Core Insights - Embraer reported a record backlog of US$29.7 billion in Q2 2025, marking the highest level in the company's history [1] Backlog by Segment - Commercial Aviation backlog reached US$13.1 billion, up 31% quarter-over-quarter (qoq) and 16% year-over-year (yoy) [2][5] - Executive Aviation backlog was US$7.4 billion, reflecting a 62% increase yoy but a slight decrease of 2% qoq [9] - Services & Support backlog increased to US$4.9 billion, up 55% yoy and 5% qoq [15] - Defense & Security backlog reached US$4.3 billion, doubling from the previous year and up 3% qoq [10][11] Deliveries - Embraer delivered 61 aircraft in Q2 2025, a 30% increase from 47 jets delivered in Q2 2024 and more than double the 30 aircraft delivered in Q1 2025 [2] - Executive Aviation delivered 38 jets, a 41% increase from 27 jets in Q2 2024 [9] - Commercial Aviation delivered 19 aircraft, consistent with Q2 2024 deliveries [6] Notable Orders - SkyWest placed a firm order for 60 E175 aircraft with rights for 50 additional units [4] - Scandinavian Airlines (SAS) ordered 45 E195-E2 aircraft, marking the largest jet order from a manufacturer in 30 years [4] Performance Metrics - The book-to-bill ratio for Commercial Aviation was 1.8x over the past 12 months [4][5] - The E175 model achieved a milestone of 1,000 units sold since its launch in 2005 [5] Future Outlook - The company anticipates improved production levels in the second half of 2025 and into 2026 [7]

Group 1 - Brazilian aircraft manufacturer Embraer stated that increased tariffs on Brazilian imports by the U.S. would raise the cost of each aircraft purchased by U.S. airlines by $9 million [1] - The CEO of Embraer, Francisco Neto, indicated that price changes could lead to order cancellations, delivery delays, production plan modifications, cash flow declines, and reduced investments [1] - Approximately 60% of Embraer's revenue is dependent on the U.S. market, with 45% of commercial aircraft production and 70% of executive jet production being exported to U.S. customers [1] Group 2 - U.S. airlines may face challenges in acquiring new aircraft due to the lack of alternative manufacturers for regional jets [2] - Flexjet reaffirmed its agreement to purchase 182 aircraft from Embraer for up to $7 billion, with potential additional purchases of 30 aircraft [2] - The aviation industry is urgently responding to the impact of U.S. tariff policies, with rising costs affecting the highly integrated supply chain [2] Group 3 - Brazilian Vice President Alckmin held discussions with industry representatives, including Embraer, to seek an extension of at least 90 days for negotiations with the U.S. [3] - The Brazilian government is prioritizing dialogue and negotiation with the U.S. government to address the tariff issue [3]

Group 1 - The bottleneck in aircraft engines is identified as a significant issue affecting the manufacturing capacity of Embraer S.A. [1] - Rolls-Royce Holdings plc is analyzed in relation to the challenges faced by Embraer S.A. in the aircraft manufacturing sector [1] - The analyst has extensive experience across various industries, including airlines, oil, retail, mining, fintech, and e-commerce, which informs their analysis [1] Group 2 - The analyst has lived through multiple crises, including the dot-com bubble, 9/11, the great recession, and the COVID-19 pandemic, which contributes to a robust understanding of market dynamics [1]

Core Viewpoint - The CEO of Embraer has indicated that proposed tariffs by the U.S. could have a detrimental impact on the company, comparable to the effects of the COVID-19 pandemic [1][2]. Group 1: Impact of Tariffs - Approximately 75% of Embraer's business jets and nearly 50% of its regional airliners are delivered to U.S. clients, making the U.S. market crucial for the company [2]. - The CEO estimates that if the proposed 50% tariff is implemented, it could lead to a revenue decline similar to that experienced during the pandemic [2]. - Shipping Embraer's E175 jets would become "unfeasible" under the proposed tariffs, affecting regional aviation significantly [3]. Group 2: Broader Industry Implications - The CEO described the situation as a "lose-lose" for both Embraer and the U.S., as the U.S. also supplies essential parts like engines and avionics [4][3]. - The aviation industry has already faced challenges due to tariffs, impacting major players like Boeing and Airbus [5]. - The complex global supply chains in the aviation industry make it difficult for companies to absorb such tariffs without significant repercussions [11].

Embraer's stock sunk after its CEO said the aircraft manufacturer could revise its business plan if Trump’s tariffs are implemented. https://t.co/pZgAlFndlb ...

巴西航空工业公司CEO：我们相信巴西和美国能够达成双边协议。关税对收入的影响可能与新冠疫情的 影响类似。 ...

Core Point - The CEO of Embraer stated that the 50% tariff threatened by U.S. President Trump would increase the cost of each aircraft by $9 million [1] Company Summary - Embraer is facing significant cost increases due to potential tariffs imposed by the U.S. government [1] - The specific impact of the tariff is quantified as an additional $9 million per aircraft [1] Industry Summary - The aerospace industry may experience heightened financial pressures if tariffs are implemented, affecting pricing and competitiveness [1]

Core Viewpoint - The CEO of Embraer stated that there have been no order cancellations to date [1] Group 1 - The company is currently experiencing stability in its order book, with no cancellations reported [1]

巴西航空工业公司CEO表示，美国关税可能导致产量计划调整、投资减少及劳动力调整。 ...

Group 1 - The company is assessing the potential impact on its business if tariffs are imposed on Brazilian aerospace [1] - The company is collaborating with relevant authorities to re-establish a zero import tax rate for the aerospace industry [1]