Brazilian aerospace company Embraer has delivered a powerful performance, fueled by impressive quarterly results and a series of strategic expansions. A record-breaking order backlog and a newly announced share repurchase plan are energizing investors, though questions remain about the long-term sustainability of this upward trajectory.
Strategic Expansion Gains Global Momentum
Embraer is aggressively advancing its international footprint through several key initiatives that underscore its global strategy:
- Strengthening African Ties: The partnership with Airlink was expanded on November 16, with the Component Pool Program now supporting 78 aircraft.
- Pushing into China: A new market report has been published, outlining pathways for Chinese airlines to achieve sustainable profitability.
- Military Modernization: The A-29 Super Tucano is being upgraded with counter-drone capabilities, providing a cost-effective enhancement for existing operators.
- Deepening Indian Presence: A new office opened in Delhi in October, reinforcing the company’s commitment to the burgeoning Indian market.
Quarterly Earnings Exceed Expectations
The company’s financial results for the third quarter of 2025 surpassed all forecasts. Consolidated revenue advanced by 18% to $2.004 billion. Even more striking were the gains in its business segments: Commercial Aviation revenue grew by 31%, while Defense & Security saw a 27% increase.
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Operational performance was equally robust. The adjusted EBIT margin reached 8.6%, translating to $172 million. Adjusted net income stood at $54.4 million. A standout achievement was the company’s order backlog, which climbed to a historic high of $31.3 billion.
Shareholder Returns Enhanced by Buyback
In a direct benefit to shareholders, Embraer’s board of directors approved a substantial share repurchase program on November 7. The authorization allows for the buyback of up to 10.8 million common shares, representing approximately 1.5% of the outstanding stock, over the next twelve months. These repurchased shares are intended to be held in treasury, cancelled, or used for employee share-based compensation plans.
The critical question for investors is whether Embraer can maintain this momentum. While the record order book provides significant visibility, the aerospace sector remains intensely competitive. The coming quarters will reveal if the company’s strategic push into emerging markets yields the anticipated returns.
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