# Embraer (EMBJ.US)

Canonical: https://gigainvestors.com/s/EMBJ

Analysis as of: 2026-10-16T07:28:15.149Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $72.10 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 5

- Operating margin variation: 2.57×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.09×

- FY2018: -0.05×

- FY2019: -0.01×

- FY2020: -0.09×

- FY2021: 0.06×

- FY2022: -0.02×

- FY2023: 0.06×

- FY2024: 0.10×

- FY2025: 0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.0%

- ROIC, second-lowest year: -2.5%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 17.4%

- Recent gross margin (lower of latest and 3-year median): 17.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.4%

- ROIC including acquisitions, ten-year median: 3.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.3%

- FY2017: 9.7%

- FY2018: -2.1%

- FY2019: -2.5%

- FY2020: -5.6%

- FY2021: 3.7%

- FY2022: -2.5%

- FY2023: 8.8%

- FY2024: 12.6%

- FY2025: 17.3%

### economics: na

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 2.3% vs 12.6%

- Per-share earnings: 3.17 to 10.52 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: BRL 42B

- Cumulative retained earnings: BRL -1.1B

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 16.2%

- Per-share value change: BRL 7.36

- Per-share value, starting three-year median: BRL 3.17

- Per-share value, ending three-year median: BRL 10.52

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 0.6%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 16B

- Cumulative net income, 10 years: BRL -529M

- ROIC, first three-year median: 2.3%

- ROIC, last three-year median: 12.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 3.17

- FY2017: BRL 4.75

- FY2018: BRL -3.23

- FY2019: BRL -6.70

- FY2020: BRL -20.68

- FY2021: BRL -1.50

- FY2022: BRL -5.40

- FY2023: BRL 1.10

- FY2024: BRL 11.87

- FY2025: BRL 10.52

### accounting: pass

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 0.68×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.79×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.3%

- FY2017: -4.1%

- FY2018: -10.5%

- FY2019: -11.5%

- FY2020: 5.3%

- FY2021: -1.4%

- FY2022: -9.2%

- FY2024: -4.4%

- FY2025: -4.0%

## Holders

- [John Armitage](https://gigainvestors.com/EC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Howard Marks](https://gigainvestors.com/oc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 417% since Oct 2023 · "Brazil's premier jet manufacturer reported booming earnings and another record backlog." (finance.yahoo.com, Aug 2026) · sales +4.9%

Story as of 2026-10-16T09:58:41.498Z; price observation 2026-10-15.

- 2026-04-09: Embraer Gains From Strong Jet Demand, Expanding Defense Opportunities ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/embraer-gains-strong-jet-demand-152700216.html))

- 2026-06-11: Embraer Gains From Strong Jet Demand, Expanding Defense Opportunities ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/embraer-gains-strong-jet-demand-151100391.html))

- 2026-08-10: Embraer shares jump 6% after Q2 beat and stronger profit outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/embraer-shares-jump-6-q2-141940721.html))

### Sales · FY2024–2025

sales +4.9%; source https://www.sec.gov/Archives/edgar/data/1355444/000162828026021824/erj-20251231.htm; observed 2026-03-30.

- FY2016: BRL 20B 

- FY2017: BRL 19B 

- FY2018: BRL 8.4B 

- FY2019: BRL 21B 

- FY2020: BRL 20B 

- FY2021: BRL 23B 

- FY2022: BRL 24B 

- FY2023: BRL 26B 

- FY2024: BRL 40B 

- FY2025: BRL 42B 

### Gross margin · FY2025

gross margin 17.5%; source https://www.sec.gov/Archives/edgar/data/1355444/000162828026021824/erj-20251231.htm; observed 2026-03-30.

- FY2016: 19.7% 

- FY2017: 5.2% 

- FY2018: 30.6% 

- FY2019: 14.6% 

- FY2020: 12.7% 

- FY2021: 15.6% 

- FY2022: 20.1% 

- FY2023: 17.3% 

- FY2024: 18.0% 

- FY2025: 17.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are BRL 41.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1355444/000162828026021824/erj-20251231.htm (filed 2026-03-30); FY2025: revenue 41501967500; grossProfit 7277289900; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EMBJ.US: Embraer S.A., together with its subsidiaries, engages in the design, development, manufacture, and sale of aircraft and systems worldwide. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets. The Defense & Security segment develops and produces military aircraft; and is involved in research and development of software and integrated information systems, communications, border monitoring and surveillance, space systems/satellites, and aircraft modernization services and services support, as well as command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Aviation segment develops, produces, and sells executive jets. The Service & Support segment provides field and technical support, flight operations solutions, aircraft modification, materials management, maintenance solutions, and training programs. The Other segment engages in the supply of structural parts and hydraulic systems; production of agricultural crop-spraying aircraft; development and certification of eVTOLs; creation of a maintenance and service network, and air traffic control system for eVTOLs; development and manufacture of electrical propulsion systems; cybersecurity; and software and technical products. Additionally, the company is involved in leasing of used aircraft; pilot, mechanic, and crew training; engineering services; retail trade, maintenance, and repair of computer products; information technology consulting, data processing, application service providers, and internet hosting; and fabrication of aircraft interiors. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.

### Why customers stay

Margins ranged from 17.3% to 18% during 2023–25; it earns 3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); FY2023: grossProfit / revenue = 17.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); FY2024: grossProfit / revenue = 18%.

- Source: https://www.sec.gov/Archives/edgar/data/1355444/000162828026021824/erj-20251231.htm (filed 2026-03-30); FY2025: grossProfit / revenue = 17.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); 10-year return on capital observations [[2016,0.022527811069979014],[2017,0.09736740228682914],[2018,-0.020570213021118843],[2019,-0.025452947823277405],[2020,-0.05571849170174252],[2021,0.03687471939949192],[2022,-0.02547077718773649],[2023,0.08750208569449959],[2024,0.1255203283543896],[2025,0.17339146112394663]]; median 0.029701265234735465. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 49.9% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); FY2016: growth capex 0; upkeep 1352262000; owner earnings 506416080. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); FY2017: growth capex 0; upkeep 762836000; owner earnings 1206593457. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); FY2018: growth capex 0; upkeep 565126000; owner earnings 3447632000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); FY2021: growth capex 0; upkeep 268200000; owner earnings 72273000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); FY2024: growth capex 1376558400; upkeep 1506422400; owner earnings 2179860000. Growth capex / owner earnings = 0.6314893617021277.

- Source: https://www.sec.gov/Archives/edgar/data/1355444/000162828026021824/erj-20251231.htm (filed 2026-03-30); FY2025: growth capex 695941083.0796533; upkeep 1954379216.9203467; owner earnings 1394258583.0796533. Growth capex / owner earnings = 0.4991477847261669.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); Incremental return on capital 17.288641520589316, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); Dividend observations: [[2016,99801000],[2017,173043000],[2018,148127648],[2019,7653228],[2020,0],[2021,0],[2022,0],[2024,0],[2025,129257200]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1355444/000162828026021824/erj-20251231.htm (filed 2026-03-30); FY2025: cash repurchases 1023103600 BRL.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); EMBJ.US SharesStats.PercentInsiders = 0.005 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.6 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-30); Closing price 72.1 USD; reporting-to-trading FX 0.19614; FY2025 annual sales per share 226.59181392616406; price multiple 1.622276502112018. FY2025 cash earnings/share 7.6123519065003835. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $21.39 per share

- 2016-11: $19.59 per share

- 2016-12: $19.25 per share

- 2017-01: $22.86 per share

- 2017-02: $23.09 per share

- 2017-03: $22.08 per share

- 2017-04: $19.20 per share

- 2017-05: $19.76 per share

- 2017-06: $18.23 per share

- 2017-07: $20.27 per share

- 2017-08: $22.70 per share

- 2017-09: $22.61 per share

- 2017-10: $19.14 per share

- 2017-11: $19.14 per share

- 2017-12: $23.93 per share

- 2018-01: $25.25 per share

- 2018-02: $26.72 per share

- 2018-03: $26.00 per share

- 2018-04: $25.22 per share

- 2018-05: $24.06 per share

- 2018-06: $24.90 per share

- 2018-07: $20.45 per share

- 2018-08: $19.19 per share

- 2018-09: $19.59 per share

- 2018-10: $22.27 per share

- 2018-11: $22.45 per share

- 2018-12: $22.13 per share

- 2019-01: $21.28 per share

- 2019-02: $20.52 per share

- 2019-03: $19.01 per share

- 2019-04: $20.01 per share

- 2019-05: $19.23 per share

- 2019-06: $20.13 per share

- 2019-07: $20.20 per share

- 2019-08: $17.53 per share

- 2019-09: $17.25 per share

- 2019-10: $17.37 per share

- 2019-11: $17.02 per share

- 2019-12: $19.49 per share

- 2020-01: $16.84 per share

- 2020-02: $15.24 per share

- 2020-03: $7.40 per share

- 2020-04: $6.33 per share

- 2020-05: $5.49 per share

- 2020-06: $5.98 per share

- 2020-07: $5.78 per share

- 2020-08: $5.30 per share

- 2020-09: $4.41 per share

- 2020-10: $4.12 per share

- 2020-11: $5.97 per share

- 2020-12: $6.81 per share

- 2021-01: $6.42 per share

- 2021-02: $8.80 per share

- 2021-03: $10.01 per share

- 2021-04: $11.05 per share

- 2021-05: $13.39 per share

- 2021-06: $15.14 per share

- 2021-07: $14.30 per share

- 2021-08: $17.94 per share

- 2021-09: $17.00 per share

- 2021-10: $15.53 per share

- 2021-11: $13.73 per share

- 2021-12: $17.75 per share

- 2022-01: $15.35 per share

- 2022-02: $13.78 per share

- 2022-03: $12.61 per share

- 2022-04: $11.37 per share

- 2022-05: $10.71 per share

- 2022-06: $8.78 per share

- 2022-07: $9.12 per share

- 2022-08: $10.66 per share

- 2022-09: $8.60 per share

- 2022-10: $10.57 per share

- 2022-11: $10.62 per share

- 2022-12: $10.93 per share

- 2023-01: $12.89 per share

- 2023-02: $12.70 per share

- 2023-03: $16.37 per share

- 2023-04: $15.45 per share

- 2023-05: $14.88 per share

- 2023-06: $15.46 per share

- 2023-07: $15.64 per share

- 2023-08: $15.64 per share

- 2023-09: $13.72 per share

- 2023-10: $13.94 per share

- 2023-11: $17.49 per share

- 2023-12: $18.45 per share

- 2024-01: $18.41 per share

- 2024-02: $19.49 per share

- 2024-03: $26.64 per share

- 2024-04: $25.55 per share

- 2024-05: $27.79 per share

- 2024-06: $25.80 per share

- 2024-07: $31.06 per share

- 2024-08: $33.23 per share

- 2024-09: $35.37 per share

- 2024-10: $33.52 per share

- 2024-11: $38.23 per share

- 2024-12: $36.68 per share

- 2025-01: $40.97 per share

- 2025-02: $47.65 per share

- 2025-03: $46.20 per share

- 2025-04: $45.94 per share

- 2025-05: $45.99 per share

- 2025-06: $56.91 per share

- 2025-07: $57.58 per share

- 2025-08: $56.33 per share

- 2025-09: $60.45 per share

- 2025-10: $64.48 per share

- 2025-11: $62.72 per share

- 2025-12: $64.37 per share

- 2026-01: $73.46 per share

- 2026-02: $72.22 per share

- 2026-03: $59.34 per share

- 2026-04: $62.70 per share

- 2026-05: $57.75 per share

- 2026-06: $63.80 per share

- 2026-07: $68.33 per share

- 2026-08: $71.56 per share

- 2026-09: $75.32 per share

- 2026-10: $72.10 per share

## Annual estimated value (USD per share)

- FY2016: low $15.96 per share, central $16.77 per share, high $17.85 per share

- FY2017: low $19.07 per share, central $21.64 per share, high $23.23 per share

- FY2018: low $13.00 per share, central $13.34 per share, high $13.78 per share

- FY2019: low $12.09 per share, central $14.95 per share, high $16.72 per share

- FY2020: low $21.35 per share, central $23.83 per share, high $25.43 per share

- FY2021: low $15.75 per share, central $15.86 per share, high $16.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1355444/000162828026021824/erj-20251231.htm); period 2025-12-31, filed 2026-03-30.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.