Embraer S.A. Q2 FY2025 earnings call

• Embraer delivered highest second quarter revenue in history at $1.8 billion, adjusted EBIT margin 10.5%. Backlog reached new all-time high of $29.7 billion. - Commercial Aviation: SAS ordered 45 E195-E2s with 10 options, SkyWest purchased 60 E175s with 50 options. - Executive Aviation: Record second quarter revenue circa $550 million, backlog $7.4 billion. - Defense & Security: Portugal confirmed 6th KC-390 purchase with 10 options, Lithuania selected KC-390. - Service & Support: Signed 8 New Pool contracts, expanded MRO capabilities. - Focus on production-leveling initiative to improve efficiency and cash flow.

Commercial Aviation: Delivered 19 aircraft, backlog $13.1 billion with a 1.8:1 book-to-bill over 12 months. Executive Aviation: Delivered 38 jets, record second quarter revenue circa $550 million, backlog $7.4 billion with a 2.4:1 book-to-bill over 12 months. Defense & Security: Backlog $4.3 billion, trailing 3.6:1 book-to-bill in last 12 months. Service & Support: Backlog $4.9 billion, 2:1 book-to-bill over last 12 months. Revenue breakdown: Commercial and Executive Aviation responsible for over 60% of revenue, Service & Support 25%, Defense & Security 12%.

• Expect revenues between $7 billion to $7.5 billion, adjusted EBIT margin 7.5% to 8.3%, and more than $200 million in adjusted free cash flow. - Operational delivery guidance: Commercial Aviation 77-85 aircraft, Executive Aviation 145-155 jets. - Backlog at $29.7 billion all-time high.

• U.S. tariffs continue to be a major concern, with impact already considered in forecasts. - Inflationary pressures, foreign exchange rate volatility pose challenges for the second half.

Q: Regarding the outlook for the second half, how big could the challenge be?

A: Antonio Carlos Garcia said 20% of tariff impact year-to-date, remaining 80% to be felt in Q3-Q4, guidance remains safe but waiting more months to revise.

Q: How are conversations with U.S. customers regarding E175 tariffs?

A: Francisco Gomes Neto said focus is on restoring 0 tariff, final tariff for E175 customers is lower than 10% due to U.S. content, working with customers to deliver aircraft but no new big orders expected this year.

Q: Update on Eve's maiden flight?

A: Francisco Gomes Neto said Eve's first flight planned for December 2025.

Q: Progress on KC-390 production in Poland?

A: Francisco Gomes Neto said working with Poland, plans to increase KC-390 production, but Poland's decision to go to competition changed some plans.