Embraer Services Shrugs Off Tariff Impact

Embraer and Airnorth contract signing

Embraer signed a multi-year support deal with Airnorth at the Singapore Airshow in February.

Credit: Embraer

Strong demand from commercial aviation and defense customers helped boost Embraer’s services and support sales by 25% in the final quarter of 2025.

Services revenues totaled $552 million in the three months to Dec. 31, with strong materials pricing increasing the OEM’s adjusted pre-tax profit margin to 21.4%, which it said had “more than offset the negative impact of U.S. tariffs [$3 million; 0.54%] during the period.”

For comparison, Embraer’s revenues from commercial aircraft production were $974 million in the final quarter, following a surge in output that saw it deliver 32 aircraft out of a total of 78 for the year. Embraer expects to deliver 80-85 commercial aircraft in 2026.

Meanwhile, its services and support backlog grew by 7% to $4.9 billion in the final quarter of 2025, and the Brazilian manufacturer has sustained that momentum into the new year.

In February, the OEM announced a new predictive maintenance deal with Virgin Australia, under which it will equip the carrier’s Embraer E2 aircraft with the AHEAD (Aircraft Health Analysis and Diagnosis) system. Virgin Australia has eight firm orders for E2 jets and has already taken delivery of two aircraft.

Embraer also signed a multi-year support deal with another Australian operator, Airnorth. The agreement provides comprehensive maintenance, repair and spare parts support for Airnorth’s E170 and E190 fleet under Embraer’s pool program.

Spare parts provisioning continues to be a strong driver of services revenue for the company, underpinned by Embraer's $36 million and $42 million investments in its pooling programs in 2024 and 2025, respectively.

Embraer is also investing in MRO. During the final quarter of 2025, it started construction of a new $70 million MRO facility for commercial jets in Fort Worth, Texas. The hangar, expected to open in 2027, will increase service capacity for E‑Jets in the U.S. by more than 50%.

Alex Derber

Alex Derber, a UK-based aviation journalist, is editor of the Engine Yearbook and a contributor to Aviation Week and Inside MRO.