EMBJ3

Embraer S.A. is a publicly traded Brazilian company in the aerospace and defense sector, headquartered in São José dos Campos (SP), with common shares traded on B3 under the ticker EMBJ3 and American Depositary Receipts listed on the NYSE. Created in 1969 by the Brazilian government to develop and produce aircraft for the Brazilian Air Force, the company went through a capital markets listing process in 1989 and was privatized in 1994, when a special class share (golden share) held by the Federal Government was instituted, granting veto power over sensitive matters, especially those related to military programs. In 2000, it registered with the SEC and carried out its IPO on the New York Stock Exchange. In 2006, it simplified its capital structure, began issuing only common shares, and joined B3’s Novo Mercado, consolidating a dispersed shareholding model with no defined controlling group. In 2010, it changed its corporate name to Embraer S.A. and broadened its corporate purpose to cover not only the aerospace industry, but also equipment, systems, software, and services for defense, security, and energy.

Embraer’s trajectory combines state-owned origins, a focus on defense, and later expansion into civil and international markets. The development of aircraft for the Brazilian Air Force, together with technological partnerships with foreign companies, allowed it to build engineering capabilities that were leveraged into regional commercial aviation and, later, business aviation. The company evolved from a manufacturer largely focused on the Brazilian military market into a global group with a portfolio of commercial aircraft, executive jets, defense and security aircraft, as well as after-sales services and related technological solutions. Throughout the 2010s, it diversified via acquisitions and mergers in defense, security, and technology, such as Atech Negócios em Tecnologias, Bradar, Savis, and Visiona Tecnologia Espacial, in addition to entering the cybersecurity segment with the acquisition of Tempest Serviços de Informática through Embraer Defesa e Segurança Participações.

Embraer’s business model is structured into five operating segments: Commercial Aviation, Executive Aviation, Defense & Security, Services & Support, and Other Segments, which include agricultural aviation and the manufacture of systems and components. The company designs, develops, manufactures, and markets aircraft and systems, and also provides technical support, maintenance, spare parts, and engineering services. In 2024, net revenue reached R$ 35.4 billion, with approximately 34.9% coming from Commercial Aviation, 27.7% from Executive Aviation, 11.3% from Defense & Security, 25.1% from Services & Support, and 1.0% from Other Segments. This revenue diversification reflects the growing importance of support and maintenance for fleets already delivered, which adds to the traditional business of new aircraft sales. The firm order backlog totaled US$ 26.3 billion at the end of 2024, indicating a significant base of long-term contracts with airlines, business jet operators, and government customers.

In Commercial Aviation, Embraer has consolidated itself as one of the leading global manufacturers of regional jets, focusing on the segment of up to 150 seats. The ERJ family, launched in the 1990s, was its first leap into commercial jets, followed by the EMBRAER 170/190 jet family, certified from 2004, which became a pillar of its presence in the regional market, especially in North America. With a high degree of commonality of components among the 170, 175, 190, and 195 models, the company sought to optimize development costs and offer operating cost savings for operators. In 2013, it launched the new-generation E-Jets E2, with the E175-E2, E190-E2, and E195-E2 models, equipped with Pratt & Whitney GTF engines and design updates aimed at fuel efficiency and cost reduction. The E190-E2 and E195-E2 entered into service in 2018 and 2019, respectively, with certifications obtained simultaneously from ANAC, the FAA, and EASA. From 2022 to 2024, the E175 family continued to receive significant orders from carriers such as Alaska Air Group, American Airlines, Air Peace, and SkyWest, reinforcing Embraer’s positioning in both mature and expanding regional markets.

In Executive Aviation, Embraer has developed a broad portfolio of business jets, covering from the entry-level category to medium and super-midsize segments. The lineup includes series such as the Phenom 100 and Phenom 300, aimed at the high-net-worth market, corporate operators, charter providers, and fractional ownership programs, and the Praetor 500 and Praetor 600 models, launched in 2018, positioned in the midsize and super-midsize categories. The company has gradually adjusted its portfolio, discontinuing aircraft such as the Legacy 600, Legacy 650, and Lineage 1000E and later the Legacy 450 and 500, concentrating efforts on the Phenom and Praetor families. In 2023, it launched the Phenom 100EX, an evolution of the Phenom 100 series, which entered service in early 2024. Production of executive jets takes place mainly at the Melbourne, Florida facilities, which host a final assembly line, service center, and engineering center, and in Gavião Peixoto (SP), where the Praetor 500 and 600 are assembled.

The Defense & Security segment brings together military aircraft programs, systems, and technological solutions for governments and armed forces. The Gavião Peixoto unit houses the assembly and flight test lines for defense aircraft, including the KC-390 Millennium multi-mission transport and aerial refueling aircraft, which received its type certification from ANAC in 2018 and had its first delivery in 2019. Embraer also maintains a final assembly line in Jacksonville, Florida, dedicated to the A-29 Super Tucano for the U.S. Air Force’s LAS program and potential other customers. In systems, the company operates through subsidiaries such as Atech, which develops air traffic control and management solutions, defense systems, simulators, and logistics, and Visiona, integrator of the Brazilian government’s Geostationary Defense and Strategic Communications Satellite System (SGDC). The acquisition of Tempest added cybersecurity capabilities to the digital defense and security portfolio.

The Services & Support area is a central component of the strategy to capture recurring revenue over the aircraft lifecycle. Embraer operates service, maintenance, and parts distribution centers in the Americas, Europe, Africa, the Middle East, and Asia, with emphasis on the Customer Care Center at the Ozires Silva Unit in São José dos Campos, which coordinates global technical support. Subsidiaries such as Embraer Executive Jet Services, Embraer Aircraft Customer Services, and Embraer Aircraft Maintenance Services, located mainly in the United States, offer maintenance, repair, overhaul, parts sales, training, and after-sales support for commercial and executive fleets. Embraer CAE Training Services provides pilot, mechanic, and crew training services, reinforcing the company’s role as an integrated provider of aviation solutions.

Embraer’s geographic footprint is characterized by a high degree of internationalization of both its customer base and operating structure. In 2024, 59.5% of net revenue originated from customers in North America, 22.5% in Europe, 8.2% in Brazil, 4.0% in Latin America (excluding Brazil), 3.9% in Asia-Pacific, and 1.9% in other markets. In addition to its facilities in Brazil, the company maintains industrial units, offices, and engineering and service centers in countries such as the United States, France, and the Netherlands, through subsidiaries like Embraer Aircraft Holding, Embraer Aviation International, and Visiona International. The equipment division, after the merger of ELEB Equipamentos in 2024, concentrates production of landing gear systems, structural components, hydraulic systems, and electromechanical subassemblies in São José dos Campos, complementing its activity in complete aircraft. In Botucatu (SP), Embraer manufactures the Ipanema agricultural aircraft, serving the agricultural aviation segment.

From an operational standpoint, Embraer’s production process involves manufacturing primary parts, assembling large components, and final assembly, with a strong emphasis on quality, productivity, and preventive maintenance indicators. The company applies Total Productive Maintenance practices, monitors quality costs, and seeks to reduce non–value-added activities. In 2022, it signed an agreement with Toyota do Brasil to implement the principles of the Toyota Production System at the Ozires Silva unit, resulting in efficiency gains in wing assembly processes, and decided to expand the project in 2023. The company maintains broad insurance coverage for industrial plants, fleet, and product liability for aircraft, in addition to policies for natural disasters and business interruption, in line with the risks of an asset-intensive industrial operation and large international contracts.

Embraer also participates in innovation initiatives and new air mobility markets. In 2021, it structured Eve UAM, focused on urban air mobility solutions, including the development of electric vertical take-off and landing (eVTOL) aircraft, support services, fleet management, and urban air traffic systems. The business combination with Zanite Acquisition Corp. led to the creation of Eve Holding, listed on the NYSE in 2022, in which Embraer, through Embraer Aircraft Holding, holds a controlling stake. In 2023, the company signed an agreement with Nidec Motor Corporation to form Nidec Aerospace, aimed at the joint development and manufacture of electric propulsion systems for aeronautical use, covering eVTOLs and fixed-wing aircraft. These moves indicate its pursuit of participation in emerging aviation segments, alongside the core business of regional jets, executive jets, and defense aircraft, which remains the economic core of Embraer EMBJ3 as a company listed on B3.