Q2 2025 Embraer SA Earnings Call

Good morning, ladies and gentlemen, and thanks for standing by.

As a reminder, this conference is being recorded its broadcast is intended exclusively for the participants of these events and may not be reproduced or retransmitted without the express authorization of Embraer.

This conference call will be conducted in English, but please let me say a short announcements for Portuguese speakers.

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My name is and keep either and I'm the head of Investor Relations and M&A framework, there I want to welcome you to our second quarter earnings Conference call.

The numbers in this presentation contains non-GAAP financial information to help investors reconcile <unk> financial information in GAAP standards to Embraer I F. R. S.

Remind you <unk> results will be discuss it at the company's conference call.

It is important to mention there our numbers are presented in U S. Dollar as it is our functional currency.

This conference call May include statements about future events based on the Embraer expectations and financial market trends.

Such statements are subject to uncertainties that may cause actual results to differ from those expressed or implied in this conference call.

Except in accordance of the applicable rules the company assumes no obligation to publicly update any forward looking statements for.

For a detailed financial information the company encourages reviewing publications filed by the company with the Brazilian call me as someone who already has more of a reality or C V M.

At this time all participants are in a listen only mode.

Bill gave instructions later on for participation in the two question and answer sessions.

Participants on today's conference call or Francisco Gomes Neto.

<unk> and CEO of Embraer.

Antonio Carlos Garcia, Chief Financial Officer.

Louise Harrison corporate communications director and myself.

Conference call, we'll have three parks in the first part top management will present, the company's Q2 results in the second part we will host a Q&A session only for investors and last but definitely not least in the third part will wholesale dedicated Q&A session only for the press.

It is my pleasure to now turn the conference call to our President and CEO Francisco Gomes. Please go ahead since high school.

Morning, everyone.

It's a pleasure to be here with you to share our second quarter 2025 year results.

We had another strong quarter reinforcing the consistency in our sustainable growth journey.

Embraer delivered the highest second quarter revenue in its history totaling one 8 billion.

Our adjusted EBIT margin was 10, 5% the highest level for the second quarter over the past decades.

The backlog recorded a new $29 7 billion, all time high driven by stronger demand across all business units.

Deliveries were up 30% year over year result of our focus on operational efficiency and on our production leveling initiatives.

The book to Bill ratio was closer to two to one in the last 12 months across all business units.

U S tariffs continue to be a major concern to our business, but with an important step forward last week, highlighting the importance of our industry not the owner for Brazil, but also for the U S.

We are confident about further progress in negotiations.

With other recent agreements in our sector that had set a positive precedent.

Now they may highlights for the company during the quarter.

Commercial aviation performed very well across both U one and E. Two platforms S. A S or they're at 45 U N 95 E twos with 10 additional options at the same time Skywest purchased 60, you want 70 fives with 50 additional options.

The division's backlog Richard $13 1 billion with a strong one eight to one book to Bill over the last 12 months.

Is that gonna abbreviation delivered another strong quarter with a record second quarter revenue of circa $550 million in their robust seven 4 billion backlog.

Fourth it by 2.421 book to Bill over the past 12 months.

Defense and security, Portugal confirm it it's six KC three nights purchase including 10 additional options that may be use it by other European Congress to facilitate future acquisitions.

Lithuania also became the seventh NATO countries to selected the aircrafts. The division ended the quarter with a $4 3 billion backlog in the trailing three six to one book to Bill in the last 12 months.

Simpson supports continued its global expansion signing eight new contracts, increasing MRO capabilities with computer error in launching full flight simulator partnership with CAE in Montreal, Canada in Madrid, Spain.

The division closed the quarter with a $4 9 billion backlog in a two to one book to Bill that means carve off sales versus revenue in the last 12 months.

We continue to work in our production level initiatives to increase efficiency productivity output and improve cash flow.

In the previous quarter, we shared with the market.

Nope.

This quarter, we highlight the KC 399 in the defense segment, where we have also seen significant operational gains over the past year.

These improvements include double digit increases in aircrafts production operational efficiency reduction in production cycle time, and decreasing cost of poor quality as you can see in the presentation is light.

Our boat tariffs, let me share with you what we have been doing to manage the situation.

Whether it be very active with high level of authorities in Brazil and in the U S does demonstrate the relevance of our company in terms of job creation investments services to passengers and to support the development of a negotiated solution as we have seen with other countries.

As you can see in this slide our company plays a key role in the U S original aviation markets as our aircraft transports approximately 100 million passengers every year.

Our business currently supports 13000 jobs in the country and should the great. Another 5500 jobs by 2030 with an impressive trade balance of 8 billion in favor of the U S.

Embraer was also willing to invest another 500 million in the U S, which should create roughly another 2500 jobs in the country with a combination of our organic growth in the country and the potential adoption of our KC three ninth blocker form by the U S Air Force before the end of the decade.

We are excited to say we are in advance of the conversations with their relevant U S partner for this project.

We continue to believe in Idaho gates firmly for a return to the zero tariff a rule for the global aerospace industry, which was the status quo over the previous 45 plus years.

We also continue to encourage a constructive dialogue between the Brazilian and the U S governments to reach an amicable resolution.

The short term as you know we have taken measures to preserve this year's results the impact of the current 10% tariff is he's already considered in our forecast for the year.

This means upsides, if tariffs return to zero soon.

Now move on to operational results by segment over the next few slides.

Oh figures are basically on year on year comparisons.

In commercial aviation revenues increased 4% because of product and customer mix and the adjusted EBIT margin remains flat at four 3%.

There's active aviation the topline sore at 64% supported by higher volumes and product mix.

Adjusted EBIT margin increased to 14.5% because of operating leverage and cost containment initiatives.

Moving to defense and security revenues grew 18% because of 890 Super Tucano production.

Movement of almost 10 percentage points in the adjusted EBIT margin to nine 2% reflects higher 80, 2090 volumes in better Casey to 90 customer mix.

In service and support revenues rose, 13% driven by the ramp up of augments GTS engine shop there.

Adjusted EBIT margin declined slightly to 15, 5%, mainly due to higher past due credits provisions.

<unk> achieved an important milestone in the second quarter with the announcement of its first by the order with revel, putting vehicles in 40 options, including after market services, Let me pass it over to Antonio So he can highlight the main financial points over the quarter.

Thank you Francisco.

Morning, and good afternoon, everyone.

Yeah, a lot of moving parts around the words, but let me present to you what we really control.

Our operational and financial results.

Our for pharmacy in Q2 was brilliant and consistent.

As you will see shortly.

First and foremost that's me Hatorade, our 2025 guidance.

We are confident to achieve.

Between seven to seven and a half your revenues.

Seven five and eight and 3% in adjusted a bit Marty and more than 200 million and adjusted free cash flow.

From a financial perspective.

Meanwhile, we expect that should deliver between 77 and 85 aircrafts in commercial aviation.

And under 45.

And on the 55 executive aviation from an operational point of view.

Turning to the quieter all my comments will be based on year over year comparisons unless noted.

Let me move to slide.

12, beginning with deliveries.

Embraer delivered 61 aircrafts across all business units for a 30% increase.

In commercial aviation deliveries totaled 19 aircrafts in line.

With the same period of last year.

In the first half of the year, we delivered.

Duane six commercial aircrafts, which represents 32% of the mid point of our full year guidance of 81 aircrafts marginally below the five years' average of 35% for the first semester.

In his active aviation, we delivered 38 jets of which 21 were in the light segment and 17 to mid size for an increase of 41%.

Marty Fortunately in the first half of the year, we delivered six two on business Jets, which accounts for a 41% of the midpoint of our full year guidance of 150 Jets.

Well I'll go over the five years average of 32% for the first semester.

Guilherme Paiva: Good morning, ladies and gentlemen, and thanks for standing by. As a reminder, this conference is being recorded. Its broadcast is intended exclusively for the participants of these events and may not be reproduced or retransmitted without the express authorization of Embraer. This conference call will be conducted in English, but please let me say a short announcement for Portuguese speakers. Essa conferência será realizada originalmente em inglês, para ouvir a tradução em português, pressione o botão de interpretação da plataforma e selecione o idioma desejado. Para melhorar a qualidade da transmissão em português, clique também em desativar o áudio original na plataforma Zoom. My name is Guilherme Paiva, and I am the Head of Investor Relations and M&A for Embraer. I want to welcome you to our second quarter earnings conference call.

Slide 13.

Our company wide backlogs are recorded a new all time high of $29 $7 million up.

A significant 40%.

Looking at the backlog for Commission aviation grew 16% Y O for executive Aviation was 62%, reflecting the growing demand for our aircraft in both segments.

In defense and security the backfill of the double supported by its strong momentum KC Joanne on the 19th and they've chosen to not Super Tucano saves.

Why is service and support their backlog increased 55% highlighting the continued and consistent growth in this segment.

Moving to revenue our topline was one point to 80 billion the best second quieting, our history and 22% higher.

Guilherme Paiva: The numbers in this presentation contain non-GAAP financial information to help investors reconcile Eve's financial information in GAAP standards to Embraer's IFRS. We remind you, Eve's results will be discussed at the company's conference call. It is important to mention that our numbers are presented in the U.S. dollar, as it is our functional currency. This conference call may include statements about future events based on Embraer expectations and financial market trends. Such statements are subject to uncertainties that may cause actual results to differ from those expressed or implied in this conference call. Except in accordance with the applicable rules, the company assumes no obligation to publicly update any forward-looking statements. For detailed financial information, the company encourages reviewing publications filed by the company with the Brazilian Comissão de Valores Mobiliários, or CVM.

In our breakdown by business.

We can see commercial and executive aviation were responsible for more than 60% of their revenue followed by services and support that with 25% and defense and security with 12, 1%.

Moving to the next slide slide 14.

We generated 246 million in adjusted EBITDA in the second quarter with a 13, 5% margin now adjusted EBIT for the quarter for us.

$192 million with a 10, 5% Mark the best second acquired the margin over the past 10 years.

I'd like to highlight a key milestone.

In the first half of the year, we achieved.

Yes, it bid margin of eight 7% a remarkable with step up from one point to 1% average over the past five years.

Guilherme Paiva: At this time, all participants are in a listen-only mode. We will give instructions later on for participation in the two question and answer sessions. Participants on today's conference call are Francisco Gomes Neto, President and CEO of Embraer; Antonio Carlos Garcia, Chief Financial Officer; Luis Harrison, Corporate Communications Director; and myself. This conference call will have three parts. In the first part, top management will present the company's Q2 results. In the second part, we will host a Q&A session only for investors. Last but definitely not least, in the third part, we will host a dedicated Q&A session only for the press. It is my pleasure to now turn the conference call to our President and CEO, Francisco Gomes Neto. Please go ahead, Francisco.

Why is this is a significant achievement we are aware that the second half of the year, you'll bring important changes.

Really mainly by inflationary pressures for.

Foreign exchange rate volatility and ongoing tariffs discussion for U S. Now, let's move to the next slide slide 15.

In second quarter, we consume 162 million in adjusted free cash flow, mainly because of a 12 million increasing working capital in preparation for higher numbers of aircraft to deliver in the next two quarters. For example, we have a handful.

After aircrafts to be delivered in late June that moved to the right.

Broken out our investments.

Francisco Gomes Neto: Good morning, everyone. It is a pleasure to be here with you to share our Q2 2025 results. We had another strong quarter, reinforcing the consistency in our sustainable growth journey. Embraer delivered the highest Q2 revenue in its history, totaling $1.8 billion. Our adjusted EBIT margin was 10.5%, the highest level for a Q2 over the past decade. The backlog recorded a new $29.7 billion, all-time high, driven by strong demand across all business units. Deliveries were up 30% year over year, a result of our focus on operational efficiency and on our production leveling initiative. The book-to-book ratio was closer to 2:1 in the last 12 months across all business units. U.S. tariffs continue to be a major concern to our business, but with an important step forward last week, highlighting the importance of our industry, not only for Brazil, but also for the U.S.

In the second quarter exclude the eve, we allocated a total of $97 million or 10% lower at Syncrude is 53 million Capex to $88 million. In addition to intangibles 9 million research and $90 million the pool program to support new contracts.

It is important that you highlight.

Our capital allocation remains focused and is active aviation services and support the segments with the highest rate of return rates, especially in U S markets.

To complete the lives they are two important points here first.

Our reported net income was 79 million during the quarter with a four 3% margin.

It was roughly 100 million lower in our hip part that David because.

Cause over there and they've got the noncash impact of Mark to market of E V warrants and the losses associated with Fayetteville a structuring.

Second our adjusted net income and $5 million in the Reds.

My golf minus 0.3%.

They're almost 85 million of shortfall to our reported net income.

Francisco Gomes Neto: We are confident about further progress in negotiations, in line with other recent agreements in our sector that have set a positive precedent. Now, the main highlights for the company during the quarter. Commercial aviation performed very well across both E1 and E2 platforms. SAS ordered 45 E195-E2s with 10 additional options. At the same time, SkyWest purchased 60 E175s with 50 additional options. The division's backlog reached $13.1 billion, with a strong 1.8 to 1 book-to-book over the last 12 months. Executive Aviation delivered another strong quarter, with a record Q2 revenue of circa $550 million in their robust $7.4 billion backlog, supported by a 2.4 to 1 book-to-book over the past 12 months. In defense and security, Portugal confirmed its sixth KC-39 purchase, including 10 additional options that may be used by other European countries to facilitate future acquisitions.

Because of negative $163 million in deferred tax.

Driven by stronger foreign exchange rates and positive 79 million adjustment for me the results.

Let's move to slide 16.

I'd like to start by drawing your attention to the upper right corner.

Over the past 12 months Embraer exclude eve has significantly reduce it both its gross and net debt position by approximately $560 million 720 million respectively.

We closed the second acquire them with a net debt EBITDA, excluding <unk> ratio.

0.7 times, a substantial improvement from two times a year ago that said the negative free cash flow of 547 million for named Brad stand alone in the first half of the year.

Because of businesses in that country reach to a temporary increase in leverage compared to end of 2024.

As part of our liability management strategy.

We remain focused on extending that to duration and lower our cost of capital.

As a results our average debt maturity without team has increased to six one years up from three seven years.

Francisco Gomes Neto: Lithuania also became the seventh NATO country to select the aircraft. The division ended the quarter with a $4.3 billion backlog and a trailing 3.6 to 1 book-to-book in the last 12 months. Service & Support continued its global expansion, signing eight new pool contracts, increasing its MRO capabilities with Commuter Air, and launching a full-flight simulator partnership with CAE in Montreal, Canada, and Madrid, Spain. The division closed the quarter with a $4.9 billion backlog and a 2:1 book-to-book. That means top of sales versus revenue in the last 12 months. We continue to work in our production leveling initiatives to increase efficiency, productivity, output, and improve cash flow. In the previous quarter, we shared with the market the improvements in our predator production line. This quarter, we highlight the C-390 Millennium line in the defense segment, where we have also seen significant operational gains over the past year.

The end of last year.

Slide 17.

To conclude my presentation I'd like to talk briefly about shareholders and shareholder remuneration, Firstly I would like to thank you all for your support is saying that I'm proud to mention our company celebrated in July our 25 years leasing University and the New York.

Stock exchange.

Second <unk> declared nearly 100, that's 43 million Brazilian reais.

Easter is young magnitude during the quarter, which translates to 19 Brazilian cents per share. These amount to me be complemented by a top up dividend.

And if needed to meet the minimum 25% and net income distributions required by Brazilian corporate law.

For amount to be paid in a single installment F. There are Duane Duane seeks.

Shareholders' meeting.

With that I hand back to Francisco for his final remarks, and thank you very much.

Francisco Gomes Neto: These improvements include double-digit increases in aircraft production, operational efficiency, reduction in production cycle time, and decreasing cost of pool quality, as you can see in the presentation slide. About tariffs, let me share with you what we have been doing to manage this situation. We have been very active with high-level authorities in Brazil and in the U.S. to demonstrate the relevance of our company in terms of job creation, investments, services to passengers, and to support the development of a negotiated solution, as we have seen with other countries. As you can see in this slide, our company plays a key role in the U.S. regional aviation market, as our aircraft transport approximately 100 million passengers every year. Our business currently supports 13,000 jobs in the country and should create another 5,500 jobs by 2030, with an impressive trade balance of $8 billion in favor of the U.S.

Thank you Antonio.

In summary, our defense business brought good news from Europe, with Portugal's Newport's easy and Lithuanians selection of the K C 219, Skywest order.

Our you want 75 aircrafts consolidates, our dominant position in the U S. Regional markets that you would take the opportunity to say thank you to S. A S. A longstanding partner of Embraer through that you want a blocker for them and now has a new operator of the <unk> two family.

Our executive aviation maintained its strong performance in sales and deliveries the second quarter of 2025. It was another milestone for Embraer, we delivered a record the revenues the highest second quarter. Adjusted EBIT margin you know decades enriches the new all time high backlog with back to back significant.

Orders year to date.

We continue to work hard to generate value for our customers and our shareholders and we are optimistic about a likely positive outcome for the current U S. Tariff overhang I will also thank all of the support we received from our U S customers and suppliers like.

Francisco Gomes Neto: Embraer is also willing to invest another $500 million in the U.S., which should create roughly another 2,500 jobs in the country, with a combination of our organic growth in the country and the potential adoption of our C-390 platform by the U.S. Air Force before the end of the decade. We are excited to say we are in advanced conversations with a relevant U.S. partner for this project. We continue to believe in and advocate firmly for a return to the zero-tariff rule for the global aerospace industry, which was the status quo over the previous 45-plus years. We also continue to encourage a constructive dialogue between the Brazilian and the U.S. governments to reach an amicable resolution. In the shorter term, as you know, we have taken measures to preserve this year's results.

American Airlines, Skywest, Alaska, United Air Camp General Electric Honeywell, RPX, Parker, Hannifin and eat them among others in the tariff negotiation process.

And I conclude this presentation by reaffirming the foundation of our culture safety first and quality all of this.

Thanks for the trust in our company and let's now start the Q&A session.

Well now start the question and answer session well I usually carry at this conference is being recorded.

Broadcast.

Exclusively for the participants at this event and may not be reproduced or retransmitted without the express authorization of Embraer.

Francisco Gomes Neto: The impact of the current 10% tariffs is already considered in our forecast for the year. This means upside if tariffs return to zero soon. I will now move on to operational results by segment over the next few slides. All figures are based on year-on-year comparisons. In commercial aviation, revenues increased 4% because of product and customer mix, and the adjusted EBIT margin remained flat at 4.3%. In executive aviation, the top line soared 64%, supported by higher volumes and product mix. The adjusted EBIT margin increased to 14.5% because of operating leverage and cost containment initiatives. Moving to defense and security, revenues grew 18% because of A-29 Super Tucano production. The improvement of almost 10 percentage points in the adjusted EBIT margin to 9.2% reflects higher A-29 volumes and better C-390 Millennium customer mix.

We also highlight this conference call is being conducted in English with translation to Portuguese please.

This is a short announcements for Portuguese speakers.

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That's not our philosophy isn't Hassan.

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Yes.

We have a class participants interested and asking questions.

The racer hand button on the platform.

When your name is announced please make sure your microphone is on answering your question.

To give everyone a chance to participate we request to ask just one question for your time.

If you need assistance. Please use the Q&A button on the platform well also asked a question sent via the platform chat.

The first part of the Q&A session will be exclusively for equity research analysts and investors.

Francisco Gomes Neto: In Service & Support, revenues rose 13%, driven by the ramp-up of the OGMA GTF engine shop. The adjusted EBIT margin declined slightly to 15.5%, mainly due to higher past due credit provisions. Eve achieved an important milestone in the second quarter, with the announcement of its first binding order with Revo, for 10 vehicles and 40 options, including aftermarket services. Let me pass it over to Antonio so he can highlight the main financial points of the quarter.

Part of the Q&A will be only for the press.

The first question comes from Marcello Motta with J P. Morgan.

Please go ahead.

Hi, everyone. Thank you for taking the question is regarding the outlook for the second half and during the conference call and Tony mentioned on both general effects volatility potential terrorists inflationary pressure.

I was wondering how big could this challenge beat because when we look at their historical EBIT margin for the second half usually it is much stronger than what we see in the first half given the seasonality, but just wondering if there is a you know what are the.

Antonio Carlos Garcia: Thank you, Francisco. Good morning and good afternoon to everyone. There are a lot of moving parts around the world, but let me present to you what we really control: our operational and financial results. Our performance in Q2 was brilliant and consistent, as you will see shortly. First and foremost, let me reiterate our 2025 guidance. We are confident we will achieve between $7 billion to $7.5 billion in revenues, 7.5% and 8.3% in adjusted EBIT margin, and more than $200 million in adjusted free cash flow from a financial perspective. Meanwhile, we expect to deliver between 77 and 85 aircraft in commercial aviation and 145 and 155 in executive aviation from an operational point of view. Turning to the quarter, all my comments will be based on year-over-year comparison unless noted. Let me move to slide 12, beginning with deliveries.

The risks and opportunities to revise the guidance upwards during the second half given that the first half was very strong. Thank you.

Good morning, Marcel and thanks for the nice Quest I was expecting the first place.

You're right year to date, we are at eight 7% and we all know our margins that $8 three bullets.

Some comments here, we only have I would say, 20% year to date impact than the big amount of dairy skewing, our inventory to be Invoiced second half of the year, that's already something that was not in our plan.

<unk>.

The dollar $1 get weaker we always get stronger that's why.

When you do the translation there a question.

We have also.

A negative impact and also.

The PCA in Brazil, the inflation that the Puds are forecast it seems.

A little bit stronger than it was planets or less of one 3% if I put in a nutshell I would say be on the safe side.

We are keeping the guidance says.

Antonio Carlos Garcia: Embraer delivered 61 aircraft across all business units for a 30% increase. In commercial aviation, deliveries totaled 19 aircraft, in line with the same period of last year. In the first half of the year, we delivered 26 commercial aircraft, which represents 32% of the midpoint of our full-year guidance of 81 aircraft, marginally below the five-year average of 35% for the first semester. In executive aviation, we delivered 38 jets, of which 21 were in the light segment and 17 in the mid-size, for an increase of 41%. More importantly, in the first half of the year, we delivered 61 business jets, which accounts for 41% of the midpoint of our full-year guidance of 150 jets, well above the five-year average of 32% for the first semester. In slide 13, our company-wide backlog recorded a new all-time high of $29.7 billion, up a significant 40%.

As long as the next months and quarters. It will then we could revise but we are not in position to do it and nobody knows what's going to happen is two <unk> and that's why I would say.

I would say the guidance seems to be safe today, but we do prefer to be more.

Waiting months Yada yada.

There might be a different story right now.

Perfect very clear thank you.

Thank you Marcello.

The next question comes from Kristine Whack with Morgan Stanley. Please go ahead.

Yeah, Good morning, everyone Francisco Antonio and Gere Wow, what a what a really strong operating quarter. I guess, you know with U S customers facing the prospect that they would've had to pay 50% tariff on embraer.

Embraer E Jets if.

We are the aerospace exemption wasn't added how's your conversations with those customers because now that for now these tariffs are gone and they're looking at their fleet is it increasing the urgency for them to re fleet and could you see potentially more orders out of the U S E. One seven.

Antonio Carlos Garcia: Looking at each division, the backlog for commercial aviation grew 16%, while for executive aviation it was 62%, reflecting the growing demand for our aircraft in both segments. In defense and security, the backlog doubled, supported by strong momentum in C-390 Millennium and A-29 Super Tucano sales. While in Service & Support, the backlog increased 55%, highlighting continued and consistent growth in the segment. Moving to revenue, our top line was $1.8 billion, the best second quarter in our history, and 22% higher. In our breakdown by business, we can see commercial and executive aviation were responsible for more than 60% of the revenue, followed by Service & Support with 25%, and defense and security with 12%. Moving to the next slide, slide 14, we generated $246 million in adjusted EBITDA in the second quarter with a 13.5% margin.

<unk> five that they evaluate their fleet needs.

All right Christine in Francisco here, Thanks for the question.

Christina since the implementation of the first round of tariffs.

April have been working to.

To mitigate the impact for us and for the customers and for our customers and especially the 175 customers.

The final tariffs.

Lower than 10%.

Okay.

Content that we had an older aircraft.

Okay.

We're working with them.

We took delivery.

Six months.

Our.

Okay.

Yeah.

We were able to.

10%.

Okay.

For our customers.

Okay.

Okay.

Alright.

Zero.

Okay.

Okay.

The market.

Yes.

Okay.

Antonio Carlos Garcia: Adjusted EBIT for the quarter was $192 million, with a 10.5% margin, the best second quarter margin of the past 10 years. I'd like to highlight a key milestone. In the first half of the year, we achieved an adjusted EBIT margin of 80.7%, a remarkable step up from 1.1% average over the past five years. While this is a significant achievement, we are aware that the second half of the year will bring important challenges, driven mainly by inflationary pressures, foreign exchange rate volatility, and ongoing tariffs discussed with the U.S. Let's move to the next slide, slide 15. In the second quarter, we consumed $162 million in adjusted free cash flow, mainly because of a $312 million increase in working capital in preparation for higher numbers of aircraft delivered in the next two quarters.

Yeah.

Yes.

Okay.

Okay.

New orders for you.

Along this year.

Great. Thank you I'll keep it to one.

Yes.

Thank you.

Okay.

Next question comes from Myles Walton with Wolfe Research. Please go ahead.

Thanks, Good morning.

Maybe for Antonio within Defense, obviously, a great performance.

In the commentary you talked about POC completion, driving a lot of the margin accretion. So I guess based on that why wouldn't this level of performance continue if it's POC driven and not a 29 Super Tucano unit.

The deliveries.

Thanks, Michael.

The question the effect that we are.

As you could see that we are improving the performance and for sure the Super Tucano helps a lot.

Antonio Carlos Garcia: For example, we have a handful of aircraft to be delivered in late June that moved to the right. Looking now to our investments in the second quarter, excluding Eve, we allocated a total of $97 million, or 10% lower. This includes $53 million in CapEx, $28 million in addition to intangibles, $9 million in research, and $90 million in the pool program to support new contracts. It is important to highlight our capital allocation remains focused on executive aviation, Service & Support, the segments with highest return rates, especially in the U.S. market. To complete this slide, there are two important points here. First, our reported net income was $79 million during the quarter, with a 4.3% margin, which was roughly $100 million lower than our reported EBIT because of the negative non-cash impact of mark-to-mark of Eve warrants and the losses associated with the Azul restructuring.

I would say for me defense and security as a straight line to move it to the high single.

<unk>.

In the coming quarters, I don't know if it was going to happen this year, but we.

We are going there because.

The majority of our plc customer right now with shifting from Morocco contracts to export contracts include the Super Tucano by doing that.

I would say.

Is that creativity for our highest single to even double digit Marty but did not yet I would say, let's wait probably next year, but.

Could see the progression is clear crystal clear about our margin way for defense.

I would say and everything we are doing he is on the <unk>. When you revise the baseline assuming the production level in the efficiency. We are showing here I would say, we have a I would say more chances and risks okay.

Okay.

Just again here just to be clear.

29th also follow the POC method, yes.

That makes up both the 2019, the KC 390, yes.

Antonio Carlos Garcia: Second, our adjusted net income ended at $5 million in the red, with a margin of minus 0.3%. The almost $85 million shortfall to our reported net income was because of negative $163 million in deferred tax, driven by stronger Brazilian foreign exchange rates, and positive $79 million adjustment from Eve results. Let's move to slide 16. I'd like to start by drawing your attention to the top right corner. Over the past 12 months, Embraer, excluding Eve, has significantly reduced both its gross and net debt position by approximately $560 million and $720 million, respectively. We closed the second quarter with a net debt to EBITDA, excluding Eve, ratio of 0.7 times, a substantial improvement from two times a year ago.

Okay, and then just a clarification those deliveries that moved to the right where those moved to the right because of tariffs for the move to the right because of supply chain any color on that.

No. We we have talked about just for commercial aviation.

I would say.

Everybody knows about it there is the situation then we.

We are waiting.

The lesser too.

Sure Joe gave us the authorization to issue the jewelry wise, the aircrafts and who haven't joined of the June some commercially official or other customer, but I would say nothing that is going to compromise. The guys of subsidies is really that I would say the paperwork was not finished jewelry wise the aircrafts.

Superb show output.

For this much more of what we deliver for commercial aviation and I'd say it continues to see effects of reduction laterally, but not invoicing those aircrafts.

Anthony FERC Commission.

Thanks, so much.

Antonio Carlos Garcia: That said, the negative free cash flow of $547 million for Embraer standalone in the first half of the year, because of business sizing analytics, has contributed to a temporary increase in leverage compared to the end of 2024. As part of our liability management strategy, we remain focused on extending debt to duration and lower our cost of capital. As a result, our average debt material without Eve has increased to 6.1 years, up from 3.7 years at the end of last year. In slide 17, to conclude my presentation, I would like to talk briefly about shareholders and shareholder remuneration. Firstly, I would like to thank you all for your support and say that I am proud to mention our company celebrated in July our 25-year listing anniversary at the New York Stock Exchange.

Thank you.

The next question comes from Ronald Epstein with Bank of America. Please go ahead.

Some of the data.

Hey, Good morning, guys can you hear me.

Yes, Ron Great Martin.

So I'm not sure if you can answer this but I'm going to ask it anyway.

If you look at the relative valuation November compared to say Tobey Tobey fixed investments today.

You guys market cap.

<unk> market cap.

Would you consider cutting.

Ruth.

Because it seems like maybe there would be more value there.

As a separate company that is part of.

Umbrella given that Derby.

Or in that same market.

And other considerations.

Ron Thanks for the.

The question and difficult to be answer I would say oh evaluated our evaluation of pick up a lot in the less beers for one side.

Antonio Carlos Garcia: Second, Embraer declared nearly $143 million in interest on equity during the quarter, which translates to $0.19 per share. This amount may be complemented by a top-up dividend if needed to make the minimum 25% net income distribution required by Brazilian corporate law. The full amount will be paid in a single installment after our 2026 annual shareholders' meeting. With that, I hand back to Francisco for his final remark, and thank you very much.

And we do see a lot of value.

Premium for our being together when we talk about synergies when they talk about efficiency. When you talk about the product product development that's why.

Uh huh.

We didnt change our strategy to be one conglomerate of or built into the unit then.

C. C. You also Julian that we have EV EV still.

It needs more liquidity order to pick up as I would say, let's see how we've developed but we don't have any thoughts to changing the way we are structured today as a full corporate Asia with all units and really enjoying the premium for being together and.

Francisco Gomes Neto: Thank you, Antonio. In summary, our defense business brought good news from Europe, with Portugal's new purchases and Lithuania's selection of the KC-319. SkyWest's order of our E175 aircraft consolidates our dominant position in the U.S. regional market. I will take the opportunity to say thank you to SAS, a longstanding partner of Embraer through the E1 platform and now as a new operator of the E2 jet family. Our executive aviation maintains its strong performance in sales and deliveries. The second quarter of 2025 was another milestone for Embraer. We delivered record revenues, the highest second quarter adjusted EBIT margin in a decade, enriched the new all-time high backlog with back-to-back significant orders year to date. We continue to work hard to generate value for our customers and our shareholders, and we are optimistic about a likely positive outcome for the current U.S. tariff overhang.

And remember Erica Mann.

As a separate company.

That's why I, let's see as long ago, having more liquidity for Eva we were going to see those effects from them, but they'll say for the overall <unk>.

I will say legacy Embraer, we are so happy what we are doing right now.

Got it got it and if I may as a follow on along that same line of questioning.

You guys have any update on that.

Thoughts on product development.

Or what's going on there or is there anything you can share with the market regarding their potential new aircraft.

All right. Thank you you're always come with a question.

We keep investing in new technologies as we mentioned before we don't have any other new within that to share with.

With the market at this point of time.

Got it thank you very much.

You're welcome Carlos.

The next question comes from.

Francisco Gomes Neto: I will also thank all the support we received from our U.S. customers and suppliers like American Airlines, SkyWest, Alaska, United, AirCap, General Electric, Honeywell, RTX, Party Hanging Fin, and Eton, among others, in the tariffs negotiation process. I conclude this presentation by reaffirming the foundation of our culture: safety first and quality always. Thanks for your trust in our company, and let's now start the Q&A session.

I'm try Ferreira with Bradesco BBA, sorry, [laughter]. Please go ahead.

Good morning, Thanks for the space here and congrats on the results.

I have one question you mentioned in the second quarter service segments. There were higher credit provisions just wanted to check if those are related to the 9 million.

Millions of dollars and in the income statement and if then if not if you could please explain what do they mean and the impact they had on the service EBIT margin. Thank you.

Hi, Thanks, Thanks for the question is easier.

Luis Harrison: We will now start the question and answer session. We remind you again that this conference is being recorded. Its broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer. We also highlight this conference call is being conducted in English with translation to Portuguese. Please let me say a short announcement for Portuguese speakers. Esta conferência está sendo realizada originalmente em inglês. Para ouvir a tradução em português, pressione o botão de interpretação da plataforma Zoom e selecione o idioma português. Após selecionar o idioma no botão de interpretação, clique também em desativar o áudio original na plataforma para melhorar a qualidade da transmissão em português. We request participants interested in asking questions to press the raise your hand button on the platform.

We know that there is a customer going through us.

And our restructuring process. So the charges are related to the process.

Yes, just to complement to have I would say.

From Q2 onwards, we have almost zero effect from this.

Restrict as well everything we booked already in Q2.

Okay. Thank you.

The specifics and the specific impact on service.

That to us.

<unk> had them services on David sides, when we book the less.

The debt.

Provision for bad debts.

The main impact on services.

From the structuring standpoint.

And just really quick.

And clients buy aircraft, but they also buy services and parts, so thats related to that.

What's the latest lesser right off with it.

Luis Harrison: When your name is announced, please make sure your microphone is on and start your question. To give everyone a chance to participate, we request to ask just one question per time. If you need assistance, please use the Q&A button on the platform. We will also answer questions sent via the platform chat. The first part of the Q&A session will be exclusively for equity research analysts and investors. The second part of the Q&A will be only for the press. The first question comes from Marcelo Motta with JPMorgan. Please go ahead.

Very clear thank you.

Yes.

The next question comes from Luca <unk> with Santander. Please go ahead.

Yeah.

Good morning, guys. Thanks for the opportunity to hear and congratulations for the results I have a question that as Ron said I don't know if you can answer but I'll ask anyway.

The Polish potential water for the first for the Citron Lantus do you have any updates.

And also on bets would it make sense for you to build the.

Our new line of.

A new Assembly line for the COVID-19, Poland, even if you don't get the order from them to build the aircraft for NATO countries.

Guilherme Paiva: Hi, everyone. Thank you for taking the question. It is regarding the outlook for the second half. During the conference call, Antonio mentioned about effects, volatility, potential tariffs, and inflationary pressure. Just wondering how big could this challenge be? When we look at the historical EBIT margin for the second half, usually it is much stronger than what we see in the first half, given the seasonality. Just wondering if there are risks and opportunities to revise the guidance upward during the second half, given that the first half was very strong. Thank you.

Hello, Lucas. Thank you for your question, Chris because speaking.

We continue to working.

With patents.

And that campaign, we have as another campaign we have.

Positive review.

About our opportunities to them.

Well I mean, we have a plan to increase production of <unk> from now through 2031, one per year. This year, we should produce five and we are in our fifth to achieve 10 units per year by 2000 2030.

Antonio Carlos Garcia: Good morning, Marcelo, and thanks for the nice question. I was expecting the first place. You are right. Year to date, we are at 8.7%, and we all know our margin is at 8.3%. Some comments here, we only have, I would say, 20% year-to-date tariff impact. The big amount of tariffs still in our inventory to be invoiced the second half of the year, that is already something that was not in our plan. The dollars get weaker, reais get stronger. That is why when you do the translation, the cost in reais, we have also a negative impact. Also the in PCA in Brazil, the inflation that we put our forecast, it seems a little bit stronger than what was planned, more or less 1.3%. If I put in a nutshell, I would say be on the safe side.

At this point of time I mean, we are working with big campaigns as India and the U S. Those campaigns for sure.

Requiring localization of the production of the aircraft in case of Poland.

Dependent on the weather other deals in the region for us to use a bottom there is a hub we had to spend with them.

Combined with the commercial jets, but unfortunately, they decided to go to the competition. So this change it's a little hour.

Our branch for the for the country, but we still have plans for the KC 390.

To do some local more localization if wheeling.

<unk>.

Thanks for Cisco, if I may make a follow up on tariffs just a quick one reading how old the U S trade representative rights on their website about the world trade organization agreement on the CVV aircrafts. They save the agreement requires signatories to eliminate tariffs on alone.

Antonio Carlos Garcia: We are keeping the guidance as long as the next months and quarters evolve, then we could revise, but we are not in a position to do it. Nobody knows what can happen during the tariffization. That is why I would say the guidance seems to be safe today, but we do prefer to be more waiting for months in order to tell the market a different story right now.

Discriminatory basis toward their signatories when what do you understand about the need for the U S to sign out of this agreement if they keep the 10% tariff so for Brazil, one aircraft.

This question is difficult to me to answer you should answer the.

Guilherme Paiva: Perfect. Very clear. Thank you.

Antonio Carlos Garcia: Thank you, Marcelo.

The officials in the U S. But we are we are working hard we are aggregating their installation of their zero tariff.

Luis Harrison: The next question comes from Kristine Liwag with Morgan Stanley. Please go ahead.

And we see this as part of other agreements, you'll see agreement between U S and UK and more recently the U S and in Europe and.

Antonio Carlos Garcia: Hi. Good morning, everyone. Francisco, Antonio, and Guy, what a really strong operating quarter. I guess, with U.S. customers facing the prospect that they would have had to pay a 50% tariff on Embraer E-Jets if the aerospace exemption wasn't added, how are your conversations with those customers? Because now that for now these tariffs are gone and they're looking at their fleet, is it increasing the urgency for them to refleet? Could you see potentially more orders out of the U.S. on E175s as they evaluate their fleet needs?

We believe we we can be the next.

In a bilateral negotiation between Brazil, and the U S or even U S are recognizing the importance of our industry two to generate jobs and.

And making investments in the country.

That's pretty clear Francisco, thanks for that and good luck.

Youre welcome. Thank you.

Okay.

The next question comes from.

Antonio Carlos Garcia: Hi, Kristine. Francisco here. Thanks for the question. Actually, Kristine, since the implementation of the first round of tariffs last April, we have been working to mitigate the impacts for us and for the customers. For our customers, especially the E175 customers, the final tariff is lower than 10% because of U.S. content that we have in our aircraft. I think the time to aircraft that month. Our focus is really to reduce 10%, but it reduced a lot of the impact for our customers and for the zero tariff, which is not a precedent in the market. About the two others, are you happy? Five. Along this year.

Glenn second place.

Yeah.

Oh.

<unk> with Citi. Please go ahead.

Yes, Thanks, Francisco Antonio and Geek. So you mentioned in the prepared remarks that the U S capital allocation is going to be focused on is accurate evaluation. So wanted to confirm if there will be no commercial aviation in the expansion of the <unk>.

Florida facility you guys, you guys put out there and.

Or if we on the contrary if you could see semi family jets coming out of there, particularly as the <unk> hundred <unk> does have an assembly line in mobile, Alabama right. They have a U S production, so how youre thinking about that and then Melbourne, Florida facility. Thank you.

Yeah.

Thank you for the question.

Welcome.

By the way.

Uh huh.

The investments we are doing right now in U S. We have two big initiatives.

Firstly it is true.

Set up.

<unk> in our Melbourne facility for the business aviation.

Antonio Carlos Garcia: Great. Thank you. I will keep it to one.

We have talked about a $90 million or less.

Antonio Carlos Garcia: Yes.

Antonio Carlos Garcia: Thanks.

Antonio Carlos Garcia: Thank you, Kristine.

Almost <unk> finalizing those investments and segments.

Luis Harrison: Next question comes from Myles Walton with Wolfe Research. Please go ahead.

We are also investing more than 70 meter in Texas to extend our.

Service and support facilities Thats are the two big investments that we are doing right now and about new relocation.

Francisco Gomes Neto: Thanks. Good morning. Maybe for Antonio, within defense, obviously great performance. In the commentary, you talked about POC completion driving a lot of the margin accretion. So, I guess based on that, why wouldn't this level of performance continue if it's POC driven and not A-29 Super Tucano unit of deliveries?

Production I'm going to pass to produce or annual remark here alright. Thanks for your question.

Again for commercial Jets, we have a hybrid line and essentially said this campus, where we have same symbol <unk>.

Once the Heathrow Jets the same line. So I mean, it's very very efficient aligned for the volume we intend to make every year.

Antonio Carlos Garcia: Thanks, Myles, for the question. In fact, as you could see, we are improving the performance, and for sure, the A-29 Super Tucano helps a lot. I would say for me, defense and security is a straight line to move it to the higher single digit in the coming quarters. I do not know if it is going to happen this year, but we are going there because the majority of our POC customer right now is shifting from local contracts to export contracts, including A-29 Super Tucano. By doing that, I would say it is accurate even for a higher single digit, even double digit margin, but not yet. I would say let us wait probably next year, but you could see the progression here is crystal clear about our margin wave for defense. I would say everything we are doing here is on the POC.

And.

We believe that our business plan for the U.

It's also very attractive for both sides.

So I mean, almost 40% of our aircraft is already <unk>.

Aided by U S equipment use pumps.

And if you look at the next five years.

According to our production planning in the next five years, we expect to buy $21 billion in U S. A.

Equipment and parts and.

And we will export only 13 billion.

In five years, we will generate.

Impressive $8 billion surplus.

So we have a very good business model already.

For both countries. That's why we are.

Advocating for the restoration of the zero days and other.

Antonio Carlos Garcia: When you revise the baseline, assuming the production level and the efficiency we are showing here, I would say we have more chances than risks.

Other changes in their footprint, yes, we are making steady but again, we believe that we have a.

Guilherme Paiva: Okay. Myles, just to be clear, the A-29s also follow the POC method.

A very robust.

Economic proposal economically.

Antonio Carlos Garcia: Yeah.

Guilherme Paiva: So, it's a mix of both the A-29s and the C-390.

Value for the U S with a footprint that we have today.

Antonio Carlos Garcia: Yeah. Yeah.

Guilherme Paiva: Thanks again.

Okay.

Francisco Gomes Neto: Okay. Just a clarification, those deliveries that moved to the right, were those moved to the right because of tariffs? Were they moved to the right because of supply chain? Any color on that?

Very clear thanks, Francisco Antonio good to be here.

Thank you.

The next question comes from Danielle <unk> with <unk> BBA. Please go ahead.

Antonio Carlos Garcia: No, we are talking about just for commercial aviation. Myles, I would say everybody knows about the Azul situation, and we are waiting the lessor to give us the authorization to invoice the aircraft. We have the end of June of some commercial issues or other customers, but I would say nothing that is going to compromise the guidance of this year. It's really that I would say the paperwork was not finished to invoice the aircraft. In regards to production output, we produce much more of what we deliver for commercial aviation. I would say it continues to see effects of production leveling, but not invoicing those aircraft, at least for commercial.

Hey, Thank you very much for the opportunity. The first question with confirmation about something that's I'm trying to set and the first question.

Yeah.

I'm not sure if I understood correctly, but he said that.

20% of the tariff impact expected for the year happened in this quarter I'm not sure if I caught that correctly I would like him to triple from if possible. Please.

And the second question would be if you guys could provide us some a timetable on the test flight of Eve, it's expected that right now for the second half of this year.

Do you guys expect that to happen it could provide us with some some.

Thank you very much.

But I think for a question firstly about the tariffs year to date to have around it.

Francisco Gomes Neto: Okay. Thanks so much.

Guilherme Paiva: Thank you.

Around 20% of the tariff impact already.

Luis Harrison: The next question comes from Ronald Epstein with Bank of America. Please go ahead.

In our prostate laws and cash flow and Thats why we do expect a bigger hit in the second half of Q3 and Q4. That's why we are a little bit I would say moderate by January a fair amount of guidance for sure.

Guilherme Paiva: I followed the little button.

Francisco Gomes Neto: Hey. Good morning, guys. Can you hear me?

Guilherme Paiva: Yes.

Francisco Gomes Neto: Ronald, great. Cool. Morning. I'm not sure if you can answer this, but I am going to ask it anyway. If you look at the relative valuation of Embraer compared to, say, Joby, Joby's $16 billion today. You guys' market cap in the U.S. is $10 billion. Archer's market cap is $6 billion. Would you consider cutting Eve loose? Because it seems like maybe there would be more value there as a separate company than as part of Embraer, given that Joby and Archer are in that same market and other considerations.

Farming better, but that's why.

It's going to hit Tomorrow, our profit and loss in the second half, 80%. We said 90 bps, let's say you could calculate.

We have 20% right now year to date.

The remaining 80% is going to flow through to a Q4 and for Eva going to better proceeds for it and therefore, we are not working on the final assembly of parts in the prototypes and the plan for the first flight is for December this year.

Mr. Scott Sorry, if December is that correct December yes, correct. Okay. Thank you very much think about what you guys have a nice day.

Antonio Carlos Garcia: Ronald, thanks for the question. Difficult to be answered. I would say our valuation picked up a lot in the last years from one side, and we do see a lot of value, a premium for being together when we talk about synergies, when we talk about efficiency, when you talk about product development. That's why we didn't change our strategy to be one conglomerate of our business unit. I would say seeing also Joby, and we have Eve. Eve still needs more liquidity in order to pick up as well. I would say let's see how Eve is developed, but we don't have any thoughts to change the way we are structured today as a full corporation with all units and really enjoying the premium for being together.

Alright, well thank you.

Our next question comes from Lucas locking with XP investments. Please go ahead.

Yes.

Hello, Good morning, everyone sees controlling their game congratulations on the strong results I have one question regarding working capital I mean, we're seeing a lot of.

Production labeling initiatives on the executive division already bearing fruits regarding to the delivery pace that we're seeing on the defense Francisco showed on the presentation from combinations of bearing fruits as well in terms of efficiency.

Efficiency gains for the KC 390, <unk> My question is regarding.

The potential room that you guys see for working capital optimization fallen all of your production 11 initiatives going forward.

The space that you see or some free cash flow improvement regarding these initiatives going going through that had a working capital.

Guilherme Paiva: Remember this, Eve is a separate company.

Antonio Carlos Garcia: Yeah. That is why let us see as long as we have more liquidity for Eve, we are going to see those effects, Ronald. But I would say for the overall Embraer, I would say legacy Embraer, we are so happy with what we are doing right now.

The upcoming quarters.

Some some free cash flow discussion on your working capital it would be very insightful. Thank you guys.

Francisco Gomes Neto: Got it. Got it. If I may, as a follow-on along that same line of questioning, do you guys have any update on the thoughts on product development, on what is going on there? Is there anything you can share with the market regarding potential new aircraft?

Thanks Lucas.

Thanks for the Great question, I would say short term.

We are continuous too.

You'll find our cash flow history with this we are not happy because we accumulate negative cash flow Q1 Q3 of them.

Antonio Carlos Garcia: Ronald, thank you. You always come with a question. We keep investing in new technologies, as we mentioned before. We do not have any other news than that to share with the market at this point of time.

Balanced a little bit in Q3 of them more.

All highly positive in Q4, we are not there yet.

But we I would say we are reiterating our guidance. That's one of the indicator that were priced at most.

Francisco Gomes Neto: Got it. Thank you very much.

Because of steel.

Antonio Carlos Garcia: are welcome, always.

The highest portion of the revenue is going to happen in Q3 Q4, but for the long term our best Geofence history will give some ideas about what we could one adviser and then working capital, especially inventory. So Luca. Thanks for your question actually we have.

Luis Harrison: The next question comes from Andre Ferreira with Bradesco BBI. Sorry. Please go ahead.

Francisco Gomes Neto: Good morning. Thanks for the space here and congrats on the results. I have one question. You mentioned in the Q2 Service & Support segments there were higher credit provisions. I just wanted to check if those are related to the $9 million in the income statement. If not, if you could please explain what do they mean and the impacts they had on the Service & Support EBIT margin. Thank you.

Uh huh.

A lot of good initiatives to reduce inventory and to increase the inventory turn.

Okay.

Yeah.

It is through that.

In the past few years, we have a separate.

With their inventory levels because we.

Planets for a certain amount of aircraft a range because of the supply chain issues, we are not able to deliver oh.

Guilherme Paiva: Hi, Andre. Thanks for the question. It's Guy here. We know that there is a customer going through a restructuring process, so the charges are related to the process.

Aircrafts.

And we've put in the production process, but we are now year after year, improving this process and we want to improve further in 2010.

Antonio Carlos Garcia: Yeah. It is just to complement, we have, I would say, from Q2 onwards, we have almost zero effect from this restrict as well. Everything we booked already in Q2.

Six one months so the combination of the more accurate production planning.

This.

<unk> initiatives and other initiatives, we have in place we expect to increase our inventory turns of four currently 162 to three times a year as we release no.

Francisco Gomes Neto: Great. Thank you. What is the specific impact on Service & Support?

Antonio Carlos Garcia: That was a specific effect on services on the EBIT side when we booked the debt provision for bad debt. That was the main impact on services from the restructuring standpoint.

Almost $1 billion from our inventory in three years.

Perfect very clear. Thank you. Please continue well have a nice day.

Thank you.

The next question comes from Ronald Epstein with Bank of America. Please go ahead.

Guilherme Paiva: To replay, Andre, clients buy aircraft, but they also buy services and parts. That is related to that.

Hey, guys I'm back.

Antonio Carlos Garcia: Got it. What's the latest left and right profit?

<unk>.

Maybe one more question and this was asked sort of Botswana, maybe peel back the onion, a little bit more.

Francisco Gomes Neto: Very clear. Thank you.

When you think about the production footprint.

Guilherme Paiva: Thank you.

Luis Harrison: The next question comes from Lucas Esteves with Santander. Please go ahead.

Why wouldn't it make sense to move more executive aviation production to the U S. Given that so much of our markets here anyway.

Antonio Carlos Garcia: Good morning, guys. Thanks for the opportunity here and congratulations for the results. I have a question, as Ron said. I do not know if you can answer, but I will ask anyway. On the Polish potential order for defense for the C-390, do you have any updates? Also on that, would it make sense for you to build a new assembly line for the C-390 in Poland, even if you do not get the order from them to build the aircraft for NATO countries?

Well wrong again.

We have.

An important part of our production activities in the U S already.

Now on top as I said before I mean, our aircrafts.

Yeah, they have a content of.

It was up to 40% of our U S equipment.

So we believe we have a good combination today I mean tool to allow us to be very competitive. Yes. We are we are always making studies what else we can do.

Antonio Carlos Garcia: Hi, Lucas. Thank you for your question. Francisco speaking. We continue working with Poland in that campaign. We have, as in other campaigns, a positive view about our opportunities to win. We have a plan to increase the production of C-390 Millenniums from now to 2030, one per year. This year, we should produce five, and we are in our path to achieve 10 units per year by 2030. At this point of time, we are working with big campaigns as India and the U.S. Those campaigns, for sure, would require localization of the production of the aircraft. In case of Poland, this will depend on other deals in the region for us to use Poland as a hub. We had this plan with them, combining with commercial jets, but unfortunately, they decided to go to the competition.

In terms of our footprint, but trying to be you know ethylene as possible to offer.

Good and competitive products to our customers.

Got it and then and then the one question that nobody has asked yet surprising is our sales campaigns going on.

These airplanes.

Therefore, the ones and twos.

You guys do have a market outside the U S right. So.

What's going on there.

Alright different color.

Oh, absolutely very good question.

Yes, we.

We had a good start to this year.

With the two important.

I mean <unk> in Japan.

Important is that the airline <unk>.

Globally, and our SaaS. So both orders we know <unk> is up to $2015 five in the SaaS or 45%.

Very good important toward this end we are working in many other campaigns.

We expect to see the results for me in the next month. So we are optimistic that we are announcing new orders for four.

Antonio Carlos Garcia: This changes a little our total plans for the country, but we still have plans for the C-390 Millennium to do some local more localization if we win the order.

Or especially.

You want to we got to the $60 $60 50 from our Skywest ignore them, we do not expect a more.

Antonio Carlos Garcia: Thanks, Francisco. If I may make a follow-up on tariffs, just a quick one. Reading how the U.S. trade representative writes on their website about the World Trade Organization Agreement on Civil Aircraft, they say the agreement requires signatories to eliminate tariffs on a non-discriminatory basis to other signatories. What do you understand about the need for the U.S. to sign out of this agreement if they keep the 10% tariffs for Brazil on aircraft?

Our orders for <unk> for the U S or the U S.

Yes.

Alright, Thank you very much.

And around 41, we are see also some movement outside the U S as well for our campaigns not big numbers, but some interest from other customers.

On the new ones for outside the U S.

Got it.

Thanks.

Thank you.

The next question comes from Alberto Valerio with UBS. Please go ahead.

Hi, good morning.

Antonio Carlos Garcia: This question is difficult for me to answer. You should answer the officials in the U.S. We are working hard. We are advocating the restoration of the zero tariff. We see this as part of other agreements. You see agreements between U.S. and U.K., and more recently, U.S. and Europe. We believe we can be the next in a bilateral negotiation between Brazil and the U.S., or even U.S. recognizing the importance of our industry to generate jobs and make investments in the country.

<unk>, Thanks for taking my questions and intellectual congrats guys for the forces that are indeed fall mitigate these tighter with Sui smelter, which presumably Wes and also the American companies my questions are regarding tariffs.

I would like to know if.

The new business Jets orders you guys are able to put these higher price already to mitigate these tariffs and also.

Negotiations between the current.

Our backlog.

We have in place if there is any negotiations between the buying from using it.

Jets that you guys are paying for this tax.

Antonio Carlos Garcia: That's very clear, Francisco. Thanks for that and good luck.

And also if the airlines D. I ask you about some support playing Brad because.

Antonio Carlos Garcia: are welcome. Thank you.

I understand.

Boxers they upping those stocks. Thank you very much.

Luis Harrison: The next question comes from one second, please. Andre Ferreira with Citi. Please go ahead.

Albert Thanks for question.

About tariffs in general.

We are.

Let's say we are positive.

We will come to a good resolution for the for the for this issue because of our we believe who we have a robust very robust economic it does this with the U S. As I said before 8 billion surplus in the next five years.

Speaker 9: Yes. Thanks, Francisco, Antonio, and Guy. You mentioned in the prepared remarks that the U.S. capital allocation is going to be focused on executive aviation. Why do you not confirm if there will be no commercial aviation in the expansion of the Melbourne, Florida facility you guys put out there? Or if you could, on the contrary, if you could see some E-family jets coming out of there, particularly as the A220 does have an assembly line in Mobile, Alabama, right? They have U.S. production. How are you thinking about the Melbourne, Florida facility? Thank you.

13000 jobs currently the U S plus 5000 to be creating the next five years.

Half a billion dollars of new investments in the U S. And this was also a basis on a zero tariff. So that's why we believe I mean, we.

Have a robust economic at Tasiast to restore this.

Zero.

We have seen with other.

Other countries.

Uh huh.

Commercial jets, we don't have any plans to increase the price because of tax because of tax will be paid by the customers and business Jets, we will keep our price competitive in the U S to support our continued to continued growth in the market. So again.

Antonio Carlos Garcia: Andre, bom dia. Thank you for the question. Welcome, by the way. For investments we are doing right now in the U.S., we have two big initiatives. Firstly, it is to set up capacity in our Melbourne facility for the business aviation. We are talking about $90 million. We are more or less almost finalizing those investments. Second, we are also investing more than $70 million in Texas to extend our Service & Support facility. Those are the two big investments we are doing right now. About new relocation of production, I am going to pass to Francisco for any remark here.

Oh the impact this year is already including the projections and we are.

Maintain maintaining our guidance for this year with an upside if the tariffs are removed soon.

Thank you very much very clear.

And nowhere to <unk> sell recommendation to our share we continuously improve our farmers here. Thank you.

Thank you Antonio.

Thank you.

This concludes the question and answer session for equity research analysts and investors now.

Now well I'll start the Q&A session dedicated to the press first well answer questions in English and then well ask your questions in Portuguese well also asked a question sent via the platform check.

Antonio Carlos Garcia: Andre, thanks for the question. For commercial jets, we have a hybrid line in San José dos Campos where we assemble the E1 and the E2 jet families in the same line. It is a very, very efficient line for the volume we intend to make every year. We believe that our business plan for the U.S. is also very attractive for both sides. Almost 40% of our aircraft is already made by U.S. equipment, U.S. parts. If you look at the next five years, according to our production planning, in the next five years, we expect to buy $21 billion in U.S. equipment and parts, and we will export only $13 billion. In five years, we will generate an impressive $8 billion surplus for the U.S. We have a very good business model already for both countries.

Yeah.

Please hold while we collect questions.

Our first question comes from John <unk>. Please go ahead.

Well hi, everyone. Thanks for doing this.

I guess I'd want to touch on the tariff issue again, you mentioned.

Do you have a good case to remove the 10% I'm wondering if you could give us any guidance onto what else you might be willing to do.

They get rid of that 10%.

More.

Touch again on any more operations in the USA any commercial operations in the USA would be possible or anything else.

Any collaboration with a U S F.

Aerospace company.

And also any.

Antonio Carlos Garcia: That is why we are advocating for the restoration of the zero tariff. Other changes in the footprint, yes, we are making studies, but again, we believe that we have a very robust economic proposal, economic value for the U.S. with the footprint we have today.

Are you negotiating on this issue right now because it would be the.

40% was already removed so what what what's next.

John Thanks for your question I mean, just make sure that the impact for our customers.

U S for a commercial jets and the parts, we send it to the U S. I mean is lower than 10%, but because of the.

Francisco Gomes Neto: Very clear. Thanks, Francisco. Antonio, good to be here.

U S. The high U S content, we have in our products.

Speaker 9: Thank you.

Luis Harrison: The next question comes from Daniel Gasparete with Itaú BBA. Please go ahead.

Given that we have been working to mitigate the impact I mean, optimizing logistics, we have put in place a free trade zones temporary imports are doing a lot of things.

Guilherme Paiva: Hey, thank you very much for the opportunity. The first question, I would like confirmation about something that Antonio said in the first question. I am not sure if I understood correctly, but he said that 20% of the tariff impact expected for the year happened on this quarter. I am not sure if I got that correctly. I would like him to confirm if possible, please. The second question would be if you guys could provide us some timetable on the test flight of Eve that is expected right now for the second half of this year, when you guys are expecting that to happen, if you could provide us with some outlook for that. Thank you very much.

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What else.

Okay.

Also what what would be what are your next steps. You are you are you at all.

Discussions right now.

Antonio Carlos Garcia: Gasparete, thanks for your question. Firstly, about the tariffs, year to date, we have around 20% of the tariff impact already in our profit and loss and cash flow. That is why we do expect a bigger hit in the second half of Q3 and Q4. That is why we are a little bit, I would say, moderate by just reaffirming our guidance. For sure, we are performing better, but that is why it is going to hit more our profit and loss in the second half. 80%, we said 90 bps. So you could calculate we have 20% right now, year to date, and the remaining 80% is going to flow Q3 and Q4. For Eve, I am going to pass to Francisco here.

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Welcome John.

Thank you. The next question comes from the live chat.

Antonio Carlos Garcia: For Eve, we are now working on the final assembling of parts in the prototype, and the plan for the first flight is for December this year.

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Could you give more details on absolute impact on the results and future results. How many aircraft will deliver to muscle that is slightly to be in place.

Guilherme Paiva: Francisco, sorry, December. Is that correct?

Antonio Carlos Garcia: December, yes, correct.

Guilherme Paiva: Okay. Thank you very much. Thank you very much, guys. Have a nice day.

Antonio Carlos Garcia: are very welcome.

Speaker 9: Thank you.

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Luis Harrison: The next question comes from Lucas Laghi with XP Investimentos. Please go ahead.

The Embraer jets as well as returning to lessors will have an impact on Empire results.

Francisco Gomes Neto: Hello. Good morning, everyone. Francisco, Antonio, Guy. Congratulations on the strong results. I have one question regarding working capital. We are seeing a lot of production leveling initiatives on the executive division already bearing fruits regarding the delivery pace that we are seeing on the defense. Francisco showed on the presentation some initiatives bearing fruits as well in terms of efficiency gains for the C-390 Millennium. My question is regarding the potential room that you guys see for working capital optimization following all of your production level initiatives going forward. How is the space that you see for some free cash flow improvement regarding these initiatives going through the working capital in the upcoming quarters? Some free cash flow discussion on your working capital, it would be very insightful as well. Thank you, guys.

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Thank you. The next question comes from the live chat as well from chat.

Antonio Carlos Garcia: Thanks, Lucas, and thanks for the great question. I would say short term, we are continuing to fight for cash flow steering. We are not happy because we accumulate negative cash flow Q1, Q3, then balance a little bit in Q3, then move highly positive in Q4. We are not there yet. I would say we are reiterating our guidance. That's one of the indicators that we are quite at most because the highest portion of the revenue is going to happen in Q3 and Q4. For the long term, I will pass to Francisco to give some ideas about what we could monetize and the working capital, especially inventories.

Sir can you please address tariffs on executive Jets.

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And finally in Brazil, with the aircraft and components that we send to the U S. We have a good balance.

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So we are trying to find a way to reduce it even further.

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By optimizing the process and also making study is about.

I mean further collaboration with the U S. A.

Antonio Carlos Garcia: Lucas, thanks for your question. Actually, we have a lot of good initiatives to reduce inventory and to increase the inventory turn for the next years. It is true that in the past years, we have suffered with inventory levels because we planned for a certain amount of aircraft arranged, but because of the supply chain issues, we are not able to deliver all the aircraft we planned, we put in the production process. We are now year after year improving this process, and we want to improve it further in 2026 onwards. The combination of a more accurate production planning with these production leveling initiatives and other initiatives we have in place, we expect to increase our inventory turn for currently 1.6 to close to three times a year. This will release almost $1 billion from our inventory in three years.

Aerospace industry.

Thank you another question from Mr. Trump Center with a.

AI and Libya also what is the specific purpose of the investment and the Melbourne exact chat jet production plants increased panel production expand to do finally assembly of traders there or something else.

So we are investing to expand.

To expand our production capacity for four fields also our hour hour flight preparation area to receive and do the.

The final Bill.

Deliveries of the breakthroughs and doing some are local activities as well.

And yes banking booth.

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Aim freighters. So as you see we have already activities with the breakthroughs in the U S as well on top of their production line of the peanuts.

Francisco Gomes Neto: Perfect. Very clear. Thank you, Francisco. Antonio, have a nice day.

Yeah.

Okay.

Antonio Carlos Garcia: Thanks, Lucas.

Antonio Carlos Garcia: Thank you.

Antonio Carlos Garcia: You too.

Thank you very much. The next question comes from the line chat as well how semang Chilean law. Thank you for the presentation and congratulations on the great results I would like to ask what is the progress on the E 175, Kevin Kevin improvements and one is the first aircraft scheduled for.

Luis Harrison: The next question comes from Ronald Epstein with Bank of America. Please go ahead.

Francisco Gomes Neto: Hey, guys. I am back. Just maybe one more question. This was asked sort of, but I just want to maybe peel back the onion a little bit more on it. When you think about the production footprint, why would not it make sense to move more executive aviation production to the U.S., given that so much of the market is here anyway?

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Well good question Simon So yeah, we are very excited about this improvement.

He will bring a more more going forward for the passenger and for sure it will help us to sell.

Antonio Carlos Garcia: Ronald, again, we have an important part of our production of executive jets in the U.S. already. On top, as I said before, our aircraft, they have a content of close to 40% of U.S. equipment. We believe we have a good combination today to allow us to be very competitive. We are always making studies what else we can do in terms of footprint. We are trying to be as lean as possible to offer good and competitive products to our customers.

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Thank you very much plays hard to collect further questions.

Okay.

Francisco Gomes Neto: Got it. The one question that nobody has asked yet, surprisingly, is how are sales campaigns going on for the big airplanes? You know, for the E1s and the E2s. You guys do have a market outside the U.S., right? So what is going on there? If you can give some color around that.

This concludes the question and answer session in English for the press.

Now we'll start the question and answer session and Portuguese. This question and answer session is now being conducted in Portuguese to switch to English. Please press the interpretation button on the platform and then select English.

Antonio Carlos Garcia: Absolutely. Very good question, Ronald. We had a good start this year with the two important wings. ANA Holdings Inc in Japan, you know how important that airline is globally, and now SAS. Both orders, ANA Holdings Inc is up to 20, 15 plus 5, and SAS 45 plus 10. Very good, important orders. We are working in many other campaigns that we expect to see the results in the next month. We are optimistic that we will announce new orders for E2s, especially. For E1s, we got the 60 plus 50 from SkyWest, a big order. We do not expect more orders for E1s for the U.S.

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Francisco Gomes Neto: Got it. Thank you very much.

Antonio Carlos Garcia: Ronald, for the E1, we are seeing also some movement outside the U.S. as well for campaigns, not big numbers, but some interest from other customers on the new E1s for outside the U.S.

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Francisco Gomes Neto: Got it. Thanks.

Antonio Carlos Garcia: Thank you.

Luis Harrison: The next question comes from Alberto Valerio with UBS. Please go ahead.

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Guilherme Paiva: Hi. Good morning. Francisco and Antonio, thank you for taking my questions. I would like to congratulate you guys for the efforts that we did to mitigate these tariffs with the authorities, Brazil, U.S., and also the American companies. My question is regarding tariffs. I would like to know if for the new business jet orders you guys are able to put this higher price already to mitigate these tariffs. Also, negotiations between the current book backlog that you guys have in place, if there are any negotiations between the clients on business jets that you guys are paying for this tax. Also, if the airlines, they ask you some support on Embraer because if I understand, they are the importers, they are paying those tax. Thank you very much.

Thanks, Tony.

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Antonio Carlos Garcia: Hey, Alberto. Thank you for your question. About tariffs in general, we are, I would say, positive that we will come to a good resolution for this issue because of our, we believe we have a robust, very robust economic thesis with the U.S. As I said before, $8 billion in surplus in the next five years. 13,000 jobs currently in the U.S. plus 5,000 to be created in the next five years. You know, half a billion dollars of new investments in the U.S. This was also based on the zero tariff. That is why we believe we have a robust economic thesis to restore the zero tariff as we have seen with other countries. Commercial jets, we do not have any plans to increase price because of tariffs, because the tariffs will be paid by the customers. Business jets, we will keep our price competitive in the U.S.

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Antonio Carlos Garcia: to support our continued growth in the market. Again, all the impact this year is already included in the projections. We are maintaining our guidance for this year with an upside if the tariffs are removed soon.

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Guilherme Paiva: Thank you very much, Francisco. Very clear.

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Antonio Carlos Garcia: Alberto, sorry for not corroborating yourself recommendation to our share. We continue to improve our performance here. Thank you.

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Luis Harrison: Thank you. This concludes the question and answer session for equity research analysts and investors. Now, we will start the Q&A session dedicated to the press. First, we will answer questions in English, and then we will answer questions in Portuguese. We will also answer questions sent via the platform chat. Please hold while we collect questions. The first question comes from Jonathan Hammerdinger. Please go ahead.

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Speaker 10: Hi, everyone. Thanks for doing this. I guess I would want to touch on the tariff issue again. You mentioned that you think you have a good case to remove the 10%. I am wondering if you could give us any guidance on to what else you might be willing to do to get rid of that 10%. Touch again on any more operations in the U.S.A., any commercial operations in the U.S.A. would be possible. Anything else? Any collaboration with a U.S. aerospace company? Also, are you negotiating on this issue right now because the 40% was already removed? What is next?

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Antonio Carlos Garcia: Thanks for your question. I mean, just make sure that the impact for our customers in the U.S. for commercial jets and the parts we send to the U.S. is lower than 10%, right? Because of the high U.S. content we have in our products. Even then, we have been working to mitigate the impacts, optimizing logistics, putting in place free trade zones, temporary imports, doing a lot of things that have helped us to reduce the impact. We will continue making studies to do that. Footprint, more collaboration with the U.S. companies. The U.S. is a very important market for Embraer and we do the best we can to ensure that we will continue having a strong presence in that market. That's it. Okay.

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Antonio Carlos Garcia: Thank you. Next step, an important one, would be the localization of the C-390 Millennium. We have been working hard in the country with the U.S. Air Force. We have reinforced our team in the U.S. We are advancing in conversation with a relevant partner to localize the production of the C-390 Millennium once we succeed selling, introducing the C-390 Millennium in the U.S. Air Force.

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Guilherme Paiva: Thank you for taking my question.

Antonio Carlos Garcia: are welcome, John.

Luis Harrison: Thank you. The next question comes from the live chat. It is from Juliana Rocha from BTG Pactual. Could you give more details on Azul's impact on the results and future results? How many aircraft will you deliver to Azul that are waiting to be invoiced? The Embraer jets Azul is returning to lessors will have any impact on Embraer results?

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Antonio Carlos Garcia: Juliana, thanks for the question. First of all, I would like to highlight that Azul is a very important customer.

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Guilherme Paiva: Embraer for our E2 platform, and we know that E2 is very important for Azure. We are continuing to support this customer through the restructuring process. All impacts on the restructuring have been read into second quarter results. All write-offs have been made, okay? Now we need to wait for the procedures about the Chapter 11. From the experts we have in our backlog, we are currently in renegotiation with them. We cannot anticipate any change right now. Good discussions ongoing, and we are going to find a solution.

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Francisco Gomes Neto: Thank you. The next question comes from the live chat as well, from Cristian Favaro. Can you please address tariffs on executive jets?

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Francisco Gomes Neto: Thank you. Another question from Mr. Steve Trent with AIN Media. Also, what is the specific purpose of the investment in the Melbourne Executive Jet production plant? Increase Phenom production, expand to do final assembly of Praetors there, or something else?

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Francisco Gomes Neto: Thank you very much. The next question comes from the live chat as well from Simone Cellini. Thank you for the presentation and congratulations on the great results. I would like to ask, what is the progress on the E175 cabin improvements, and when is the first aircraft scheduled for delivery?

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Francisco Gomes Neto: Thank you very much. Please hold while we collect further questions. This concludes the question and answer session in English for the press. Now we will start the question and answer session in Portuguese. This question and answer session is now being conducted in Portuguese. To switch to English, please press the interpretation button on the platform and then select English. Agora, vamos iniciar a sessão de perguntas e respostas em português. Por favor, aguarde enquanto a gente coleta as perguntas. A primeira pergunta vem do Marcelo Rocha com a Rádio CBN Vale. Por favor, pode prosseguir. Senhor Rocha, seu microfone está em mudo. Ok, segundo. A próxima pergunta vem de Rebeca Crepaldi com o Exame. Por favor, pode prosseguir. Senhora Crepaldi, o seu microfone está mudo. A gente não consegue te ouvir. Próxima pergunta vem de Rebeca Crepaldi com Exame. Por favor, pode prosseguir. Seu microfone continua mudo? Ok.

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Francisco Gomes Neto: A gente vai para a pergunta do chat, então. A próxima pergunta é do Bruno Moura. Aqui Bruno Moura, repórter da Agência Brasil, veículo da Empresa Brasil de Comunicação. Obrigado pelo espaço para a pergunta. Como está acontecendo a negociação da Embraer para tentar a volta da tarifa a 0%? É por intermédio do governo brasileiro ou se trata diretamente com o governo americano?

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Antonio Carlos Garcia: Obrigado pela pergunta. As duas frentes. A gente está trabalhando, continua trabalhando com as duas frentes. Reconhecemos todo o esforço e agradecemos a mudança que foi anunciada na semana passada pelo governo americano. A gente continua trabalhando através do governo brasileiro, dos negociadores do Brasil e dos governos americanos também, levando o nosso caso econômico de vantagem para aquele país, para que eles possam buscar uma saída para voltar à alíquota zero na aviação, como foi nos últimos mais de 45 anos.

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Francisco Gomes Neto: Muito obrigada. Vi aqui que o Marcelo Rocha enviou a pergunta dele escrita pelo chat. Com os anúncios das tarifas anunciadas aos produtos brasileiros pelo governo dos Estados Unidos, houve o medo de demissões nas fábricas do Brasil, como em São José dos Campos, no interior de São Paulo. Após o segmento de aviões ficar de fora do tarifário, além da expectativa das projeções para 2025 anunciadas hoje pela Embraer, como fica agora essa questão da manutenção de empregos? Há possibilidade de demissões ou não?

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Antonio Carlos Garcia: No momento, agora, nós voltamos para uma situação mais gerenciável, tanto é que nós já incluímos as tarifas, os 10% ou o impacto das tarifas nas nossas projeções financeiras e estamos mantendo o nosso gasto para o ano. Para atender o gasto do ano, nós temos que entregar todos os aviões que estão planejados. Então, no momento, não está completamente fora dos nossos planos qualquer tipo de alteração, redução de quadro por causa de redução de produção.

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Francisco Gomes Neto: Muito obrigada. A próxima pergunta também vem do chat e é com o Xandu Alves, do jornal O Vale. Francisco Gomes Neto, o senhor se empenhou pessoalmente na negociação com membros do governo americano sobre as tarifas. Quanto isso foi decisivo para a retirada das aeronaves da lista que sofrerá a sobretaxa? E o que pode acontecer a partir de agora com a situação cada vez mais complicada do ex-presidente Bolsonaro? O senhor acha que o Trump possa aumentar a tarifa do Brasil ao Brasil e incluir os aviões?

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Antonio Carlos Garcia: Muito obrigado pela pergunta. A Embraer, nós somos uma empresa de engenharia, então a gente foca em dados e em coisas que a gente pode controlar. Foi isso que a gente fez desde o começo. Nós levantamos com cuidado toda a contribuição que a gente tem para os Estados Unidos. Nós levantamos a parte de empregos, aquilo que a gente colocou isso de uma forma simples de entender. O impacto que a gente gera de empregos lá, não só das operações da Embraer, mas de todos aqueles fornecedores americanos que nós compramos muitos equipamentos. Estruturamos isso, incluímos os investimentos, incluímos a importância dos nossos aviões naquele país. Os aviões regionais da Embraer são os únicos que são aprovados naquele segmento de até 80 assentos. Estruturamos essas informações e levamos para as pessoas certas, terem essa visibilidade.

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Antonio Carlos Garcia: Como eu falei, eu acho que é caso econômico muito robusto que a gente oferece. Fizemos a mesma coisa do lado brasileiro. Do lado brasileiro, a gente mostrou também a contribuição para o Brasil e o risco da Embraer ficar numa tarifa tipo 50%. Assim, a gente continua com a mesma tese e, com base nos outros acordos que a gente vem observando em outros países, que traz a aviação de volta para a alíquota zero, nós temos uma boa expectativa que isso venha a acontecer conosco também. Aí vai permitir a gente continuar os mesmos planos de anteriormente. Com relação à parte política, a gente não tem como comentar, porque a gente não entra nesse campo. A gente foca realmente no campo econômico e, como eu falei, a gente tem uma tese muito robusta para defender.

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Francisco Gomes Neto: Muito obrigada. A próxima pergunta é via áudio. Ela vem de Raquel Brandão com InvestNews. A gente pede que, por favor, vocês desmutem o próprio microfone aí do lado de vocês, para que a gente possa ouvir vocês aqui na plataforma, está bom? Pode prosseguir. Senhora Raquel Brandão, o seu microfone está mutado. Por favor, pode prosseguir. Próxima pergunta, Raquel Brandão com InvestNews. Pode prosseguir. O seu microfone segue mutado do seu lado. Por favor, abra para poder falar. Senhora Brandão, a gente ainda não te escuta.

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Antonio Carlos Garcia: Raquel, faça pelo chat, então, a pergunta e a gente responde. Deve estar tendo algum problema, porque você não consegue desmutar o microfone. Faça pelo chat.

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Francisco Gomes Neto: Muito obrigada. A próxima pergunta também é via áudio e é do Maurício Martins com a O Globo. Por favor, desmute o seu microfone para que você possa fazer a sua pergunta. Por favor, pode prosseguir.

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Luis Harrison: Perfeito, perfeito. Bom dia a todos. Bom, a minha pergunta ainda na linha das tarifas, que eu acho que está dominando hoje as conversas, é pouco em relação também à cadeia de suprimentos, né? Porque, qual pode ser o impacto? Porque tudo bem, hoje o Brasil não está taxando as importações que a gente faça, por exemplo, dos Estados Unidos, e muitos fornecedores da Embraer estão lá. Mas eu queria entender pouco como é que vocês projetam o impacto das tarifas atuais de 10% e de possíveis novas guerras tarifárias em relação também à cadeia de suprimentos, e qual é hoje a dependência da Embraer em relação a fornecedores de peças e de insumos que estejam lá nos Estados Unidos.

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Luis Harrison: Como é que vocês estão também trabalhando em relação a eles para que a relação siga harmônica e não haja nenhum prejuízo daqui para frente, também em relação à produção, não somente à venda.

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Antonio Carlos Garcia: Maurício, obrigado pela pergunta. Olha, fiquem à vontade para perguntas sobre tarifa. A gente já estava preparado aqui hoje, seria dia com bastante perguntas e dúvidas sobre tarifa, e a gente está aqui à disposição para vocês poderem ficar em ter o mesmo nível de conforto do que nós, nesse processo, apesar das incertezas. Muito bem. Assim, no início do processo, houve alguma reação de fornecedores pela falta de clareza no processo da tarifa, mas a gente evoluiu bastante na relação com eles, para entender os impactos aqui e ali. Até o momento, a gente não tem registrado nenhum impacto de tarifa assim nos nossos custos de insumos. É isso. A gente compra muita peça nos Estados Unidos, como eu falei, mas compra peças também na Europa, compra peças na Ásia, compra peças no Brasil. Eu acho que esse processo está sendo bem administrado pelo nosso pessoal.

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Antonio Carlos Garcia: Até o momento, a gente não tem nenhum impacto e a relação segue harmônica, usando a sua própria palavra, entre nós e os nossos fornecedores principais.

Francisco Gomes Neto: Muito obrigada. A próxima pergunta é de Raquel Gamarski. Por favor, pode prosseguir.

Guilherme Paiva: Bom dia, vocês me ouvem?

Antonio Carlos Garcia: Sim.

Guilherme Paiva: Bom dia, Francisco. Seguindo em tarifa, queria entender se tem algum outro investimento nos Estados Unidos previsto ou em negociação para levar as tarifas a zero e se aqueles dois investimentos que estavam na apresentação já estavam no plano de vocês ou se foi uma coisa negociada para essa lista de exceção. Obrigada.

Antonio Carlos Garcia: Bom, os investimentos que nós anunciamos já foram anunciados anteriormente, mas só lembrando, são investimentos para ampliar a nossa capacidade nas operações em Melbourne, que inclui atividades para a produção dos aviões ou acabamento dos aviões dos Estados Unidos. Investimento importante em Dallas, no Texas, para a gente ampliar a nossa capacidade de atender os nossos aviões comerciais. E esses investimentos, na verdade, são base para poder apoiar o retorno da tarifa zero. Porque eles foram definidos, eles foram aprovados, foram calculados com base num volume de negócios com os Estados Unidos. Então, é isso que nós temos dividido com eles. Uma vez que eles ponham uma tarifa que bloqueia a nossa venda de aviões ou diminui a nossa venda de aviões nos Estados Unidos, primeiro, nós vamos comprar menos equipamentos americanos, vamos produzir menos aviões.

Antonio Carlos Garcia: Cada vez que a gente produz menos avião, a gente compra menos equipamento americano, gera menos empregos nos Estados Unidos e também limita a nossa capacidade de investimento no futuro, que também é detrimental para o mercado americano. Por isso que eu insisto na tese da robustez econômica, porque a tarifa para a Embraer, ela não prejudica só a Embraer, ela prejudica e muito o mercado americano também.

Guilherme Paiva: Eu acho que a gente tem algum outro investimento para os Estados Unidos em negociação para levar a tarifa para zero.

Antonio Carlos Garcia: O que nós temos nos Estados Unidos sinalizado é a oportunidade de montar localmente o C-390 Millennium. Isso seria investimento muito grande, investimento aí da ordem de meio bilhão de dólares, e esse investimento poderia gerar 2,000 empregos adicionais nos Estados Unidos. Este sim, nós sinalizamos como oportunidade de investimento local, com a tarifa retornando para zero.

Francisco Gomes Neto: Muito obrigada. A próxima pergunta é de Rebeca Crepaldi com Exame. Por favor, pode prosseguir.

Guilherme Paiva: Oi, vocês me escutam?

Antonio Carlos Garcia: Agora sim, Rebeca. Vamos em frente.

Guilherme Paiva: Tudo bom? Bom dia. Parabéns pelos resultados. Eu estou pouco confusa ainda e eu peço desculpas porque acho que você retomou diversas vezes esse assunto, mas eu quero que você explique de novo, se puder, o impacto de 20%. Porque você acabou de dar uma fala que não temos registrado nenhum impacto de tarifas no nosso custo de insumo. Ao mesmo tempo que você falou que até o momento 20% dos impactos das tarifas já são sentidos no fluxo de caixa e vocês esperam impacto maior no próximo semestre. Você pode retomar esse número de 20%? Porque no final eu quero saber qual que é o número do impacto das tarifas nos resultados de vocês.

Antonio Carlos Garcia: Bom, Rebeca, é o Antônio, bom dia. Só para relembrar, a gente falou no último call de resultados que a gente tinha impacto de algo em torno de 0.9% da nossa receita, que dá 65 milhões no ano. O que eu falei é o seguinte: de 65 milhões, 20% aconteceu até agora, no primeiro e segundo trimestre. O resto acontece no terceiro e quarto, baseado em 10%. A gente paga para a aviação executiva a tarifa, não paga para a aviação comercial. Também não teve ainda impacto de fornecedores. Então, assim, os 10% existem dentro da Embraer. O problema é que a gente. A boa notícia é que a gente conseguiu fazer monte de medidas para mitigar esses efeitos com outras reduções de custos. É por isso que a gente manteve o guidance da companhia para esse ano aqui.

Antonio Carlos Garcia: Então, assim, Rebeca, só para deixar claro, o impacto do ano aproximado e esperado é de $65 million, realizado até agora, 20%. Esse impacto é das tarifas que a gente paga exportando componentes para os Estados Unidos e não comprando peça de fornecedor. Está claro agora?

Guilherme Paiva: Entendi. Perfeito. Muito obrigada.

Antonio Carlos Garcia: Nada, disponha.

Francisco Gomes Neto: A próxima pergunta vem do chat, que é da Raquel Brandão com InvestNews. Gostaria de confirmar a questão do guidance para as margens, porque entendi que é uma perspectiva mais cautelosa em relação ao impacto de tarifas de 10%, inflação e desvalorização do dólar. Há alguma mudança? Também, gostaria de entender melhor a perspectiva do impacto dos 10% ao longo dos anos. Sei que, pelo conteúdo americano, esse impacto não é exatamente 10%. Mas quanto deve ser ao longo do segundo semestre?

Antonio Carlos Garcia: Bom dia, Antonio. A segunda pergunta primeiro, a gente acabou de responder para a Rebeca aqui, do impacto de $65 million esse ano, dos quais 20% já aconteceram até o Q2, e o resto vai acontecer no Q3 e Q4, e mantendo-se os 10% de tarifa, isso é o que impacta a companhia para os próximos anos.

Antonio Carlos Garcia: Sobre o guidance, a gente está indo muito bem, até Q2 um pouquinho acima, as margens estão confirmadas, mas assim, a gente acha que a base de custos, ou estima que a base de custos vai ser pouco pior no segundo semestre, pela questão dos 80% que falta pagar, das tarifas que ainda não caíram no nosso resultado, a inflação maior do que a gente previa, e também a desvalorização do dólar, porque nós temos custos em reais, na hora que você faz a conversão para o dólar, acaba ficando com custo maior na moeda funcional da companhia. Então, são esses dois pontos, eu diria, a gente e a Embraer sempre tenta ser consistente com os seus números do mercado, então seria pouco arriscado nesse momento, com tanta volatilidade, passar outro número para o mercado, mas a perspectiva, ela é boa, e mantendo-se as condições atuais.

Francisco Gomes Neto: Muito obrigada. A próxima pergunta vem de Jessi Nascimento com Portal Vale 360 News. Por favor, pode prosseguir.

Francisco Gomes Neto: Tudo bem, pessoal? Francisco, Antonio, bom dia. Francisco, me permita mudar pouco aí o foco do tema, que tem sido tarifas. Eu queria perguntar, diante dos anúncios de tantos investimentos lá nos Estados Unidos, até por conta dessa questão, queria saber quais tipos de investimentos podem ser feitos aqui, em São José dos Campos, Taubaté, que é o nosso foco aqui, a nossa região, ou outra cidade aqui do Vale do Paraíba. Eu aproveito também para entrar no tema da Eve e perguntar a respeito de mais detalhes, se vocês podem detalhar pouco mais a respeito sobre esse voo inaugural que deve acontecer aí, está previsto para acontecer em dezembro. Se esse voo acontece aqui também na nossa região.

Antonio Carlos Garcia: Bom, Jessi, obrigado pela pergunta. A maioria dos nossos investimentos ainda são feitos no Brasil, né? Você lembra que alguns meses atrás nós anunciamos em um evento que a Embraer ia investir 20 bilhões de reais até 2030? Então, você vê, 20 bilhões de reais, se dividir por cinco e pouco, dá quase 4 bilhões de dollars. Então, você compara esse número com o número que a gente tem falado aí dos investimentos nos Estados Unidos. A grande maioria dos investimentos ainda acontece aqui. Nós temos investimentos em Taubaté, para produzir o Eve, investimentos em Gavião Peixoto, investimentos em São José dos Campos, em várias melhorias, aumento de capacidade. Então, os investimentos estão distribuídos e a maioria deles é no Brasil, porque as nossas operações são maiores aqui no Brasil. O do Eve, a Eve é uma empresa separada, né?

Antonio Carlos Garcia: O plano é fazer esse voo do POC 2 em dezembro, mas mais detalhes sobre a Eve, eu recomendo que você obtenha na conferência com a Eve. Outros investimentos que me vêm à cabeça aqui agora, por exemplo, a parte de retorno ao trabalho, né? Nós estamos fazendo investimentos muito grandes para renovar os prédios em São José dos Campos, Eugênio de Melo, para receber o nosso pessoal de volta a partir de janeiro. Outro investimento relevante que nós estamos fazendo é na OGMA em Portugal, para fazer a manutenção dos motores GTF, vai contribuir para aumento substancial nas receitas da nossa área de serviço. Então, assim, os nossos investimentos, você tem uma ideia geral, mas você vê que os Estados Unidos fazem parte disso.

Antonio Carlos Garcia: Faz parte disso e é uma parte também relevante e nós estamos levando mais ao conhecimento das pessoas que têm o poder de decisão sobre as tarifas.

Francisco Gomes Neto: Eu sei que é cedo para falar, me permita só mais uma questão. O senhor falou aí no começo da entrevista em português que não há perspectiva de demissão esse ano, né, nas fábricas aqui no Brasil, até por conta desse ajuste que foi feito inicialmente aí nas tarifas. A gente não sabe o que vai acontecer ainda. Existe a possibilidade para o futuro, caso não haja alteração no cenário econômico mundial, de que haja a contratação de mais pessoal aqui para as plantas no Vale no Brasil?

Antonio Carlos Garcia: O Jesse, nosso plano é de crescimento para os próximos anos. Nós estamos crescendo aí uma taxa de dois dígitos cada ano, e aumentando a produção a cada ano. E esse plano, ele continua valendo, a menos que tenha uma mudança drástica no cenário econômico, como foi 50% de tarifa no maior mercado da Embraer. Mas agora nós já voltamos para patamar mais preocupante, mas mais razoável, mas que nós estamos mantendo o nosso plano de produção, a nossa receita para esse ano, e para isso nós precisamos de gente, né? E se você der uma olhada nos últimos anos, desde depois da pandemia, nós já contratamos mais de 5 mil pessoas, e a grande maioria no Brasil. A Embraer vem crescendo e o plano é de crescimento.

Antonio Carlos Garcia: Evidentemente, se houver alguma mudança muito drástica no cenário, isso vale não só para a Embraer, vale para todas as empresas, no Brasil e no mundo, né? O nosso plano agora, a nossa visão agora é positiva.

Francisco Gomes Neto: Obrigado e parabéns aí pelos resultados.

Antonio Carlos Garcia: Muito obrigado, Jesse.

Francisco Gomes Neto: Muito obrigada. Concluímos as sessões de perguntas e respostas e a conferência de resultados da Embraer. Muito obrigada pela sua participação e tenham todos bom.