Embraer S.A. - ADR

Strong Financial Performance: Embraer reported a consolidated revenue of $7.6 billion for the year, a significant increase of 18% year-over-year, surpassing prior guidance. The company achieved a book-to-bill ratio of 1.7:1 for 2025, driven by strong demand across all business units, particularly Commercial Aviation (157 new E2 orders) and Executive Aviation (revenues reaching $2.3 billion).

Operational Success Amid Supply Chain Challenges: The company delivered 91 aircraft in Q4 2025 and maintained operational delivery guidance, overcoming existing supply chain hurdles. Forecasts for 2026 include deliveries of 80-85 commercial aircraft and 160-170 executive jets, suggesting growth despite ongoing supply chain pressures.

Positive Margin Outlook: Adjusted EBITDA margins for 2025 remained relatively steady at 11.7%, reflecting cost discipline despite the negative impact of U.S. tariffs, which added $54 million in costs. The expectations for 2026 indicate a solid EBIT margin between 8.7% and 9.3%, while ongoing efficiency in production is expected to drive margin growth.