Seeking Alpha • Apr 07

Embraer: $50 Billion In Contracted And Optioned Backlogs Bodes Well For FY 2026

Summary Embraer is rated Buy, supported by strong backlogs, conservative guidance, and attractive valuation versus peers. FY 2025 saw 18.5% revenue growth to $7.6B, with all segments showing healthy expansion and a record $31.6B backlog ($50B with options). Management's FY 2026 guidance appears conservative, setting up potential for revenue beats and margin expansion, especially in D&S. EMBJ trades at a 25–35% discount to key sector multiples, with improving operational efficiency and robust book-to-bill ratios across segments. Read the full article on Seeking Alpha

Seeking Alpha • Mar 17

Embraer: A Strategic Acquisition With A Long-Term Focus

Summary Embraer has shown strong revenue growth, improved margins, and record order backlog in 2024, reflecting efficient management and solid financial performance. Despite a high P/E ratio, Embraer is undervalued relative to its growth potential, supported by strong fundamentals and positive EPS growth projections. The company's strategic focus on efficiency and innovation positions it well in the market, with significant expansion expected in 2025 across all segments. Embraer's financial stability, improved credit rating, and long-term debt structure make it an attractive long-term investment despite sector and macroeconomic risks. Read the full article on Seeking Alpha

Seeking Alpha • Feb 10

Embraer: Largest Order For Executive Jets In History Opens New Opportunity

Summary I reiterate my buy recommendation for Embraer shares, which rose 152% in one year, outperforming Brazilian ADRs and sector competitors. Embraer received its largest executive jet order, potentially reaching $7 billion, boosting its order book by 26% to $29 billion. Despite high valuation, strong momentum suggests a return to a 16x EV/EBITDA multiple, implying a 33% upside and a target price of $58. Potential risks include supply chain issues and high valuation multiples, but strong cash flow predictability supports the bullish thesis. Read the full article on Seeking Alpha

Seeking Alpha • Nov 25

Embraer: Not A Buy For Now, But Worth Monitoring

Summary Embraer SA's ADR has more than doubled YTD, outperforming global airline and international stocks significantly. We touch upon a few reasons why Embraer is worth keeping on your watchlist. Forward valuations are not cheap, but the sturdy EBITDA outlook through FY26 may help mitigate that. ERJ is seeing strong momentum, but the risk-reward does not look appealing, and it remains one of the more overbought stocks in the aviation industry. Read the full article on Seeking Alpha

Seeking Alpha • Sep 20

Embraer Q2: Strong Demand, Improving Margins And Positive Outlook

Summary Despite cash flow pressures and rising debt, Embraer achieved a 38% annual increase in net income, with expectations of higher margins and profitability. Embraer's backlog of $21.1 billion, the highest in 7 years, and a balanced book-to-bill ratio support my positive outlook. Valuation indicators suggest a 17% upside potential, making Embraer an attractive investment despite a 90% share price increase this year. Read the full article on Seeking Alpha

Seeking Alpha • Aug 25

Embraer Stock Surges 84%: Updated Buy Rating And New Price Target

Summary Embraer stock has seen a nearly 220% increase since a buy rating in February and 84% since my last coverage, exceeding the price target. The company recorded margin expansion during the quarter, but this was driven by one-off items. Embraer faces supply chain challenges but sees revenue growth, margin improvement, and strong backlog, presenting opportunities for growth. Read the full article on Seeking Alpha

Seeking Alpha • Jun 11

Embraer: Ready To Fly Even Higher

Summary Embraer is an excellent option to capture the improvement in the aviation sector in 2024. The company's reliance on exports mitigates risk from the Brazilian economy. Embraer has good financial indicators and a favorable valuation, making it an attractive investment option with a potential 9.6% upside. Read the full article on Seeking Alpha

Seeking Alpha • Mar 28

Embraer: Filling The Boeing Gap?

Summary Embraer has completed a multi-year turnaround, with an improved cost structure and EBITDA margins of over 10%. Embraer is guiding for 20% revenue and EBITDA growth in 2024. The stock has performed well, with potential for positive surprises in the commercial aircraft segment and the hidden asset of its eVTOL subsidiary, Eve Holdings. Read the full article on Seeking Alpha

Seeking Alpha • Feb 26

Embraer Stock: Still A Buy Despite Downgrade And Miss

Summary Embraer's airplane deliveries for 2023 fell short of guidance, with 1-6 units fewer commercial airplanes and 5-15 units fewer executive jets delivered. Analysts are expecting stable year-over-year revenues and a 472% growth in earnings per share for Embraer's Q4 2023 earnings. Despite missing delivery guidance, analysts still consider ERJ stock a buy, but management's comments on supply chain health and 2024 deliveries will be crucial. Read the full article on Seeking Alpha

Seeking Alpha • Nov 28

Embraer: Getting More Attractive

Summary Embraer affirms 2023 guidance for deliveries, margins, and FCF, with increased deliveries expected in 2024. The company's stake in Eve Holding should be considered a free option and a way to gain exposure to the eVTOL sector. ERJ's operating update shows higher revenue in Service & Support, increased deliveries in Commercial Aviation and Executive Jet segments, and improved margins. Read the full article on Seeking Alpha

Seeking Alpha • Nov 14

Embraer Stock Is A Strong Buy

Summary Embraer S.A. stock has outperformed global markets, gaining nearly 50% since September 2022. Commercial aviation deliveries have increased, with a strong book-to-bill expected in Q4. Embraer has successfully deleveraged and reprofiled its debt, providing significant upside for the stock. Read the full article on Seeking Alpha

Seeking Alpha • Sep 29

Embraer: An Undervalued Contender Primed For Expansion

Summary Embraer, a Brazilian aerospace company, boasts a diverse market presence spanning commercial, executive, and defense aviation. Embraer's recent financing efforts and strong Q2 results indicate a favorable outlook for the company's growth and stability. While Embraer shows promise, it faces challenges tied to customer concentration, global competition, and demand volatility, alongside its sensitivity to global economic conditions. Read the full article on Seeking Alpha

Seeking Alpha • Sep 06

Embraer: Growth Potential, But Not So Adequate Financials

Summary Embraer has good prospects for growth due to the aging fleet of commercial and executive aircraft. Apart from that the company is positioned to benefit from the rising defense spending globally. Looking at the balance sheet, I am not so impressed. Embraer's liquidity and solvency are not adequate, in my opinion. Similarly mediocre is the situation with the company's profitability. The company is priced well below its peers but is overvalued based on DCF calculations. I give a hold rating because I like to see the company's management's efforts to improve its balance sheet and profitability. Read the full article on Seeking Alpha

Seeking Alpha • Aug 16

Embraer Stock Remains A Strong Buy After Q2 Earnings

Summary Embraer S.A.'s second quarter results showed improvement in commercial and executive aviation deliveries, but disappointing performance in defense and slower growth in services. The company's cash flow was negative in preparation for higher deliveries in the second half of the year, but its liquidity remains strong. Despite the stock's decline, analysts believe there is significant upside potential for Embraer, with a price target of $19.56 representing a 34% increase. Read the full article on Seeking Alpha

Seeking Alpha • Jun 30

Embraer: Eyes On The Future

Summary Embraer's ability to secure orders is somewhat constrained at this point. Sales in the small narrow body segment are slow for all OEMs. The Paris Airshow was not the big test for Embraer. The real test will be in the years to come with replacement demand speeding up in Europe and growth potential in Asia. Read the full article on Seeking Alpha

Seeking Alpha • Jun 01

Embraer Stock: Strong Buy After Wins In Asia

Summary Embraer booked progress in expanding customer footprints in Asia and the Middle East. Berkshire Hathaway-owned NetJets ordered a large quantity of executive jets. Embraer is paving the way for better, streamlined performance in defense. Read the full article on Seeking Alpha

Seeking Alpha • Jan 30

Embraer: An Earnings Rebound Supports Solid Free Cash Flow And A Bullish Chart Move

Summary Airline stocks have taken off in 2023 as travel demand continues and aircraft orders add up. Embraer features a low valuation using forward estimates and monster free cash flow. With a chart turning positive, a few catalysts could extend ERJ's rally. Brazil stocks were a big winner during the first few months of last year. Recently, though, the iShares MSCI Brazil ETF (EWZ) has underperformed the broader iShares MSCI Emerging Markets ETF (EEM) as China and other Asia economies appear to be on the mend. One Brazil name features a better chart with robust earnings prospects, however. Is there more runway for Embraer (ERJ) after a big ascent to jump-start 2023? Let’s climb aboard and check out ERJ. Brazil Underperforming Emerging Markets Stockcharts.com According to Bank of America Global Research, Embraer has become one of the largest aircraft manufacturers in the world. It is engaged in the designing, manufacturing, selling, and supporting activities that cater to the needs of three major segments, namely, commercial aviation, defense and security, and executive aviation. It has offices, subsidiaries, and customer service bases in China, France, Portugal, Singapore, and United States. The Brazil-based $2.4 billion market cap Aerospace and Defense industry company within the Industrial sector trades at a high 163.3 trailing 12-month GAAP price-to-earnings ratio and does not pay a dividend, according to The Wall Street Journal. There was bullish news in January when the firm confirmed it landed a new order for 15 aircraft, totaling $1.2 billion (half the market cap). That came after a revenue miss in its November report, but adjusted EPS verified above BofA’s outlook, leading to a free cash flow forecast increase. Challenges at Boeing and Airbus could prove to be a windfall for a firm like Embraer as demand for aircraft improves. On valuation, analysts at BofA see earnings having turned into the black in its FY 2022. EPS acceleration is expected this year with further gains through 2024. The Bloomberg estimate consensus is much more upbeat about Embraer’s profit outlook. If we apply $2 of earnings with a below-market 10 earnings multiple, that suggests shares are very undervalued – by perhaps 40% as a ballpark estimate. If the share price holds steady, then both the firm’s GAAP and operating earnings multiples will be in the single digits over the coming quarters and the EV/EBITDA ratio will be below market too. What’s particularly appealing to me is ERJ’s impressive free cash flow generation. Trading at just 3x FCF, shares are cheap. Embraer: Earnings, Valuation, Free Cash Flow Forecasts BofA Global Research Looking ahead, corporate event data provided by Wall Street Horizon show an unconfirmed Q4 2022 earnings date of Friday, March 10. Before that, Embraer’s management team is expected to present at the Credit Suisse 2023 Latin America Investment Conference 2022 this week. Also on the calendar is a February 7 interim sales data update that could move the stock. Finally, a shareholder meeting is slated for April 28. All of these events are volatility catalysts that traders should keep on their radars. Corporate Event Risk Calendar Wall Street Horizon The Technical Take With an impressive 3 out of 61 quant ranking by Seeking Alpha, I too see bullish features with ERJ. Notice in the chart below that shares recently broke out from a downtrend that dated back to the end of 2021. After peaking near its pre-pandemic highs, the stock plunged to under $8 during the middle of last year. Following a bounce, bears emerged at the falling 200-day moving average as Embraer consolidated.

Seeking Alpha • Jan 16

Embraer lands firm order for 15 new aircraft for $1.2B

Embraer (NYSE:ERJ) on Monday said it secured a new firm order for 15 new E195-E2 aircraft from an undisclosed customer. The order is valued at US$1.17 billion at list price and will be added to the Q4 2022 backlog.

Seeking Alpha • Dec 16

Embraer lands 2 heavy maintenance contracts worth $72M

Embraer (NYSE:ERJ) on Friday announced that Embraer Aircraft Maintenance Services in Macon, Georgia, has signed two heavy maintenance services agreements totaling $72 million. The contracts have been signed with Envoy Air and JSX and will provide each company with airframe maintenance and repair services offered by Embraer's portfolio of solutions.

Seeking Alpha • Nov 13

Embraer Q3 2022 Earnings Preview

Embraer (NYSE:ERJ) is scheduled to announce Q3 earnings results on Monday, November 14th, before market open. The consensus EPS Estimate is $0.10 (vs. -$0.18 in 3Q21) and the consensus Revenue Estimate is $1.2B (+25.2% Y/Y). Over the last 2 years, ERJ has beaten EPS estimates 38% of the time and has beaten revenue estimates 38% of the time.

Seeking Alpha • Nov 03

Embraer's Stock Is Cheap Despite Transition Risk

Summary Recovery in commercial jets and focus on margins drive EBITDA. Services and corporate jets business sustain cash flow. Competition vs. Airbus and Scope Clauses is a risk to growth. Valuation at 5.4x of EV/EBITDA is far below 7.5x 20yr average and the sector's 9x. Innovative Upside: Electric urban aircraft and revamped turboprops. Summary Embraer S.A. (ERJ) is an aircraft engineering and manufacturing pioneer that is in transition from core regional jet production to higher seat narrow bodies, electric aircraft and modern turboprops, while service, defense and corporate segments provide slow growth and cashflow. The stocks valuation is well discounted, in my view, and if ERJ delivers results, the shares could double over the next three years. ERJ Summary Financial Estimates (Created by author with data from Embraer) Commercial Airplane Strategy Changing Regional Jets: Its bread-and-butter regional jet business has slowed significantly, the USA scope clause, that regulate what pilots can fly (lower wage regional vs higher wage larger jets) is limiting the expansion. The 175 E2, which would replace the 175, has not seen a single order, thus deliveries should be around 40 units per year for the 175. Competing with Airbus (EADSF): Embraer launched the 190/195 E2 family with 110 to 150 seats in direct competition with Airbus. According to the company they compete on price and more importantly on maintenance cost, which are 15% lower than the Airbus 320. However, Airbus has far greater firepower, they can bundle different units to airlines making price competition lopsided and more importantly the EU provides export subsidies that Brazil will never be able to meet. This makes competition difficult for Embraer as seen in its margins for this segment. The failed Boeing (BA) JV has left this business at a disadvantage with airlines and leasing companies are the main buyers. I assume margins will improve at the expense of volumes. This foray into the big leagues is ERJs primary risk. Corporate Jets: A bright spot with consistent growth and solid margins but relativity small vs the commercial segment. The company should sell 115 plus units a year, but the mix can lead to lower than consensus revenue/EBITDA. Aircraft Services: Airplanes require systematic maintenance, parts, and overhauls, ERJ has built a global network of to service its and third-party aircraft. This is the company's best business segment with high margins and should provide solid cashflow. As seen in the charts below, commercial aviation is the largest revenue source but had a negative margin pre covid19 as regional jet demand fell and the company entered the over 100 seat segment with the strategy to build and sell these aircraft in partnership with Boeing. ERJ Revenue Breakdown in US$m (Created by author with data from Embraer) ERJ EBIT Margin Breakdown (Created by author with data from Embraer) Innovation The Energia long shot: Turboprop executive/commercial airplanes that use sustainable fuel (SAE) looks great on paper. The competition is low, with very little innovation seen in the last 20yrs. According to Embraer this product is as quiet as a jet with far lower operating cost and great fuel efficiency. The development would cost US$1.2bn and the company is looking for a 50%/50% manufacturing partner, which should be an engine maker. The 400-unit non-binding order book is not enough to provide a launch commitment. ERJ new Turboprop segment (Created by Embraer) Eve Holding (EVEX): Urban air mobility via electric vertical take-off and landing aircraft, a mouth full and sounds futuristic. Not really, there are quite a few companies developing this segment, but Embraer has an advantage in its installed engineering, supply chain and certification capabilities. The 75% owned subsidiary (factoring in warrant conversion) has over US$7.1bn in orders that turn into firm backlog in 2024/2025 that could provide the capital for manufacturing. However, this depends on the pace of development, any delay would require a capital increase. Embraer would most likely not participate. Financial Estimates The company should see improved margins on cost initiatives, supply chain normalization. The engine supply chain may take to 2024 to normalize, the pandemic is still playing havoc on a lot of industries. The company should also raise prices on the commercial segment even if it means lower sales. EBITDA margins should recuperate to 11% and provide for debt reduction with leverage falling to 1x net debt / EBITDA by 2025.

Seeking Alpha • Sep 21

Embraer: Significantly Undervalued On An SOTP Basis

Summary ERJ is significantly undervalued. ERJ's 90% stake in EVEX's current market cap is 43% larger than ERJ's entire market cap. EVEX operates in a nascent industry that is estimated to have $760 billion global TAM. EVEX’s vehicle design is optimized for Urban Mobility. EVEX has strong scalability backed by ERJ support and strategic partnerships. Overview On a sum-of-the-parts ((SOTP)) basis, I believe Embraer (ERJ) is grossly undervalued. ERJ 90% stake of Eve Holding (EVEX) has a 40% larger equity value than ERJ's whole market capitalization. The disparity is unjustified given that ERJ's primary company is not worth $800 million and EVEX may be worth three to four times more than it is now (19 Sept 2022). The reason for investing in ERJ than EVEX is because it provides investors with a safer way to gain from EVEX's future upside as its core business is worth something. Whereas for EVEX, if the business fails to take off eventually, it could be worth 0. Business description As the thesis focuses on the value of EVEX, I will elaborate more on EVEX’s business than ERJ. ERJ is the world's largest maker of jets with up to 150 seats, based on the number of jets delivered over the past ten years. In addition to having a global customer base, this manufacturer also has a franchise footprint. With its wide range of products and services, ERJ meets the needs of the commercial airline, executive jet, and defense and security industries. As for EVEX, it is a leader in the development of cutting-edge Urban Air Mobility ((UAM)) solutions. The UAM solution is EVEX's primary offering, and it consists of electric vertical take-off and landing (eVTOL) design and production, maintenance and support services, fleet operations services performed in collaboration with partners, and a new Urban Air Traffic Management system that is intended to allow eVTOLs to safely and efficiently operate alongside conventional aircraft and drones in dense urban airspace. EVEX has no revenue as of FY21 and is expected to start generating revenue only in FY26. Investment thesis Given the importance of the SOTP valuation disparity in this report, the investment thesis discussed below focuses on ERJ's largest holding, EVEX. Let me state right away why I believe ERJ is vastly undervalued on an SOTP basis. It is likely that ERJ stock has been knocked down due to: Recent sell off with a slew of other plane manufacturers Recession and supply chain concerns which could delay ERJ’s core operations recovery ERJ’s listing in Brazil, which has exposure to FX headwinds and a higher market beta Huge TAM EVEX operates in a nascent industry that is estimated to have $760 billion global TAM. The increasing number of people living in cities, the worsening state of traffic, and the development of autonomous vehicle technologies have all contributed to a surge in interest in urban air mobility services. More than half of the world's population now lives in urban areas, and that number is only expected to grow in the coming decades to 66% by 2050, according to estimates by the United Nations. Because of this, urban transportation systems will be under extreme stress, and novel approaches will be required to alleviate the pressure. More and more communities are turning to air travel as a way to deal with urban traffic congestion, which wastes time and money and is estimated to cost the US economy $88 billion annually. Improvements in the technology for autonomous ground vehicles, in my opinion, have made unmanned air travel a real possibility in the future. By the year 2040, it is expected that 33 million autonomous ground vehicles will have been shipped all over the world, a number that is significantly higher than the 1 million units predicted to be shipped in 2025. EVEX 13 Apr 2022 Investor Presentation The expansion of the UAM market is also being fueled by the fact that travel times can be cut in half with a mobility service that costs roughly the same as other ground transportation options. Eighty-nine percent or more of over 14,000 consumers polled as part of EVEX's user assessment study indicated that they intended to make frequent use of UAM services (either daily, weekly, or monthly). In a survey done by EVEX, 83% of people said they would pay at least 1.5 times more for UAM services than for a taxi to save time. UAM services have the potential to address numerous issues related to rotorcraft operations, bringing the advantages of vertical air transport to the masses in a responsible and cost-effective manner. Direct operating costs for the EVEX’s eVTOL are predicted to be reduced by 65% when compared to conventional helicopters and by an additional 85% when the VTOL is flown unmanned in the future (source: EVEX's Apr'22 Investor Presentation) . Cheaper tickets for the general public should be possible with eVTOLs due to their lower operating costs. Helicopters are banned from many urban areas due to their disruptive noise levels (see here and here), but EVEX's eVTOL is planned to have a noise footprint that is 90 percent smaller than that of a helicopter (source: EVEX's Apr'22 Investor Presentation). Because of this, vertiports can be built in the middle of cities. EVEX 13 Apr 2022 Investor Presentation EVEX 13 Apr 2022 Investor Presentation Vehicle design is optimized for Urban Mobility EVEX's eVTOL has eight rotors for lift in all three flight phases, two propellers for forward motion, and two wings for smooth, noiseless flight. Currently, EVEX's eVTOL is designed to carry four passengers plus the pilot, but this number could increase to six with the addition of autonomous features. Thanks to its 100km range at takeoff, management believes EVEX will be able to handle 99% of UAM missions in urban areas. EVEX 13 Apr 2022 Investor Presentation Strong scalability is backed by ERJ support and strategic partnerships In my opinion, EVEX's partnership with ERJ will allow it to rapidly advance and reduce the risk associated with its UAM solution (Source: EVEX S1). The terms of the agreement give EVEX access to ERJ's extensive resources at a cost. Additionally, EVEX will be given priority access to all 5,000 ERJ employees, including 1,600 identified engineers with significant design and aeronautical expertise, and the ability to scale up or down resource utilization as needed. The royalty-free use of ERJ's background intellectual property in the UAM market is one of the most valuable benefits to EVEX. Because of the ERJ agreement, EVEX can save time and money compared to competitors and newcomers by not having to build its own infrastructure and by skipping a large part of the learning curve. EVEX 13 Apr 2022 Investor Presentation In addition to its robust strategic partnership with ERJ, I believe that EVEX's global partner network provides the company with significant commercial leverage and extensive market access. From fixed-wing and rotary-wing operators to experts in technology, renewable energy, ground infrastructure, and financing, EVEX has partnered with dozens of prominent companies. Also, EVEX's network of partners is global, which makes it easier for the company to reach important UAM markets around the world. EVEX 13 Apr 2022 Investor Presentation EVEX's strategy of working with third parties to expand its fleet operations business is particularly ingenious because it reduces the company's operational and financial risks. While some UAM members have discussed establishing their own flight operations on a city-by-city basis, EVEX has opted to expand its fleet services through partnerships rather than make massive initial CAPEX in order to remain competitive. For example, EVEX has made strategic alliances with Republic Airways and SkyWest to make sure that most cities in North America can be reached quickly and completely. EVEX 13 Apr 2022 Investor Presentation Significant revenue visibility and no debt reduce liquidity risks

Seeking Alpha • Sep 09

Embraer: An Optimistic Small Jet Maker Buy

Summary Embraer revenues failed to impress, margins expanded extremely well. Embraer expects a strong second half of the year. Embraer does not have the strongest product in the commercial aviation space, but its improved cost control could make it more attractive for investment in the aerospace industry. Embraer S.A. (ERJ) has been one of the companies that took a big hit from a combination of the pandemic and the problems that Boeing (BA) faces as a joint venture agreement with the U.S. jet maker was terminated. In this report, I will analyze the second quarter result of the Brazilian aerospace company and explain why I believe that shares of Embraer could offer a valuable investment opportunity, despite the fact that I am not impressed by the Embraer E2 family that is serving the Commercial Aviation market. Embraer's Q2 Revenues Are Not Impressive, Margins Are Q2 2022 revenues by segment (Embraer) In the first quarter of 2022, Embraer results were impacted by a nearly one-month shutdown due to the reintegration of the Commercial Aviation unit into the main company. Results took a hit, but it was important to realize that this stark decline in revenue was not driven by any operational issues such as the current supply chain issues faced throughout the industry. So, Embraer's Q2 results provide a better view on the state of things for Embraer. Revenues declined from $1.13 billion to $1.02 billion, marking a 10% decline, driven by lower sales in Commercial Aviation and Defense offset by higher Services & Support sales. The lower revenues were driven by lower Commercial Aviation deliveries and lower Super Tucano sales for Defense while Executive Aviation sales benefited from a better pricing environment. That 10% reduction can be attributed to supply chain disruptions, but Embraer is optimistic about the mid-term and cautiously optimistic about the year-end results. Embraer deliveries and backlog Q2 2022 (Embraer) All with all, I have some concerns about the delivery trajectory, but Embraer pointed out that they are just four commercial jets behind on their projections, which would point at a very strong second half of the year. Also, the backlog currently stands at a multi-quarter high with $17.8 billion. Embraer gross margins (Embraer) So, I am not quite impressed with revenues, but margins were good with only Defense being a big let-down. Year-over-year, we saw strong margin expansion in all segments. Even Commercial Aviation margins swung to a double-digit margin, and Executive Aviation and Services performed extremely well when considering the cost efficiency. Also, important to note is that sequentially, there was margin expansion. Commercial Aviation margins expanded from 11.3% to 13.2%, Executive Aviation margins went from 18.7% to 22.1%, Defense margins went from 14.4% to 28% and Services support margins which were already strong ticked up to 31.8% from 26.5%. So, sequentially we saw major improvement in the gross margins resulting in company-wide gross margins increasing to 22.9% from 9.5% in Q1 and 18.2% in the same quarter last year. So, the margin expansion that we were expecting was there. Embraer Q2 2022 results (Embraer) Year-over-year, adjusted net results were $39 million compared to $44 million in the same quarter last year. Interesting to note is that while gross margins looked good, the operating expenses really brought the operational earnings down due to higher Selling and Administrative costs, credit losses (reflecting a $21 million bad debt provision), higher R&D costs and an operating expense of $13.5 million rather than a $35.5 million income and lower equity income. Adjusted EBIT declined from 9.3% to 8% but up from -4.5% in the previous quarter while Adjusted EBITDA declined from 14.2% to 12.2% but still up from 2.2% in the previous quarter. That really brings us to our observation from the previous quarter when I pointed out that the gross margins are quite OK and have room for improvement, but it is mostly the operational expenses that eat away the profits. Revenues and operational expenses Embraer (Embraer) However, in Q2, we saw a significant step-down in operational costs as a percentage of gross profit. We have to see how gross margins develop, but at this stage, they are stronger than what we saw in the past years, and with a strong second half of the year expected we should be seeing a significant step-up in the margins. Until now, it has often looked as if Embraer has costs that are far too high compared to what they generate in revenues, and I am hoping that the jet maker has used the pandemic work in a more cost-conscious way. A positive for Embraer is that it had adjusted free cash flow of $91 million, more than doubling year-over-year and up significantly from a cash outflow of $68 million in the previous quarter. That will help the company reduce its $3.2 billion debt, which has already reduced $864 million year-to-date and interest expenses have been brought down by $28 million. Embraer - Guidance Reaffirmed

Seeking Alpha • Aug 03

Embraer Q2 Earnings Preview

Embraer (NYSE:ERJ) is scheduled to announce Q2 earnings results on Thursday, August 4th, before market open. The consensus EPS Estimate is -$0.07 (-129.2% Y/Y) and the consensus Revenue Estimate is $1.16B (+2.6% Y/Y). Over the last 2 years, ERJ has beaten EPS estimates 38% of the time and has beaten revenue estimates 38% of the time. Over the last 3 months, EPS estimates have seen 1 upward revisions and 1 downward. Revenue estimates have seen 1 upward revisions and 6 downward.

Seeking Alpha • Jul 19

Embraer bags order for 20 more passenger jets from Porter Airlines

Embraer (NYSE:ERJ) has received a firm order for 20 of its E195-E2 passenger jets from Porter Airlines, a regional airline in Toronto, Canada. The deal has a list price value of $1.56B. The first delivery to Porter and entry into service is scheduled in H2 2022. The Embraer E195-E2 has a capacity of 120-146 passengers. Porter will be the North American launch customer for Embraer's new E2 family of jets. With the latest order, Porter's orders with Embraer add up to 100 E195-E2 aircraft, with 50 firm commitments and 50 purchase rights. The airline had placed a firm order for 30 Embraer E195-E2 jets in 2021, with purchase rights for another 50 aircraft, worth US$5.82B at list price including all options. ERJ shares are up +7.03%

Seeking Alpha • Jun 28

Embraer Reintegrates Commercial Airplanes Unit

Embraer faced pressure on results due to commercial aircraft reintegration. ERJ has a promising path ahead, but I would like to see stronger signs of reductions in operating expenses which have eaten away profits for years. A more agile company with increasing commercial volumes and margins is worthy of investment.

Seeking Alpha • Jun 15

Embraer Is Working On An Indian Chapter Like Rival Airbus

Embraer's financials suggest a deep deficit in earnings while its stock trajectory has significantly underperformed in comparison to the S&P 500 in the YTD. Overall, both Boeing and Airbus are widely considered to have the potential to walk away with the lion's share of the market. However, recent news indicates that Embraer is seeking to replicate Airbus' recent endeavours in India which, if done right, will be a critical pivot for the company and stock.

Seeking Alpha • May 21

Embraer Revenue Declines On Shutdown, Eve De-SPACs

Embraer is a pretty interesting company with exposure to the small cabin private jet market. On the other side is a regional commercial aviation business and also defense, with a recent de-SPACing of Eve Holding a new-age mobility company at a high value. A factory shutdown has meant meaningful revenue declines, but backlog growth offsets that for the year-long picture and is just a blip. Markets holding surprisingly strong, and cost saving achieved at the gross margin level. Support and services revenue picking up is a strong signal for mobility, and restores a high margin business. Overall, Embraer is technically undervalued and is watch-listed despite leverage risk.

Seeking Alpha • Mar 10

Embraer Protected Against Disruption Of Titanium Supply

Embraer has little exposure to Russian aircraft market. The Brazilian jet maker sees no immediate concern for titanium supply, a vision we see echoed throughout the industry. Little is known when suspension of Russian titanium imports could be problematic to the ability to produce aircraft.

Seeking Alpha • Dec 21

Embraer: Not A Great Deal Despite Building Momentum In Private Jets

Disappointment on the Millennium is an important development in the Embraer defense story, reflecting the inherent risks in contracting with governments like Brazil. Embraer's focus on the light cabin jet in executive aviation poises it well for growth with exposure to one of the most dynamic categories. Commercial could suffer with Omicron, but small form factors are definitely better than large ones at this point in time, representing an advantage. All things considered, Embraer is not a fantastic deal at this point, and might only work out if momentum in private jet markets builds.

Seeking Alpha • Sep 20

Embraer Better Positioned Than Most For Aviation Transformation

Embraer produces executive jets, military aircraft and regional jets not exceeding 150 seats. While a more pronounced focus on executive jets would have left the company better positioned, regional jets will still fare much better than larger commercial jets. Medium-cabit executive jets in particular will benefit from the boom in private jet chartering, and the HNWI end-customers otherwise remain resilient buyers.

Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

Historical stock prices
Current Share Price	R$67.75
52 Week High	R$80.75
52 Week Low	R$45.20
Beta	0.82
1 Month Change	7.66%
3 Month Change	-4.56%
1 Year Change	36.90%
3 Year Change	393.80%
5 Year Change	478.57%
Change since IPO	258.85%

	EMBJ	US Aerospace & Defense	US Market
7D	8.1%	4.2%	3.2%
1Y	36.9%	37.0%	31.0%

EMBJ volatility
EMBJ Average Weekly Movement	7.7%
Aerospace & Defense Industry Average Movement	8.8%
Market Average Movement	7.1%
10% most volatile stocks in US Market	16.1%
10% least volatile stocks in US Market	3.2%

EMBJ fundamental statistics
Market cap	US$12.01b
Earnings (TTM)	US$396.35m
Revenue (TTM)	US$8.50b

EMBJ income statement (TTM)
Revenue	R$41.88b
Cost of Revenue	R$34.52b
Gross Profit	R$7.36b
Other Expenses	R$5.41b
Earnings	R$1.95b

Earnings per share (EPS)	2.77
Gross Margin	17.57%
Net Profit Margin	4.66%
Debt/Equity Ratio	69.7%

Embraer dividend dates
Ex Dividend Date	May 13 2026
Dividend Pay Date	May 28 2026
Days until Ex dividend	5 days
Days until Dividend pay date	20 days

Data	Last Updated (UTC time)
Company Analysis	2026/05/07 08:58
End of Day Share Price	2026/05/07 00:00
Earnings	2025/12/31
Annual Earnings	2025/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
Ronald Epstein	BofA Global Research
Andre Ferreira	Bradesco S.A. Corretora de Títulos e Valores Mobiliários
Lucas Marquiori	BTG Pactual

Embraer (EMBJ) Stock Overview

Rewards

Risk Analysis

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Price History & Performance

Recent News & Updates

Embraer S.A. to Report Q1, 2026 Results on May 08, 2026

Embraer S.A. Appoints Felipe Santana Santiago De Lima as Executive Vice President, Financial & Investor Relations, Effective April 13, 2026

Embraer: $50 Billion In Contracted And Optioned Backlogs Bodes Well For FY 2026

Embraer S.A. Provides Earnings Guidance for the Year 2026

Embraer S.A. Announces Resignation of João Cox Neto as External Member of the Audit, Risk and Ethics Committee

Embraer S.A. to Report Q4, 2025 Results on Mar 06, 2026

Recent updates

Embraer S.A. to Report Q1, 2026 Results on May 08, 2026

Embraer S.A. Appoints Felipe Santana Santiago De Lima as Executive Vice President, Financial & Investor Relations, Effective April 13, 2026

Embraer: $50 Billion In Contracted And Optioned Backlogs Bodes Well For FY 2026

Embraer S.A. Provides Earnings Guidance for the Year 2026

Embraer S.A. Announces Resignation of João Cox Neto as External Member of the Audit, Risk and Ethics Committee

Embraer S.A. to Report Q4, 2025 Results on Mar 06, 2026

Embraer S.A. (BOVESPA:EMBJ3) entered into a definitive agreement to acquire 50% stake in EZ Air Interior Limited from Safran Cabin Brazil Ltda.

Embraer S.A., Annual General Meeting, Apr 29, 2026

Embraer S.A. Re-Iterates Guidance for the Year 2025

Embraer S.A. Provides Delivery Guidance for the Year 2025

Embraer S.A. Reiterated Earnings Guidance for 2025

Embraer S.A. Provides Operational Guidance for the Year 2025

Embraer S.A. Reiterates Earnings Guidance for the Year 2025

Embraer S.A. to Report Q3, 2025 Results on Nov 04, 2025

Embraer S.A. to Report Q1, 2025 Results on May 06, 2025

Embraer S.A. announces Annual dividend, payable on May 23, 2025

Embraer S.A., Annual General Meeting, Apr 29, 2025

Embraer: A Strategic Acquisition With A Long-Term Focus

Embraer S.A. Provides Earnings Guidance for the Year 2025

Embraer: Largest Order For Executive Jets In History Opens New Opportunity

Embraer S.A. to Report Q4, 2024 Results on Feb 27, 2025

Embraer S.A. Provides Operational Guidance for the Year 2024

Embraer: Not A Buy For Now, But Worth Monitoring

Embraer S.A. to Report Q3, 2024 Results on Nov 08, 2024

Embraer Q2: Strong Demand, Improving Margins And Positive Outlook

Embraer Stock Surges 84%: Updated Buy Rating And New Price Target

Embraer S.A. to Report Q2, 2024 Results on Aug 08, 2024

Embraer: Ready To Fly Even Higher

Embraer S.A. to Report Q1, 2024 Results on May 07, 2024

Embraer S.A., Annual General Meeting, Apr 25, 2024

Embraer: Filling The Boeing Gap?

Embraer S.A. Provides Earnings Guidance for the Year 2024

Embraer Stock: Still A Buy Despite Downgrade And Miss

Embraer S.A. to Report Q4, 2023 Results on Mar 15, 2024

Embraer S.A.(BOVESPA:EMBR3) dropped from Brazil Small Cap Index

Embraer: Getting More Attractive

Embraer Stock Is A Strong Buy

Embraer S.A. Reaffirms Operational and Earnings Guidance for the Year 2023

Embraer S.A. to Report Q3, 2023 Results on Nov 06, 2023

Embraer S.A. Unveils the Phenom 100EX Business Jet

Embraer: An Undervalued Contender Primed For Expansion

Embraer: Growth Potential, But Not So Adequate Financials

Embraer Stock Remains A Strong Buy After Q2 Earnings

Embraer S.A. to Report Q2, 2023 Results on Aug 04, 2023

Embraer: Eyes On The Future

Embraer Stock: Strong Buy After Wins In Asia

Embraer S.A. to Report Q4, 2022 Results on Mar 10, 2023

Embraer: An Earnings Rebound Supports Solid Free Cash Flow And A Bullish Chart Move

Embraer lands firm order for 15 new aircraft for $1.2B

Embraer lands 2 heavy maintenance contracts worth $72M

Embraer Q3 2022 Earnings Preview

Embraer's Stock Is Cheap Despite Transition Risk

Embraer: Significantly Undervalued On An SOTP Basis

Embraer: An Optimistic Small Jet Maker Buy

Embraer Q2 Earnings Preview

Embraer bags order for 20 more passenger jets from Porter Airlines

Embraer Reintegrates Commercial Airplanes Unit

Embraer Is Working On An Indian Chapter Like Rival Airbus

Embraer Revenue Declines On Shutdown, Eve De-SPACs

Embraer Protected Against Disruption Of Titanium Supply

Embraer: Not A Great Deal Despite Building Momentum In Private Jets

Embraer Better Positioned Than Most For Aviation Transformation