Embraer, the world’s third-largest aircraft manufacturer behind Airbus and Boeing, reiterated its full-year financial and delivery targets on Tuesday.
The Brazilian planemaker reported a robust first-quarter performance, claiming that US tariffs imposed earlier this year had only a “limited impact” and had no effect on its results.
The company stated that the trade tariffs did not affect commercial aircraft operations during the first quarter.
Embraer remarked that the presence of US material in their aircraft helped mitigate tariffs’ impact.
Nonetheless, it made operational changes to reduce the exposure of its Phenom and Praetor executive jets to the trade dispute.
Despite a difficult global trade environment, Embraer appears to have weathered the storm with little interruption, setting itself up for a steady 2025 forecast.
Delivery forecast remains unchanged
Embraer reiterated its full-year forecast of delivering between 77 and 85 commercial jets.
For its executive aviation division, it sees deliveries in the range of 145 to 155 jets.
These ranges provide no deviation from previous guidance, which would imply that demand remains firm across both segments.
Aircraft manufacturers usually see a slower first quarter, however, Embraer just delivered 30 jets between January and March, seemingly well on track for its full-year targets.
It also kept its full-year revenue outlook intact, which calls for a range of $7.0 billion to $7.5 billion in revenue for all of 2025.
Growing revenue and core earnings
Embraer’s net revenues in the first quarter were $1.1 billion, a 23% increase year-over-year.
This is the company’s best Q1 performance since 2016.
Profitability-wise, adjusted EBITDA more than doubled to $108.6 million.
The rise in core earnings highlights a strong financial performance and operational efficiencies for the company.
The financial figures indicate that the business is capitalising on increased demand, consistent production cadence, and a diverse product line.
Operational adjustments to trade challenges
Embraer’s executive aviation business was hurt by tariffs in the first quarter, prompting the company to make necessary changes.
Adjustments have been taken to limit exposure to ongoing trade concerns, particularly with the United States.
The company’s safeguards appear to have paid off, cushioning its performance against broader economic and geopolitical challenges.
Like many companies around the world, Embraer has had to adjust its operations, but the firm has been nimble enough to remain on course with its strategic goals.
The additional burden of continued global uncertainty in trade and supply chains does not seem to have undermined one iota of Embraer’s degree of resilience and preparedness, evidenced by its Q1 results, which also left guidance unaltered.
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