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Embraer Logs Record Quarter and Pushes for Tariff Relief

Embraer is pressing U.S. and Brazilian officials for tariff relief to safeguard its profit margins following record quarterly results.

Overview

  • Embraer reported Q2 revenue of $1.82 billion, a 22% increase year-on-year, and achieved a 10.5% adjusted EBIT margin while delivering 61 aircraft.
  • The firm order backlog surged to $29.7 billion, up 40% year-on-year, underpinning its reaffirmed 2025 targets of 77–85 E-Jets and 145–155 business jets.
  • A newly imposed 10% U.S. tariff on its E175 regional jet is projected to shave 90 basis points off full-year EBIT, prompting intensified lobbying efforts.
  • Advanced discussions in Brasília and Washington aim to restore zero-tariff status, and Embraer is renegotiating delivery terms with Azul over undelivered E-Jets.
  • The company plans a $500 million U.S. investment program, including expanding its Florida plant and exploring local assembly of the KC-390 transport to offset trade headwinds.