ERJ Overview

Equity Swap Agreement: Embraer S.A. has approved the execution of derivative agreements of "Equity Swap" with Banco Itaú Unibanco S.A. to manage share price fluctuations.

Settlement and Exposure Limits: The agreements will involve cash settlement within 12 months and a maximum exposure of up to 10,932,998 common shares, adhering to regulatory limits.

Financial Terms: The Equity Swap will allow Embraer to receive price variations and dividends from its shares while paying CDI plus a spread during the agreement's term.

Purpose of the Agreement: The primary aim of the Equity Swap is to mitigate share price fluctuations related to future payments under the company's long-term incentive plans.

Share Buyback Program Announcement: EMBRAER S.A. has approved a share buyback program to acquire up to 10.8 million of its own shares, representing approximately 1.5% of its outstanding shares, effective from November 7, 2025, for a duration of 12 months.

Purpose and Financial Details: The buyback aims to hold shares in treasury, cancel them, or sell them later, using available resources from the Company's Investment and Working Capital Reserve, amounting to over R$ 2.5 billion.

Financial Performance: Embraer S.A. reported record third-quarter results for 2025, with revenue rising 18% year-over-year to $2.004 billion, although it fell short of the $2.190 billion estimate. Adjusted earnings per share were 30 cents, exceeding expectations.

Aircraft Deliveries and Backlog: The company delivered 62 aircraft during the quarter, a 5% increase from the previous year, and achieved a record firm order backlog of $31.3 billion, reflecting growth across all business units.

Revenue Growth by Segment: Commercial Aviation revenue surged 31% to $618 million, while Executive Aviation and Defense & Security revenues also saw increases of 4% and 27%, respectively, driven by higher deliveries and contract adjustments.

Outlook and Stock Performance: Embraer reaffirmed its 2025 revenue guidance of $7.0–$7.5 billion, with adjusted EBIT margin expectations of 7.5%–8.3%. However, EMBJ shares fell by 4.16% to $61.98 following the announcement.

Embraer's Cash Tender Offers: Embraer S.A. has announced cash tender offers for its outstanding senior unsecured guaranteed notes due 2028 and 2030, with a total consideration including an early tender payment of $50.00 per $1,000 principal amount.

Details of the Offers: The offers are set to expire on October 21, 2025, and will accept notes up to a maximum purchase price of $1 billion, with priority given to notes tendered before the early tender date.

Surge in Deliveries: Boeing, Embraer, and Airbus reported increased aircraft deliveries in Q3, indicating a recovery in the commercial aerospace sector, with Boeing leading the way with 121 737 deliveries.

Production Stability: The uptick in deliveries is attributed to improved workflow efficiency and production stability, with Boeing's streamlined delivery process and Airbus needing to increase output to meet annual targets.