.06	-$0.99	-$0.44	-$0.24	$0.36	$0.24	$0.09

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Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of EMBJ
Holder	Shares held
BRANDES INVESTMENT PARTNERS, LP	6.04M
JPMORGAN CHASE & CO	5.84M
MORGAN STANLEY	5.15M
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	4.55M
BANK OF AMERICA CORP /DE/	3.53M
Egerton Capital (UK) LLP	3.38M
GQG Partners LLC	3.19M
JENNISON ASSOCIATES LLC	2.73M
AMERICAN CENTURY COMPANIES INC	2.24M
GILDER GAGNON HOWE & CO LLC	2.1M
Carrhae Capital LLP	2.03M
GOLDMAN SACHS GROUP INC	1.84M
Itau Unibanco Holding S.A.	1.6M
AXIOM INVESTORS LLC /DE	1.47M
Amundi	1.46M
Nuveen, LLC	1.42M
Invesco Ltd.	1.39M
Artemis Investment Management LLP	1.26M
BECKER CAPITAL MANAGEMENT INC	1.22M
RENAISSANCE TECHNOLOGIES LLC	1.16M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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