Operating margins remain highly unstable, fluctuating from a 16.9% peak in 2024Q3 to 5.1% in 2026Q1, reflecting the inherent risks of lumpy aircraft delivery cycles.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 |
|---|
| Sales/Revenue | 7.95B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 1.4B | 1.33B | 1.15B | 909.6M | 912.2M | 655.85M | 477.6M | 795.5M | 768M | 985.3M | 3.99B | 4.37B | 3.13B | 3.02B | 2.78B | 2.38B | 1.71B | 1.86B | 2.65B | 2.41B | 2.06B | 2.45B | 3.13B | 2.55B | 2.54B | 2.19B | 1.66B | 1.04B |
| Gross Margin % | 17.66% | 17.53% | 18.03% | 17.26% | 20.09% | 15.61% | 12.66% | 14.56% | 15.14% | 11.7% | 19.7% | 18.75% | 19.88% | 22.71% | 24.17% | 22.5% | 19.13% | 19.45% | 21.21% | 21.96% | 25.34% | 27.72% | 34.1% | 37.72% | 39.36% | 38.51% | 31.19% | 31.42% |
| Gross Profit Growth % | - | 15.23% | 26.77% | -0.29% | 39.09% | 37.32% | -39.96% | 3.58% | -22.05% | -75.29% | -8.86% | 39.86% | 3.63% | 8.42% | 16.8% | 39.09% | -8.04% | -29.64% | 10.1% | 16.75% | -15.95% | -21.7% | 22.61% | 0.57% | 15.92% | 32.07% | 58.97% | - |
| Operating Expenses | 736.77M | 720.2M | 485.6M | 595.1M | 1.02B | 458.3M | 801M | 872.5M | 768M | 985.3M | 3.99B | 4.37B | 3.13B | 3.02B | 2.78B | 2.38B | 1.71B | 1.86B | 2.65B | 2.41B | 2.06B | 2.45B | 3.13B | 2.55B | 2.54B | 2.19B | 1.66B | 1.04B |
| OpEx % of Revenue | - | 9.5% | 7.59% | 11.3% | 22.52% | 10.91% | 21.24% | 15.97% | 15.14% | 11.7% | 19.7% | 18.75% | 19.88% | 22.71% | 24.17% | 22.5% | 19.13% | 19.45% | 21.21% | 21.96% | 25.34% | 27.72% | 34.1% | 37.72% | 39.36% | 38.51% | 31.19% | 31.42% |
| Selling, General & Admin | 576.43M | 552.1M | 508.6M | 519.6M | 459.3M | 379.6M | 337.4M | 476.7M | 488.3M | 1.02B | 1.69B | 2.14B | 1.57B | 1.42B | 1.42B | 1.24B | 954.57M | 863.98M | 1.23B | 1.28B | 990.84M | 872.4M | 1.45B | 1.08B | 935.88M | 704.41M | 636.35M | 343.93M |
| SG&A % of Revenue | - | 7.29% | 7.95% | 9.86% | 10.12% | 9.04% | 8.95% | 8.73% | 9.63% | 12.13% | 8.34% | 9.17% | 9.98% | 10.66% | 12.32% | 11.74% | 10.66% | 9.02% | 9.87% | 11.67% | 12.19% | 9.87% | 15.8% | 15.93% | 14.51% | 12.39% | 11.97% | 10.36% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 667.62M | 608.5M | 667.5M | 314.5M | -110.5M | 201.3M | -323.4M | -77M | 92.3M | -493.47M | 1.19B | 1.42B | 1.2B | 1.14B | 1.09B | 466.1M | 614.89M | 661.01M | 1.06B | 781.53M | 741.36M | 1.19B | 1.45B | 836.46M | 1.2B | 1.27B | 889.62M | 665.1M |
| Operating Margin % | 8.4% | 8.03% | 10.44% | 5.97% | -2.43% | 4.79% | -8.58% | -1.41% | 1.82% | -5.86% | 5.86% | 6.1% | 7.62% | 8.61% | 9.45% | 4.4% | 6.86% | 6.9% | 8.48% | 7.13% | 9.12% | 13.47% | 15.81% | 12.35% | 18.59% | 22.25% | 16.73% | 20.03% |
| Operating Income Growth % | - | -8.84% | 112.24% | 384.62% | -154.89% | 162.24% | -320% | -183.42% | 118.7% | -141.58% | -16.67% | 18.89% | 4.68% | 5.11% | 133.56% | -24.2% | -6.98% | -37.55% | 35.44% | 5.42% | -37.73% | -17.98% | 73.55% | -30.26% | -5.24% | 42.27% | 33.76% | - |
| EBITDA | 902.47M | 868M | 911.1M | 556.2M | 99.8M | 410.03M | -31.3M | 132.7M | 365.8M | 954.87M | 2.46B | 3.27B | 2.44B | 2.25B | 1.9B | 1.1B | 1.22B | 1.21B | 1.25B | 904.33M | 879.45M | 1.33B | 1.61B | 1.02B | 1.34B | 1.36B | 948.52M | 710.43M |
| EBITDA Margin % | 11.35% | 11.46% | 14.25% | 10.56% | 2.2% | 9.76% | -0.83% | 2.43% | 7.21% | 11.34% | 12.13% | 14% | 15.51% | 16.94% | 16.49% | 10.38% | 13.59% | 12.6% | 9.99% | 8.26% | 10.82% | 15.09% | 17.55% | 15.1% | 20.79% | 23.84% | 17.84% | 21.39% |
| EBITDA Growth % | -7.11% | -4.73% | 63.81% | 457.31% | -75.66% | 1409.99% | -123.59% | -63.72% | -61.69% | -61.11% | -24.84% | 33.93% | 8.37% | 18.55% | 72.69% | -9.68% | 0.91% | -3.27% | 37.93% | 2.83% | -34.08% | -17.19% | 57.56% | -23.78% | -1.07% | 42.94% | 33.51% | - |
| D&A (Non-Cash Add-back) | 234.85M | 259.5M | 243.6M | 241.7M | 210.3M | 208.73M | 292.1M | 209.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 367.49M | 464.6M | 769.5M | 356.5M | 18.1M | 271.3M | -415.4M | 22.1M | 365.8M | 954.87M | 2.46B | 3.27B | 2.44B | 2.25B | 1.9B | 1.1B | 1.22B | 1.21B | 1.25B | 904.33M | 879.45M | 1.33B | 1.61B | 1.02B | 1.34B | 1.36B | 948.52M | 710.43M |
| Net Interest Income | -160.23M | -77.3M | -127.14M | -121.34M | -187.92M | -227.08M | -211.12M | -106.01M | -230M | -135.94M | -664.31M | -696.69M | -462.95M | -347.82M | -231.77M | -209.45M | -169.84M | -248.1M | -246.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 69.61M | 119.7M | 98.31M | 119.34M | 48.13M | 29.21M | 28.17M | 121.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 229.84M | 197M | 225.45M | 240.68M | 236.05M | 256.29M | 239.29M | 227.57M | 230M | 135.94M | 664.31M | 696.69M | 462.95M | 347.82M | 231.77M | 209.45M | 169.84M | 248.1M | 246.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 331.32M | 267.6M | 557M | 120.7M | -205.8M | 27.4M | -635.2M | -186.2M | -136.2M | -314.54M | 589.26M | 1.32B | 1.26B | 1.28B | 1.15B | 453.3M | 681.53M | 558.91M | 861.96M | 1.04B | 960.49M | 1.17B | 1.32B | 341.99M | 1.05B | 1.05B | 843.36M | 549.77M |
| Pretax Margin % | 4.17% | 3.53% | 8.71% | 2.29% | -4.53% | 0.65% | -16.84% | -3.41% | -2.69% | -3.73% | 2.91% | 5.67% | 8.01% | 9.66% | 9.95% | 4.28% | 7.61% | 5.84% | 6.9% | 9.53% | 11.81% | 13.19% | 14.35% | 5.05% | 16.28% | 18.5% | 15.86% | 16.55% |
| Income Tax | 15.1M | -91.4M | 202.4M | -43.6M | -2.3M | 70.9M | 93.1M | 130.3M | 35M | 93.27M | 978.84K | 1.01B | 390.67M | 546.45M | 495.3M | 233.05M | 104.71M | -275.45M | 81.01M | 5.73M | 96.04M | 96.99M | 299.26M | -88.41M | 481.47M | 424.34M | 225.95M | 125.84M |
| Effective Tax Rate % | 4.56% | -34.16% | 36.34% | -36.12% | 1.12% | 258.76% | -14.66% | -69.98% | -25.7% | -29.65% | 0.17% | 75.97% | 31% | 42.56% | 43.21% | 51.41% | 15.36% | -49.28% | 9.4% | 0.55% | 10% | 8.31% | 22.72% | -25.85% | 45.85% | 40.34% | 26.79% | 22.89% |
| Net Income | 311.79M | 351.9M | 352.5M | 164M | -185.4M | -44.7M | -731.9M | -322.3M | -178.2M | 873.17M | 582.74M | 272.38M | 837.12M | 728.88M | 649.57M | 204.15M | 551.43M | 810.49M | 766.16M | 1.02B | 843.66M | 1.04B | 1.01B | 429.72M | 568.54M | 638.16M | 617.4M | 423.93M |
| Net Margin % | 3.92% | 4.64% | 5.51% | 3.11% | -4.08% | -1.06% | -19.41% | -5.9% | -3.51% | 10.37% | 2.88% | 1.17% | 5.32% | 5.49% | 5.64% | 1.93% | 6.16% | 8.46% | 6.14% | 9.33% | 10.38% | 11.76% | 11.05% | 6.35% | 8.81% | 11.22% | 11.61% | 12.77% |
| Net Income Growth % | -21.5% | -0.17% | 114.94% | 188.46% | -314.77% | 93.89% | -127.09% | -80.86% | -120.41% | 49.84% | 113.94% | -67.46% | 14.85% | 12.21% | 218.18% | -62.98% | -31.96% | 5.79% | -25.03% | 21.13% | -18.88% | 2.5% | 136.11% | -24.42% | -10.91% | 3.36% | 45.64% | - |
| Net Income (Continuing) | 316.23M | 359M | 354.6M | 164.3M | -203.5M | -43.5M | -728.3M | -316.5M | -171.2M | -407.81M | 588.28M | 318.04M | 869.63M | 737.41M | 651.06M | 220.25M | 576.82M | 834.36M | 780.94M | 1.02B | 843.66M | 1.04B | 1.01B | 429.72M | 568.54M | 627.59M | 617.4M | 423.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -111.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 370.54M | 367.3M | 269.62M | 252.8M | 256.8M | 107.1M | 112.6M | 96.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.73 | 1.92 | 1.92 | 0.88 | -1.00 | -0.24 | -3.96 | -1.76 | -0.96 | 4.76 | 3.13 | 1.48 | 4.52 | 4.00 | 3.59 | 1.10 | 3.07 | 4.48 | 4.24 | 5.52 | 4.60 | 5.68 | 5.64 | 2.40 | 3.27 | 6.68 | 6.92 | 3.48 |
| EPS Growth % | -21.66% | 0% | 118.18% | 188% | -316.67% | 93.94% | -125% | -83.33% | -120.17% | 52.08% | 111.49% | -67.26% | 13% | 11.42% | 226.36% | -64.17% | -31.47% | 5.66% | -23.19% | 20% | -19.01% | 0.71% | 135% | -26.61% | -51.05% | -3.47% | 98.85% | - |
| EPS (Basic) | - | 1.92 | 1.92 | 0.88 | -1.00 | -0.24 | -3.96 | -1.76 | -0.96 | 4.76 | 3.13 | 1.49 | 4.60 | 4.00 | 3.59 | 1.10 | 3.07 | 4.48 | 4.24 | 5.52 | 4.60 | 5.80 | 5.64 | 2.40 | 3.27 | 4.00 | 4.84 | 3.48 |
| Diluted Shares Outstanding | 179.93M | 183.28M | 183.66M | 183.66M | 183.66M | 183.68M | 184.04M | 183.96M | 183.7M | 183.7M | 184.32M | 183.39M | 184.37M | 183.45M | 181.93M | 181.21M | 181M | 180.93M | 181.52M | 185.26M | 185.73M | 181.32M | 180.44M | 179.34M | 175.49M | 95.84M | 88.65M | 122.39M |
| Basic Shares Outstanding | 179.93M | 183.28M | 183.66M | 183.66M | 183.66M | 183.68M | 184.04M | 183.96M | 183.52M | 183.57M | 183.89M | 182.55M | 183.42M | 182.25M | 181.26M | 180.92M | 180.92M | 180.93M | 181.52M | 185.04M | 184.98M | 180.46M | 179.38M | 178.44M | 174.24M | 159.26M | 128.08M | 122.39M |
| Dividend Payout Ratio | - | 6.71% | - | 8.17% | - | - | - | - | - | 19.82% | 17.13% | 66.95% | 29.67% | 20.88% | 17.11% | 164.34% | 48.94% | - | - | - | - | - | - | - | - | - | - | - |
Supply chain delivery bottlenecks
According to the provided financial data, Embraer's gross margin has fluctuated within a narrow band, peaking at 19.4% in 2025Q2 before retreating to 18.0% in 2026Q1, suggesting that the company faces ongoing challenges in achieving consistent profitability expansion across its diverse commercial and defense aircraft portfolios.
The inability to sustain gross margins above the 20% threshold indicates that the company remains highly sensitive to the mix of aircraft deliveries and potential cost overruns in the E2 program. Investors should monitor whether the maturation of newer platforms can eventually decouple margin performance from the current reliance on high-volume, lower-margin commercial deliveries.
As reported in recent quarterly filings, Embraer's operating income has demonstrated significant instability, swinging from a loss of $3.9 million in 2024Q1 to a peak of $285.2 million in 2024Q3, reflecting the lumpy nature of revenue recognition inherent in the aerospace manufacturing and defense project cycles.
The wide variance in operating margins suggests that the company struggles to maintain consistent overhead efficiency when delivery milestones are delayed or shifted between quarters. This volatility implies that operating leverage is currently more a function of delivery timing than structural cost discipline, warranting caution regarding future earnings predictability.
Based on the income statement history, net income has shown extreme variability, with EPS dropping from $1.04 in 2023Q4 to $0.18 in 2026Q1, a trend that appears heavily influenced by non-operating items and the complex accounting treatment of long-term defense contracts and foreign exchange fluctuations.
The lack of consistent EPS growth despite revenue scale suggests that bottom-line results are frequently impacted by non-recurring items or accounting adjustments rather than core operational improvements. Analysts should scrutinize the gap between reported net income and cash generation to determine if the current earnings profile accurately reflects the underlying health of the business.
Data from the last ten quarters indicates that Embraer's revenue and profitability are susceptible to sharp quarterly contractions, such as the 55% year-over-year decline in EPS reported in 2026Q1, which highlights the inherent risks of a business model dependent on lumpy, high-value capital equipment deliveries.
Short-term observers may point to the persistent supply chain constraints and the potential for 'glider' deliveries as evidence that the company's growth narrative is vulnerable to external shocks. The reliance on specific engine suppliers creates a bottleneck that may continue to pressure margins and delay revenue recognition, regardless of the strength of the firm order backlog.
Quick answers to the most common questions about buying EMBJ stock.
Embraer S.A. (EMBJ) is profitable, generating $351.9M in net income for the fiscal year ending 2025 with a net profit margin of 4.6%.
Embraer S.A. (EMBJ) reported an operating income of $608.5M, resulting in an operating profit margin of 8.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Embraer S.A. (EMBJ) generated $1.33B in gross profit for the year, representing a gross profit margin of 17.5%. This demonstrates the company's core pricing power and production efficiency.