Embraer S.A. (ERJ): Business Model Canvas [Dec-2025 Updated]

You're digging into Embraer S.A.'s engine right now, trying to figure out if that massive backlog translates to real cash flow, and honestly, that's smart; after two decades analyzing aerospace giants, I can tell you their late-2025 setup is fascinating, balancing a record firm order backlog of about $31.3 billion as of Q3 with projected consolidated revenues between $7.0 billion and $7.5 billion for the year. This isn't just about selling E2 jets anymore; it's a complex machine managing the KC-390 defense ramp-up and the big, forward-looking bet on Eve Air Mobility, which defintely changes the risk profile. Let's break down the nine blocks of their Business Model Canvas so you see exactly how they plan to convert that order book into shareholder value below.

Embraer S.A. (ERJ) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Embraer S.A. relies on to keep production lines moving and secure future revenue streams. It's all about strategic alignment, especially in defense and the emerging Urban Air Mobility space.

The overall order book, or backlog, stood at an unprecedented high of $31.3 billion at the end of the third quarter of 2025, providing significant revenue visibility across all segments.

The Defense & Security segment backlog specifically ended Q3 2025 at $3.9 billion, up 8% year-over-year.

Polska Grupa Zbrojeniowa (PGZ) for defense MRO and component manufacturing in Europe

Embraer formalized a significant industrial footprint expansion in Poland in December 2025 by signing five Memoranda of Understanding (MoUs) with Polska Grupa Zbrojeniowa S.A. (PGZ) and its subsidiaries, including WZL-1 and WZL-2.

• The collaboration with WZL-1 focuses on metallic and composite parts manufacturing, technology transfer, and certification.
• The MoU with WZL-2 specifically explores Maintenance, Repair, and Overhaul (MRO) activities for the KC-390 Millennium and other aircraft, plus paint services.
• Poland plans to spend 4.8 per cent of gross domestic product (GDP) on defense in 2026.

Engine and avionics suppliers like Pratt & Whitney and Honeywell

These relationships are foundational for the commercial and executive jet lines, ensuring the supply of critical, certified components.

The Executive Aviation backlog reached $7.3 billion in Q3 2025, up 65% year-over-year, demonstrating strong demand for aircraft relying on these systems.

Eve Air Mobility partners for Urban Air Mobility (UAM) infrastructure and operations

Partnerships in the UAM segment are heavily supported by Brazilian development funding, fueling the digital and physical development of the eVTOL program.

In August 2025, Eve Air Mobility secured total gross proceeds of $230 million in a registered direct offering, which included subscriptions from BNDESPAR.

Earlier in 2025, Eve secured a non-repayable grant from FINEP, Brazil's Funding Authority for Studies and Projects.

Partner/Funding Source	Purpose/Transaction	Amount/Value	Date Reference
FINEP (Brazil)	Grant for sustainable UAM solutions and digital platforms	Up to $15.8 million (Grant portion)	June 2025
FINEP (Brazil)	Total project investment including company contribution	Up to $33.8 million	June 2025
BNDESPAR	Subscription of common stock in capital raise	47,422,680 shares at $4.85 per share	August 2025
BNDES	Second-phase line of credit for prototype manufacturing and testing	$35 million	Late 2024/Early 2025

Global network of Maintenance, Repair, and Overhaul (MRO) service providers

The Services & Support business unit maintained a backlog of $4.9 billion in Q3 2025, up 40% year-over-year, reflecting the importance of this service network.

• A new maintenance contract was signed with CommuteAir for its new facilities at Perot Field Alliance Airport in Fort Worth, Texas, in the Commercial Aviation sub-segment.
• A full-flight simulator deployment in Madrid, Spain, is planned for E2 customers in partnership with CAE.

Strategic defense collaborations with NATO countries like Portugal and Sweden

The KC-390 Millennium platform is central to these partnerships, with existing operators expanding their fleets and facilitating sales to new NATO allies.

Portugal, the launch European customer, added a sixth aircraft to its order, and included 10 purchase options intended for other European countries or NATO members.

Sweden formalized a contract for the purchase of four C-390 Millennium aircraft.

Customer Nation	Aircraft Type	Firm Order Quantity	Contract Value/Reference
Sweden	KC-390 Millennium	4	8 billion Swedish krona (approx. $850 million)
Sweden	KC-390 Millennium	7 (Options)	Included in the $850 million deal
Portugal	KC-390 Millennium	1 (Additional unit)	Total fleet is now 6
Portugal	A-29N Super Tucano	12	Agreed in December 2024/Early 2025
Panama	A-29 Super Tucano	4	Converted options to firm orders in Q3 2025

The C-390 Millennium demonstrated a mission capability rate of 93% and mission completion rates above 99% with current operators.

Embraer S.A. (ERJ) - Canvas Business Model: Key Activities

You're looking at the core engine of Embraer S.A. (ERJ) right now-the actual work that drives that massive order book. It's all about turning metal and ideas into flying assets, and keeping them flying.

Design, manufacturing, and assembly of commercial and executive jets.

The production lines are definitely humming, pushing to meet demand that has pushed the total order backlog to a record $31.3 billion as of the third quarter (3Q25). For the first nine months of 2025 (9M25), Embraer S.A. shipped a total of 148 aircraft across Commercial and Executive Aviation, which is a 16 percent jump year-over-year.

Commercial Aviation, which posted a 9-year record backlog of $15.2 billion in 3Q25, delivered 20 aircraft that quarter. Executive Aviation, meanwhile, closed 3Q25 with a backlog of $7.3 billion, marking a 65 percent increase from the prior year. They hit a major milestone in August 2025, delivering their 2,000th business jet, a Praetor 500.

Here's a quick look at the 9M25 delivery performance against the full-year targets:

Business Unit	9M25 Deliveries	2025 Guidance Midpoint	9M25 % of Midpoint
Commercial Aviation	46 aircraft	81 aircraft (between 77 and 85)	57 percent
Executive Aviation	102 aircraft	150 aircraft (between 145 and 155)	68 percent

Research and Development (R&D) for next-generation aircraft and eVTOL technology.

Innovation is being funded with a long-term view. Embraer S.A. announced plans to invest approximately $3.5 billion by 2030, focusing heavily on sustainable technologies, including the electric vertical take-off and landing (eVTOL) vehicle from its subsidiary, EVE.

The eVTOL development is getting direct financial backing, too. In late 2024, EVE secured an additional US$35 million fund from Brazil's National Development Bank (BNDES) to support its program in 2025. This is in addition to prior funding lines.

Global Maintenance, Repair, and Overhaul (MRO) and logistics support.

The Services & Support division is a significant revenue driver and backlog holder. In 3Q25, this unit sustained a record backlog of $4.9 billion, which is a 40 percent jump year-over-year. For context, Services comprised 25 percent of Embraer S.A.'s total revenue in that same quarter.

The company is actively expanding its physical footprint to support this. Embraer S.A. plans to invest $70 million from 2025-26 in its Fort Worth, Texas facility alone, aiming to boost its North American commercial aviation MRO capacity by 50 percent. This work includes contracts like installing new cabin components for American Airlines' E175 fleet.

Securing and executing large government and defense contracts (e.g., KC-390).

The Defense & Security segment closed 3Q25 with a backlog of $3.9 billion. Execution in the quarter included the delivery of one KC-390 Millennium to the Portuguese Air Force. Portugal also amended its contract in September 2025 to include ten new purchase options, bringing their total commitment to six aircraft.

Key defense activities also involved securing contracts for five A-29 Super Tucano aircraft destined for Panama and U.S.-based Sierra Nevada Corporation. Furthermore, in December 2025, Embraer S.A. signed five Memoranda of Understanding (MoUs) with Poland's Polska Grupa Zbrojeniowa (PGZ) to establish a framework for long-term cooperation on the KC-390.

Supply chain management to mitigate ongoing constraints.

The company's ability to secure a record backlog in 3Q25 happened despite the known industry-wide supply chain disruptions. You can see the production pressure; while 9M25 deliveries were up 16 percent year-over-year, the company is clearly managing a ramp-up pace. Embraer S.A. has stated it expects 'more tangible results from our production leveling initiative in 2026'.

The commercial unit's 2.7x book-to-bill ratio over the past year shows demand far outstrips current output capacity, which is a direct reflection of supply chain constraints.

Finance: review the cash impact of the $70 million MRO investment planned through 2026 by next Tuesday.

Embraer S.A. (ERJ) - Canvas Business Model: Key Resources

You're looking at the core assets that power Embraer S.A.'s operations right now, late in 2025. It's a mix of hard orders, specialized knowledge, and future bets.

The firm order backlog hit an all-time high at the end of the third quarter of 2025, reaching approximately $31.3 billion. This figure represents a 38% increase from the same period in the prior year. Here's how that backlog breaks down across the main divisions as of Q3 2025:

Business Unit	Backlog Amount (as of Q3 2025)	Year-over-Year Change
Commercial Aviation	$15.2 billion	Commercial backlog is the highest in nine years.
Executive Aviation	$7.3 billion	Up 65% year-over-year.
Defence & Security	$3.9 billion	Defense unit backlog up 8% year-over-year.
Services & Support	$4.9 billion	Up 40% year-over-year.

Intellectual Property is definitely a major asset, particularly the proprietary designs for the E2 family of commercial jets and the Praetor line of executive aircraft. This technological edge is supported by continuous investment in research and development. For instance, Embraer held over 1,000 patents as of 2024, underpinning its competitive position.

The human capital, especially the highly skilled aerospace engineering and manufacturing workforce in Brazil, remains central. As of early 2025, Embraer's global workforce stood at 23,500 employees, with 18,000 of those based in Brazil. This reflects a growth of more than 2,500 jobs over the preceding two years, with plans announced to hire an additional 900 employees during the current year.

The global service and support network is a growing revenue pillar. This unit sustained a backlog of $4.9 billion in Q3 2025, marking a 40% increase year-over-year. To give you a sense of scale from the previous year, service revenue reached $1.2 billion in 2024.

For the future, the Eve Air Mobility subsidiary represents a key resource in the electric vertical takeoff and landing (eVTOL) space. As of the Q3 2025 update, Eve maintains approximately 2,800 pre-ordered eVTOLs, including letters of intent, which translates to a potential order book value of roughly $14 billion based on current list prices. The company is targeting entry into service in 2027. For Q3 2025, Eve reported a net loss of $47 million, with cash consumption during that quarter at approximately $60 million.

• The E2 family jets, like the E195-E2, are proving popular for route development.
• The Praetor 500 and Praetor 600 business jets have gained market leadership in their class.
• The C-390 Millennium multi-mission aircraft continues to attract new operators for the Defence & Security segment.
• Eve Holding (EVEX) has a current ratio of 5.21 and a quick ratio of 5.21 as of late 2025, suggesting strong short-term liquidity.
• Embraer plans to invest $3.5 billion by 2030 to support production and technology development, including for Eve.

Embraer S.A. (ERJ) - Canvas Business Model: Value Propositions

The Value Propositions from Embraer S.A. as of late 2025 are grounded in performance metrics and significant order book strength across its divisions.

Fuel-efficient, right-sized regional jets (E2 family) for short-to-medium haul routes.

The E2 family jets deliver substantial operational savings, particularly through efficiency improvements over previous generations and competitors. The E195-E2 consumes 25% less fuel per seat compared to first-generation E-Jets. Further enhancements in the E195-E2, announced in July 2024, improved fuel burn by an additional 2.5%, making it 12.5% more fuel efficient than its closest competitor aircraft. These upgrades also increased the E195-E2 range to 3,000 nmi. For the E190-E2 variant, the fuel burn reduction at entry into service was 24% less per seat than the E195. Embraer is targeting deliveries of 77 to 85 commercial aircraft for the full year 2025.

E2 Variant Metric	Performance Figure	Reference Period/Context
E195-E2 Fuel Burn Reduction (vs. 1st Gen E-Jets)	25% less per seat	General Efficiency Metric
E195-E2 Fuel Burn Improvement (vs. previous E2)	2.5% improvement	As of July 2024 upgrades
E195-E2 Range Increase	From 2,600 nmi to 3,000 nmi	As of July 2024 upgrades
Q2 2025 E195-E2 Deliveries	9 units	Q2 2025
2025 Commercial Delivery Target Range	77 to 85 aircraft	Full Year 2025 Guidance

Multi-mission military transport (KC-390 Millennium) with high operational availability.

The KC-390 Millennium offers jet speed and multi-mission capability, positioning it as a modern tactical airlift solution. The Brazilian Air Force (FAB) fleet, which retired the C-130 Hercules fleet in 2024, has demonstrated high readiness, accumulating over 14,000 flight hours with an availability rate above 99% as of September 2024. The aircraft can carry up to 26 tons of cargo. Portugal confirmed an order for a sixth KC-390 in Q2 2025, and Hungary took delivery of its second unit in November 2025. The Defense & Security division backlog reached $4.3 billion in Q2 2025.

• FAB fleet operational availability rate: above 99%
• Maximum cargo capacity: 26 tons
• FAB KC-390s ordered: 19 units
• Defense & Security Backlog: $4.3 billion (as of Q2 2025)

High-performance, full fly-by-wire executive jets (Praetor 500/600).

The Praetor family is a key driver of Embraer Executive Jets' performance, featuring technology like full fly-by-wire with active turbulence reduction. The division is forecasting deliveries of 145 to 155 business jets for 2025. In the first half of 2025, Embraer delivered 15 Praetor 600s and 11 Praetor 500s. The second quarter alone saw 17 Praetors delivered, comprising 8 Praetor 500s and 9 Praetor 600s. This segment achieved a record second quarter revenue of approximately $550 million in Q2 2025, supporting a backlog of $7.4 billion. Embraer surpassed 2,000 total business jet deliveries as of August 28, 2025, with the milestone aircraft being a Praetor 500.

Comprehensive, long-term aircraft maintenance and support services.

The Services & Support business (ESS) demonstrates consistent growth, having seen revenues climb 12% in 2023 to reach $1.4 billion. The commitment to long-term support is evidenced by the addition of eight new Pool contracts announced in Q2 2025. Furthermore, Embraer is expanding its training infrastructure with new full-flight simulator partnerships in Montreal and Madrid.

Early mover advantage in sustainable, electric urban air mobility (UAM).

Through its subsidiary, Eve Holding, Embraer S.A. maintains a strong position in the emerging UAM sector. Eve Holding has an order pipeline consisting of 2,850 Letters of Intent (LOIs) across 13 countries, valued at approximately $8 billion. Eve's 20-year outlook anticipates opportunities for 30,000 aircraft. A recent agreement with Beta Technologies for electric motors is valued at up to $1 billion.

The company-wide backlog reached an all-time high of $29.7 billion in Q2 2025.

Embraer S.A. (ERJ) - Canvas Business Model: Customer Relationships

You're looking at the core of Embraer S.A.'s long-term value, which is deeply embedded in its customer relationships across commercial, executive, and defense sectors. These aren't just transactional sales; they are multi-year, often decades-long commitments built on fleet support and platform integration. Honestly, the sheer size of the order book tells you how sticky these relationships are.

As of the third quarter of 2025 (3Q25), Embraer S.A. reported a record-high firm order backlog of $\text{USD } \mathbf{31.3 \text{ billion}}$. This massive figure reflects the strength of the long-term contracts underpinning the business.

Business Unit	Backlog Value (3Q 2025)	Backlog Growth YoY	Q2 2025 Revenue
Commercial Aviation	$\text{USD } \mathbf{15.2 \text{ billion}}$	N/A (Nine-year record backlog)	$\text{USD } \mathbf{577 \text{ million}}$
Executive Aviation	$\text{USD } \mathbf{7.3 \text{ billion}}$	$\mathbf{65\%}$	$\text{USD } \mathbf{549 \text{ million}}$
Defense & Security	$\text{USD } \mathbf{3.9 \text{ billion}}$	N/A (Compared to $\text{USD } \mathbf{4.3 \text{ billion}}$ in 2Q25)	$\text{USD } \mathbf{221 \text{ million}}$
Services & Support	$\text{USD } \mathbf{4.9 \text{ billion}}$	$\mathbf{40\%}$	$\text{USD } \mathbf{456 \text{ million}}$

Dedicated, long-term B2B contractual relationships with airlines.

The commercial segment's relationship health is visible in the major firm orders secured through late 2025. These aren't just sales; they lock in future production slots and service revenue. For instance, SkyWest Airlines placed firm orders for $\mathbf{60}$ E175 jets with purchase rights for $\mathbf{50}$ more. Also, Scandinavian Airlines (SAS) ordered $\mathbf{45}$ E195-E2s, including $\mathbf{10}$ additional options. Avelo Airlines signed for $\mathbf{50}$ aircraft with purchase rights for an additional $\mathbf{50}$. The Services & Support division itself is cementing these ties, reporting $\mathbf{8}$ new Pool contracts in Q2 2025 alone.

Direct sales and tailored procurement processes for government and defense clients.

Defense relationships are highly customized, often involving industrial cooperation terms. Lithuania selected the KC-390 Millennium military transport aircraft, with the deal covering industrial cooperation terms for local involvement in maintenance, repair, and overhaul (MRO). Portugal confirmed its sixth KC-390 purchase. Furthermore, contracts were signed for $\mathbf{5}$ A-29 Super Tucano aircraft to Panama and U.S.-based Sierra Nevada Corporation. The company is actively pursuing the Indian air force's Medium Transport Aircraft requirement through a team with Mahindra Defence Systems.

Personalized, high-touch sales and support for high-net-worth executive jet owners.

Executive Aviation continues to show strong customer engagement, delivering $\mathbf{38}$ private jets in Q2 2025, a $\mathbf{41\%}$ increase year-over-year. The division celebrated a major milestone: the delivery of its $\mathbf{2,000th}$ business jet, a Praetor 500, to an undisclosed customer in 3Q25. Executive Aviation segment revenues soared $\mathbf{64\%}$ in Q2 2025 compared to Q2 2024.

Fleet management and integrated logistics support (ILS) for defense platforms.

Embraer S.A. is actively expanding its post-sale support infrastructure globally to assure mission readiness for defense clients. In November 2025, the company signed two Memoranda of Understanding (MoUs) with UAE-based AMMROC and GAL. These agreements specifically target joint opportunities in MRO and training services for the KC-390 Millennium. The scope of collaboration is planned to cover aftermarket support, logistics, training, and repair services.

Customer training and consulting services.

Training is integrated directly into the sales and support cycle, especially for new platforms. The partnership agreements in the UAE explicitly include training services for the KC-390. Also, the Commercial Aviation division is deploying a new full-flight simulator in Madrid, in partnership with CAE, specifically for E2 customers.

Embraer S.A. (ERJ) - Canvas Business Model: Channels

Direct sales force for Commercial and Executive Aviation aircraft.

Embraer S.A. ended the third quarter of 2025 with an all-time high firm order backlog valued at $31.3 billion. The company maintained its full-year 2025 delivery guidance for Commercial Aviation between 77 and 85 aircraft. For Executive Aviation, the 2025 delivery guidance is between 145 and 155 jets.

Division	Backlog Value (Q2 2025)	Q3 2025 Deliveries
Commercial Aviation	$13.1 billion	20 aircraft
Executive Aviation	$7.4 billion	41 aircraft

The Executive Aviation channel expanded its physical sales presence in Europe, appointing Atlas Air Service as an authorized sales representative (ASR) covering sales in Germany, Austria, and Switzerland. The Phenom 300 was reported as the most-delivered light jet.

Global network of authorized service centers and MRO facilities.

The Services & Support division registered a backlog of $4.9 billion as of Q2 2025, marking a 55% increase year-over-year. Revenues for Services & Support climbed 16% year-over-year in Q3 2025. The network expanded maintenance coverage with Gama securing authorized service centre status for the ERJ145 across the UK and UAE, supporting bases in Bournemouth, Farnborough, Luton, and Sharjah.

Direct negotiation with Defense Ministries and government procurement agencies.

The Defense & Security backlog stood at $4.3 billion in Q2 2025. In Q2 2025, the division delivered four A-29 Super Tucano aircraft. Portugal confirmed its sixth KC-390 purchase, and Lithuania became the seventh NATO country to select the KC-390 Millennium aircraft.

Eve Air Mobility platform for future UAM service distribution.

Eve Air Mobility currently holds a backlog of 2,800 electric vertical takeoff and landing (eVTOL) aircraft. The company's Global Market Outlook projects an estimated in-service vehicle fleet of 30,000 eVTOLs by 2045, supporting an estimated three billion passengers and creating a potential revenue of $280 billion. Eve Air Mobility reported a net loss of USD64.7 million in Q2 2025.

• Eve Air Mobility's total liquidity, including undrawn credit lines and a grant, reached $375.5 million at the end of Q2 2025.
• Research & Development expenses for Eve in Q2 2025 were USD45.7 million.
• The agreement with BETA Technologies represents a potential 10-year opportunity worth up to $1 billion for BETA.

Embraer S.A. (ERJ) - Canvas Business Model: Customer Segments

You're looking at the customer base for Embraer S.A. as of late 2025. The company has a diverse set of buyers spanning commercial, defense, private, and specialized agricultural sectors. Honestly, the sheer size of the order book tells you a lot about where the demand is right now.

The firm order backlog hit a record $31.3 billion at the end of the third quarter of 2025, showing strong confidence across the board. Here's a quick look at the segment breakdown as of that time, using the latest available figures:

Business Segment	Order Backlog (as of Q3 2025 or latest available)	H1 2025 Deliveries (Total Aircraft)	2025 Delivery Guidance (Midpoint)
Commercial Aviation	$15.2 billion (Q3 2025)	26 units (1H25)	81 units (Midpoint of 77-85)
Executive Aviation	$7.4 billion (Q2 2025)	61 units (1H25)	150 units (Midpoint of 145-155)
Defense & Security	$4.3 billion (Q2 2025)	4 units (Q2 2025 delivery mentioned)	Not explicitly provided for the segment, but total deliveries expected to be up to 240

The Executive Aviation segment saw its backlog jump 62% year-over-year by Q2 2025. That's serious growth in the private market.

Global regional and mainline commercial airlines (e.g., SkyWest, SAS)

This segment focuses on the E-Jets family, including the E175, E190-E2, and E195-E2. The backlog for Commercial Aviation reached a nine-year record of $15.2 billion in Q3 2025. The E175 model hit a landmark of 1,000 firm orders since its launch in 2005.

Key recent customer activity includes:

• SkyWest (US-based regional airline): Firm order for 60 E175 aircraft, plus purchase rights for 50 more.
• Scandinavian Airlines System (SAS): Agreement to acquire 45 E195-E2 aircraft, with purchase rights for 10 additional units. This was SAS's largest direct order from a manufacturer in the last 30 years.

The division's book-to-bill ratio over the past 12 months reached 1.8x as of Q2 2025.

Defense Ministries and Air Forces globally (e.g., Brazil, Portugal, Poland)

The Defense & Security segment is actively securing major multi-mission transport and training aircraft contracts, particularly for the KC-390 Millennium and the A-29 Super Tucano. The Q2 2025 backlog for this division stood at $4.3 billion, doubling the figure from a year prior.

Customer milestones and activities include:

• Portugal: Signed a deal for a sixth KC-390 Millennium aircraft in September 2025. The KC-390 has demonstrated a mission capability rate of 93% since entering service with the Brazilian Air Force in 2019.
• Brazil: Completed the certification flight test campaign for in-flight refuelling of the Gripen E fighter by the KC-390 Millennium in November 2025.
• Paraguay: Received four A-29 Super Tucano turboprop aircraft deliveries in Q2 2025.
• Poland: Signed five Memoranda of Understanding (MoUs) with the state-owned defense group Polska Grupa Zbrojeniowa (PGZ) in December 2025, setting a framework for long-term collaboration, including potential joint production of the KC-390 Millennium.

High-Net-Worth Individuals (HNWIs) and corporate flight departments

This customer base drives the Executive Aviation segment, which is seeing robust demand for the Phenom and Praetor lines. In the first half of 2025, Embraer S.A. delivered 61 executive jets. The Phenom 300 model retained its position as the world's best-selling light jet for the thirteenth consecutive year, with 20 deliveries in Q3 2025 alone.

The 1H25 deliveries breakdown for this segment was:

• Total Executive Jets: 61.
• Light Jets (Phenom 100/300): 35 total (6 Phenom 100s, 29 Phenom 300s).
• Midsize Jets (Praetor 500/600): 26 total (11 Praetor 500s, 15 Praetor 600s).

Agricultural aviation operators (Ipanema crop duster)

The agricultural division centers on the Ipanema aircraft, which is ethanol-powered and uses biofuel. Embraer S.A. celebrated the delivery of the 1,700th Ipanema cropduster (EMB-203 version) on November 24, 2025. This aircraft holds an approximate 60% market share in Brazil's agricultural aviation sector. The company sold more than 180 units over the last three years.

MRO and logistics customers for in-service fleet support

Support for the in-service fleet is a significant customer base, reflected in the Services & Support backlog, which reached $4.9 billion in Q2 2025, a 55% jump year-over-year. This is clearly tied to the growing global fleet of E-Jets and defense aircraft.

Specifically related to defense customers, the MoUs signed with Poland's PGZ group in December 2025 explicitly include assessing cooperation in operational support, maintenance, repair and overhaul (MRO) services for the KC-390 and other aircraft. Portugal's OGMA is noted as the existing European focal point for KC-390 industrial activity and MRO.

Finance: draft 13-week cash view by Friday.

Embraer S.A. (ERJ) - Canvas Business Model: Cost Structure

The cost structure for Embraer S.A. is heavily weighted toward the direct costs of manufacturing complex aerospace products, coupled with substantial long-term investments in future technologies.

High cost of goods sold (COGS) driven by raw materials and complex component sourcing.

Cost of sales and services for the first nine months of 2025 totaled $(4,039.2) million, against revenues of $4,925.7 million for the same period. This results in a 9M25 Gross Profit of $886.5 million. The Services & Support segment saw its gross margin drop to 24.9% year-over-year in Q3 2025, attributed to service and materials delays. Furthermore, U.S. import tariffs presented a headwind, totaling $17 million in Q3 2025 and reaching $27 million year-to-date.

Significant R&D investment, including for Eve and sustainable aviation.

Research expenses for the nine months ending September 2025 were $43.3 million, with Q3 2025 research expenses specifically at $17.0 million. Looking ahead, Embraer announced plans to invest approximately US$ 3.5 billion by 2030, covering growth and sustainable technologies. In 2024, the company invested $390 million to step up R&D for electric aircraft. For its subsidiary, Eve Air Mobility, a FINEP grant of up to $15.8 million supports a total project investment of up to $33.8 million. On the demonstrator front, Embraer is converting an EMB-203 Ipanema into a hydrogen fuel-cell propulsion demonstrator planned for first flight by 2025.

Labor costs for a highly specialized engineering and manufacturing base.

Embraer maintains a large, specialized workforce globally. The company has 23,500 employees worldwide, with 18,000 of those based in Brazil. This reflects continuous hiring, as Embraer onboarded 1,500 employees in 2024 and planned for an additional 900 hires in 2024 to boost production and R&D.

Working capital buildup to support the record backlog and delivery ramp-up.

The cost of ramping up production against a massive order book ties up significant cash in working capital. Embraer's firm order backlog hit a record $31.3 billion in Q3 2025, marking a 38% increase from the prior year. Despite this, adjusted free cash flow without Eve for Q3 2025 was a positive $300.3 million, aided by lower accounts receivable. The balance sheet reflects this activity, with Working Capital (A-B) at $(48.6) million in Q3 2025.

Operating expenses for a global sales and MRO network.

Operating expenses cover the necessary infrastructure to support global sales and the growing Services & Support division, which recorded revenues of $493 million in Q3 2025.

Here's a look at the key operating expenses for the nine months ending September 2025:

Expense Category	9M25 Amount (in millions of U.S. dollars)	Q3 2025 Amount (in millions of U.S. dollars)
Administrative Expenses	$(153.8)	$(51.9)
Selling Expenses	$(245.5)	$(85.6)
Research Expenses	$(43.3)	$(17.0)

The company's overall financial structure also involves managing debt costs. Embraer extended its debt maturity profile to 5.9 years while maintaining an average cost of debt at 6.2% as of Q3 2025.

Embraer S.A. (ERJ) - Canvas Business Model: Revenue Streams

You're looking at the core ways Embraer S.A. brings in money as we head toward the end of 2025. It's a mix of selling new planes and keeping the existing fleet flying, which is a smart way to balance lumpy aircraft sales with more predictable service income.

The main revenue drivers are clearly laid out in the 2025 guidance. Consolidated revenues are projected to land between $7.0 billion and $7.5 billion for the full fiscal year. This projection is based on hitting specific delivery targets across the major divisions.

Here's the quick math on the expected volume for new aircraft sales:

Segment	Expected 2025 Deliveries (Range)
Commercial Aircraft	77-85 units
Executive Jets	145-155 units

Commercial aircraft sales are a key pillar. Embraer projects delivering between 77 and 85 commercial aircraft in 2025. To give you some context, the company delivered 73 commercial aircraft in 2024.

Executive jet sales show a higher unit volume, which is defintely a strong point for the company's top line. The expectation is for 145 to 155 executive jet deliveries throughout 2025. This segment saw strong performance, with Executive Aviation revenues rising 35% in Q1 2025 and soaring 64% year-on-year in Q2 2025.

Services and Support is the growing segment you need to watch closely. This stream covers Maintenance, Repair, and Overhaul (MRO), parts sales, and training services. It provides a steadier revenue base compared to the cyclical nature of new aircraft sales. In Q2 2025, this segment accounted for about 25% of the total revenue. The segment showed revenue growth of 16% in Q1 2025 and 13% year-over-year in Q2 2025. Management is actively expanding this area, including plans for a 50%+ increase in MRO footprint in North America by 2027.

Defense and Security aircraft sales, featuring the KC-390 multi-mission military transport and the Super Tucano, contribute significantly, especially given the backlog strength. The Defense & Security division saw revenue increases of 40% in 2024, 72% in Q1 2025, and 18% in Q2 2025. As of Q2 2025, the division's order backlog reached $4.3 billion. Deliveries for this segment included one KC-390 Millennium in Q3 2025.

You can see how these streams are expected to combine for the full year:

• Consolidated Revenue Guidance: $7.0 billion to $7.5 billion.
• Commercial Aircraft Deliveries: Midpoint implies a 10% increase over the previous year.
• Executive Aviation Deliveries: Midpoint suggests growth of around 15% compared to last year.
• Services & Support Growth: A focus area, with recent quarterly growth rates like 16% and 13%.
• Defense & Security Backlog: Reached $4.3 billion as of Q2 2025.

Finance: draft 13-week cash view by Friday.