Q1 2026 Embraer SA Earnings Call

Guilherme Paiva: Cast 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. My name is Gui Paiva, and I'm the Head of Investor Relations, M&A, and Venture Capital for Embraer. Welcome to Embraer's Q1 2026 Earnings Conference Call. 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 were discussed at the company's conference call earlier this week. Before we begin, a legal notice to everyone. This presentation may contain forward-looking statements which involve risks and uncertainties as detailed in the disclaimer available in the slides and in the documents filed with the Brazilian Securities Commission, CVM.

Speaker #1: As 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.

Speaker #1: Esta conferência será realizada originalmente em inglês, para ouvir a tradução em português primeiro selecione o idioma no botão "Interpretação" e segundo desative o áudio original na plataforma Zoom.

Speaker #1: My name is Gui Paiva, and I'm the Head of Investor Relations, M&A and Venture Capital for Embraer. Welcome to Embraer's first quarter 2026 earnings conference call.

Speaker #1: And don't forget to stay with us in the world.

Speaker #2: Exactly

Speaker #1: 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 were discussed at the company's conference call earlier this week.

Speaker #1: distribution.

Speaker #3: 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.

Speaker #3: It 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.

Speaker #1: Before we begin, a legal notice to everyone: this presentation may contain forward-looking statements, which involve risks and uncertainties, as detailed in the disclaimer available in the slides and in the documents filed with the Brazilian Securities Commission, CVM.

Speaker #3: Essa conferência será realizada originalmente em inglês, para ouvir a tradução em português primeiro selecione o idioma no botão interpretação, e segundo desative o áudio original na plataforma Zoom.

Speaker #1: At this time, all participants are on listen-only mode. Instructions for the Q&A session will be provided later. Participants on today's conference call are Francisco Gomes Neto, President and CEO of Embraer; Felipe Santana, Chief Financial Officer; Taís Moraes; Corporate Communications Director; and myself.

Guilherme Paiva: At this time, all participants are in listen only mode. Instructions for the Q&A session will be provided later. Participants on today's conference call are Francisco Gomes Neto, President and CEO of Embraer, Felipe Santana, Chief Financial Officer, Thais Moraes, Corporate Communications Director, and myself. This conference call consists of three parts. First, we will present the results for Q1 2026. Second, we will host a Q&A session exclusively for investors. Finally, we will hold a dedicated Q&A session for the press. It is my pleasure now to turn the conference call to our President and CEO, Francisco Gomes Neto. Please go ahead, Francisco.

Speaker #3: My name is Guy Paiva, and I'm the head of investor relations, M&A and venture capital for Embraer. Welcome to Embraer's first quarter 2026 earnings conference call.

Speaker #3: 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 were discussed at the company's conference call earlier this week.

Speaker #1: This conference call consists of three parts: first, we will present the results for the first quarter of 2026; second, we will host a Q&A session exclusively for investors; and finally, we will hold a dedicated Q&A session for the press.

Speaker #3: Before we begin, a little notice to everyone. This presentation may contain forward-looking statements, which involve risks and uncertainties, as detailed in the disclaimer available in the slides, and in the documents filed with the Brazilian Securities Commission, CVM.

Speaker #1: It is my pleasure now to turn the conference call to our President and CEO, Francisco Gomes Neto. Please go ahead, Francisco.

Speaker #2: Thank you, Gui. Good morning, and good afternoon to everyone. It is a pleasure to be here with you to share Embraer's first quarter 2026 results.

Francisco Gomes Neto: Thank you, Gui. Good morning and good afternoon to everyone. It is a pleasure to be here with you to share Embraer's Q1 2026 results. We achieved the strongest Q1 revenue in our history, the highest aircraft deliveries in a decade, and another all-time record backlog. We continue to see tangible progress in production leveling and greater stability across our assembly lines. As a side note, Q2 is up for a great start. Shout out to the UAE, who just signed a purchase agreement for 10 C-390 aircraft plus 10 options, the second biggest order after the Brazilian Air Force. This gives us confidence not only to delivery on our 2026 guidance, but also to pursue our midterm ambition of double-digit billion revenues and double-digit EBIT margins. Turning to the highlights of the quarter.

Speaker #3: At this time, all participants are on listen-only mode. Instructions for the Q&A session will be provided later. Participants on today's conference call are Francisco Gomes Neto, president and CEO of Embraer; Felipe Santana, chief financial officer; Taís Moraes, corporate communications director; and myself.

Speaker #2: We achieved the strongest first quarter revenue in our history. The highest aircraft deliveries in a decade, in another all-time record backlog. We continue to see tangible progress in production leveling, and greater stability across our assembly lines.

Speaker #3: This conference call consists of three parts. First, we will present the results for the first quarter of 2026. Second, we will host a Q&A session exclusively for investors.

Speaker #2: As a side note, Q2 is up for a great start. Shootout to the UAE, who just signed a purchase agreement for 10 C390 aircraft, plus 10 options.

Speaker #3: And finally, we will hold a dedicated Q&A session for the press. It is my pleasure now to turn the conference call to our president and CEO, Francisco Gomes Neto.

Speaker #2: The second biggest order after the Brazilian Air Force. This gives us confidence not only to deliver on our 2026 guidance, but also to pursue our mid-term ambition of double-digit billion revenues and double-digit EBIT margins.

Speaker #3: Please go ahead, Francisco.

Speaker #4: Thank you, Guy. Good morning and good afternoon to everyone. It is a pleasure to be here with you to share Embraer's first quarter 2026 results.

Speaker #4: We achieved the strongest first quarter revenue in our history, the highest aircraft deliveries in a decade, and another all-time record backlog. We continue to see tangible progress in production leveling, and greater stability across our assembly lines.

Speaker #2: Turning to the highlights of the quarter: commercial aviation. Order of 18 EO95E2 jets from Finnair, another very important customer in Europe. Executive aviation. Best first quarter of the decade.

Francisco Gomes Neto: Commercial Aviation: order of 18 E195-E2 jets from Finnair, another very important customer in Europe. Executive Aviation: best first quarter of the decade, driven by strong demand in the launch of the new Praetor 500 and 600 in the mid and super mid segments. Defense and Security: double-digit revenue growth. Momentum for KC-390 and A-29 platforms, plus a new partnership with Northrop Grumman for the US NGAS program. Service and Support: expanding recurring revenues through fresh contracts, including Airnorth for E170, E190 fleets, and Hungary for its C-390 fleet. 44 aircraft delivered last quarter: 10 Commercial Jets, 29 Executive Jets, and 5 Defense. Year-on-year growth: nearly 50% increase overall, with Commercial Aviation up 43% and Executive Aviation up 26%.

Speaker #2: Driven by strong demand, and the launch of the new Predator 500E and 600E. In the mid and super mid segments. Defense and security. Double-digit revenue growth.

Speaker #4: As a side note, Q2 is off to a great start. Shoutout to the UAE, who just signed a purchase agreement for 10 C-390 aircraft, plus 10 options.

Speaker #4: The second biggest order after the Brazilian Air Force. This gives us confidence not only to deliver on our 2026 guidance, but also to pursue our mid-term ambition of double-digit billion revenues and double-digit EBIT margins.

Speaker #2: Momentum for KC390 and A29 platforms. Plus a new partnership with Northrop Grumman for the US and gas program. Service and support. Expanding recurring revenues through fresh contracts, including Air North for EO70, EO90 fleets, and Hungary for its C390 fleet.

Speaker #4: Turning to the highlights of the quarter. Commercial aviation. Order of 18 EO95E2 jets from Finnair. Another very important customer in Europe. Executive aviation. Best first quarter of the decade.

Speaker #2: 44 aircraft delivered last quarter. 10 commercial jets, 29 executive jets, and 5 defense. Year-on-year growth. Nearly 50% increase overall, with commercial aviation up 43%, and executive aviation up 26%.

Speaker #4: Driven by strong demand in the launch of the new Praetor 500E and 600E. In the mid and super mid segments. Defense and security. Double-digit revenue growth.

Speaker #2: Commercial aviation guidance. 10 commercial jets delivered. Equal 12% of guidance midpoint. 1 point above the 5-year average. Executive aviation guidance. 29 jets delivered. Equal 18% of guidance midpoint.

Francisco Gomes Neto: Commercial Aviation guidance, 10 commercial jets delivered, equal 12% of guidance midpoint, 1 point above the 5-year average. Executive Aviation guidance, 29 jets delivered, equal 18% of guidance midpoint and 7 points above the 5-year average. Company backlog reached BRL 32 billion in the quarter, up 22% year-on-year. A new historical record for the sixth consecutive time. Commercial Aviation backlog reached BRL 15 billion, up 50% year-on-year, with an impressive 3 book-to-bill ratio over the past 12 months. Other segments backlog, Executive Aviation, Defense and Security, and Service and Support totaled BRL 17.1 billion, up mid-single digits year-on-year, with book-to-bill ratios at or slightly above 1. Approximately BRL 20 billion in options, which could expand the backlog beyond BRL 50 billion as exercised over time. Now I'd like to share a brief update on Eve's steady progress.

Speaker #4: Momentum for KC390 and A29 platforms. Plus a new partnership with Northrop Grumman for the US and gas program. Service and support. Expanding recurring revenues through fresh contracts, including Air North for EO70, EO90 fleets, and Hungary for its C390 fleet.

Speaker #2: And 7 points above the 5-year average. Company backlog reached 32 billion in the quarter, up 22% year-on-year. A new historical record for the sixth consecutive time.

Speaker #4: 44 aircraft delivered last quarter. 10 commercial jets, 29 executive jets, and 5 defense. Year-on-year growth. Nearly 50% increase overall, with commercial aviation up 43% and executive aviation up 26%.

Speaker #2: Commercial aviation backlog reached 15 billion, up 50% year-on-year. With an impressive 3. Book-to-bill ratio over the past 12 months. Other segments backlog. Executive aviation.

Speaker #2: Defense and security. And service and support totaled 17.1 billion. Up mid-single digits year-on-year, with the book-to-bill ratios at or slightly above 1. Approximately 20 billion in options, with COVID expanded backlog beyond 50 billion as exercised over time.

Speaker #4: Commercial aviation guidance. 10 commercial jets delivered. Equal 12% of guidance midpoint. 1 point above the 5-year average. Executive aviation guidance. 29 jets delivered. Equal 18% of guidance midpoint.

Speaker #4: And 7 points above the 5-year average. Company backlog reached 32 billion in the quarter. Up 22% year-on-year. A new historical record for the sixth consecutive time.

Speaker #2: Now I would like to share a brief update on EVE's steady progress. The past campaign is transitioning towards horizontal flights in the second quarter, with our prototype having already completed more than 54 flights, and a total of 2 hours and 17 minutes of flight time year-to-date.

Francisco Gomes Neto: The test campaign is transitioning towards horizontal flights in Q2, with our prototype having already completed more than 54 flights in a total of 2 hours and 17 minutes of flight time year to date. With that, I will now turn the call over to Felipe to walk you through our financial results. Felipe, over to you.

Speaker #4: Commercial aviation backlog reached 15 billion. Up 50% year-on-year. With an impressive 3. Book-to-bill ratio over the past 12 months. Order segments backlog. Executive aviation.

Speaker #2: With that, I will now turn the call over to Felipe, to walk you through our financial results. Felipe, over to you.

Speaker #4: Defense and security. And service and support totaled 17.1 billion. Up mid-single digits year-on-year, with the book-to-bill ratios at or slightly above one. Approximately 20 billion in options, with could expand backlog beyond 50 billion as exercised over time.

Speaker #1: Thank you, Francisco. Good morning, and good afternoon, everyone. Let me start with the results by business unit. Our comparisons are year-over-year, unless otherwise noted.

Felipe Santana: Thank you, Francisco. Good morning and good afternoon, everyone. Let me start with the results by business unit. Our comparisons are year over year, unless otherwise noted. Slide 9, Commercial Aviation and Executive Aviation. Starting with Commercial Aviation, revenues were up 45% to $293 million, driven by higher deliveries and pricing. Adjusted EBIT was -$28 million, with a -9.7% of margin due to client mix, logistics costs, and the absence of suppliers credits recorded last year. In Executive Aviation, revenues increased nearly 30% to $480 million, reflecting strong demand and favorable product mix. Adjusted EBIT reached $25 million, with a +6% of margin. The decline in margin was mainly due to US import tariffs, client mix, and higher selling expenses. Slide 10, Defense, Security, and Services Support.

Speaker #1: Slide 9, commercial aviation and executive aviation. Starting with commercial aviation, revenues were up 45% to 293 million dollars driven by higher deliveries and pricing.

Speaker #4: Now I would like to share a brief update on EVE's steady progress. The past campaign is transitioning towards horizontal flights in the second quarter.

Speaker #1: Adjusted EBIT was negative 28 million dollars, with a negative 9.7% of margin. Due to client mix logistics costs and the absence of suppliers' credits recorded last year.

Speaker #4: With our prototype having already completed more than 54 flights, and a total of 2 hours and 17 minutes of flight time year to date.

Speaker #1: In executive aviation, revenues increased nearly 30% to 480 million dollars, reflecting strong demand and Adjusted EBIT reached 25 million, with a positive 6% of margin.

Speaker #4: With that, I will now turn the call over to Felipe to walk you through our financial results. Felipe, over to you.

Speaker #5: Thank you, Francisco. Good morning and good afternoon, everyone. Let me start with the results by business unit. Our comparisons are year over year, unless otherwise noted.

Speaker #1: The declining margin was mainly due to US import tariffs, client mix, and higher selling expenses. Slide 10, defense security and services support. In defense security, revenues increased 63%, reaching 227 million dollars.

Speaker #5: Slide 9, commercial aviation and executive aviation. Starting with commercial aviation, revenues were up 45% to 293 million dollars driven by higher deliveries and pricing.

Felipe Santana: In Defense Security, revenues increased 63%, reaching $227 million. Adjusted EBIT was $38 million, with a +17% of margin, driven by higher KC-390 revenue recognition, increased A-29 production, and positive one-time items. In Service Support, revenues reached $490 million. Adjusted EBIT totaled $70 million, with a +14.3% of margin supported by materials and more than offsetting the impact of US import tariffs. Slide 12, Net Revenues. At a consolidated level, net revenues increased 31% to $1.4 billion in Q1, representing 17% of guidance midpoint, 2 points above the 5-year historical average. From business mix perspective, services accounted for 34% of revenues, Commercial Aviation and Executive Aviation around 20% each, and Defense 16%. Slide 13, Adjusted EBITDA and EBIT.

Speaker #1: Adjusted EBIT was 38 17% of margin. Driven recognition, increased A29 production, and positive one-time items. In service support, revenues reached 490 million dollars, adjusted EBIT totaled 70 positive 14.3% of margin, supported by materials, and more than offsetting the impact of US import tariffs.

Speaker #5: Adjusted EBIT was negative 28 million dollars with a negative 9.7% of margin. Due to client mix logistics costs and the absence of suppliers' credits recorded last year.

Speaker #5: In executive aviation, revenues increased nearly 30% to 418 million dollars, reflecting strong demand and favorable product mix. Adjusted EBIT reached 25 million, with a positive 6% of margin.

Speaker #5: The declining margin was mainly due to U.S. import tariffs, client mix, and higher selling expenses. Slide 10, defense security and services support. In defense security, revenues increased 63%, reaching $227 million.

Speaker #1: Slide 12, net revenues. At the consolidated level, net revenues increased first quarter, representing 17% of guidance 5-year historical average. From a business mix perspective, services accounted for 34% of revenues, commercial and executive aviation around 20% each, and defense 16%.

Speaker #5: Adjusted EBIT was 38 million dollars with a positive 17% of margin. Driven by higher KC390 revenue recognition, increased A29 production, and positive one-time items.

Speaker #1: Slide 13, adjusted EBITDA and EBIT. Adjusted EBITDA was 144 million, with 9.9% of margin, a small increase compared to a year ago. Now adjusted EBIT was 94 million dollars, with a 6.5% of margin, 1 point higher year-over-year, and 7.7 points above the 5-year average.

Speaker #5: In Service & Support, revenues reached $490 million. Adjusted EBIT totaled $70 million, with a positive 14.3% margin, supported by materials and more than offsetting the impact of US import tariffs.

Felipe Santana: Adjusted EBITDA was BRL 144 million with 9.9% of margin, a small increase compared to a year ago. Adjusted EBIT was $94 million with a 6.5% of margin, 1 point higher year-over-year and 7.7 points above the five-year average. Slide 14, Free Cash Flow and Investments. Adjusted free cash flow excluding IF was -$447 million in the quarter. This reflects our preparation for a higher numbers of aircraft deliveries in the coming quarters. Investments totaled $99 million during the quarter, compared to $88 million last year, including $38 million in CapEx, $36 million in intangible additions, $14 million in the Pull to the Left program, and $11 million in research. Slide 15, Adjusted Net Income. Adjusted net income was $28 million in the last quarter, a decrease of $22 million.

Speaker #5: Slide 12, net revenues. At the consolidated level, net revenues increased 31% to $1.4 billion in the first quarter, representing 17% of the guidance midpoint—2 points above the 5-year historical average.

Speaker #1: Slide 14, free cash flow and investments. Adjusted free cash flow is good in EVE, was negative 447 million dollars in the quarter. This reflects our preparation for a higher number of aircraft deliveries in the coming quarters.

Speaker #5: From a business mix perspective, services accounted for 34% of revenues, with commercial and executive aviation around 20% each, and defense at 16%. Slide 13, adjusted EBITDA and EBIT.

Speaker #1: Investments totaled 99 million dollars during the quarter, compared to 88 million last year, including 38 million in capex, 36 million in tangible additions, 14 million in the pool program, and 11 million in research.

Speaker #5: Adjusted EBITDA was $144 million, with a 9.9% margin, a small increase compared to a year ago. Now, adjusted EBIT was $94 million, with a 6.5% margin, 1 point higher year over year, and 7.7 points above the 5-year average.

Speaker #1: Slide 15, adjusted net income. Adjusted net income was 28 million in the last quarter, a decrease of 22 million dollars. The adjusted net income margin was positive 1.9%, down 2.6 points.

Felipe Santana: The adjusted net income margin was +1.9%, down 2.6 points. Earnings per ADS improved from -1.0 in 2022 to 1.9 in 2025, now stands at 1.7 on the last 12 months basis. Slide 16, Financial Position. Financial leverage stood at 0.6x that debt to EBITDA, if we exclude EV, or 0.1x higher than last year, driven by a lower cash position. Its average debt maturity is still at a comfortable 8.7 years, its average cost at 5.6% in US dollars. Shareholder remuneration. For fiscal year 2025, we distributed 25% of net income, declaring a total of BRL 524.90 million in shareholder remuneration through interest on equity and dividends.

Speaker #1: Earnings per ADS improved from negative 1.0 in 2022 to 1.9 in 2025, and now stands at 1.7 on the last 12-month basis. Slide 16, financial position.

Speaker #5: Slide 14, free cash flow and investments. Adjusted free cash flow is good in EVE, was negative $447 million in the quarter. This reflects our preparation for a higher number of aircraft deliveries in the coming quarters.

Speaker #1: Financial leverage stood at 0.6 times that debt to EBITDA if we screwed EVE, or 0.1 times higher than last year driven by a lower cash position.

Speaker #5: Investments totaled $99 million during the quarter, compared to $8 million last year, including $38 million in CAPEX, $36 million in intangible additions, $14 million in the pool program, and $11 million in research.

Speaker #1: Our average debt maturity still at a comfortable 8.7 years, and this average cost at 5.6% in US dollars. Shareholder remuneration. For fiscal year 2025, we distributed 25% of net income.

Speaker #5: Slide 15, adjusted net income. Adjusted net income was 28 million in the last quarter, a decrease of 22 million dollars. The adjusted net income margin was positive 1.9%, down 2.6 points.

Speaker #1: Declaring a total of 524.90 million Brazilian reais in shareholder remuneration, through interest on equity and dividends. This corresponds to 0.782 Brazilian cents per share and a dividend yield of approximately 0.9%.

Speaker #5: Earnings per ADS improved from negative $1.00 in 2022 to $1.90 in 2025, and now stands at $1.70 on the last 12-month basis. Slide 16, financial position.

Felipe Santana: This corresponds to BRL 0.00782 per share and a dividend yield of approximately 0.9%. With that, I will hand it back to Francisco for his final remarks. Thank you.

Speaker #1: With that, I will hand it back to Francisco for his final remarks. Thank you.

Speaker #2: Thank you, Felipe. The first quarter 2026 is strengthening our belief in Embraer's strategic positioning and execution capability. Rising deliveries sustained demand across all segments, and expanding recurring revenues are converging to fuel sustainable top-line growth.

Francisco Gomes Neto: Thank you, Felipe. The Q1 2026 strengthens our belief in Embraer's strategic positioning and execution capability. Rising deliveries, sustained demand across all segments, and expanding recurring revenues are converging to fuel sustainable top-line growth. These results reflect the discipline, the focus, and commitment of our people across the organization. That same discipline drives efficiency while we invest in new technologies to enable ambitious and profitable long-term expansion, anchored by our values, safety first and quality always, guiding everything we do. This approach positions Embraer to keep delivering value for our customers, employees, and shareholders. With that, I'd like to move on to the Q&A.

Speaker #2: These results reflect the discipline, the focus, and commitment of our people across the organization. That same discipline drives efficiency, while we invest in new technologies to enable ambitious and profitable long-term expansion.

Speaker #2: Anchored by our values, safety first, and quality knowledge, guiding everything we do. This approach positions Embraer to keep delivering value for our customers, employees, and shareholders.

Speaker #2: With that, I'd like to move on to the Q&A.

Guilherme Paiva: We will now start the question and answer session. We remind you again, 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. We request participants interested in asking questions to press the paid raise a hand button on the platform. When your name is announced, 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.

Speaker #3: We will now start the question-and-answer session. We remind you again this conference is being recorded. The broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer.

Speaker #3: 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.

Speaker #3: Esta conferência está sendo realizada originalmente em inglês para ouvir a tradução em português, pressione o botão "interpretação" da plataforma Zoom e selecione o idioma português.

Speaker #3: Após selecionar o idioma no botão "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 a hand" button on the platform.

Speaker #3: When your name is announced, 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.

Speaker #3: 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.

Guilherme Paiva: 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 Kristine Liwag with Morgan Stanley. Please go ahead. Please hold a second.

Speaker #3: The second part of the Q&A will be only for the press. The first question comes from Kristine Liwag with Morgan Stanley. Please go ahead.

Speaker #3: Please hold a second.

Speaker #4: Hi, good morning, everyone. Thank you for sharing your results this morning. You know, Francisco, Felipe, and Felipe, congratulations on your new role. You know, you've got a record backlog, so, you know, I recognizing that the business is in a position of strength.

Kristine Liwag: Hi, good morning, everyone. Thank you for sharing your results this morning. You know, Francisco, Felipe and Felipe, congratulations on your new role. You know, you've got a record backlog, you know, Recognizing that the business is in a position of strength, can you talk about how Iran and oil prices are affecting customers' decision regarding their fleet? Is this a period where they're leaning on and really evaluating new airplanes? Are they looking at continued life extensions of the existing aircraft that they have? Any color that you have to share about how they're looking at this dynamic would be helpful. Thank you.

Speaker #4: Can you talk about how Iran and oil prices are affecting customers' decision regarding their fleet? Is this a period where they're leaning on and really evaluating new airplanes?

Speaker #4: Are they looking at continued life extensions of the existing aircraft that they have? Any color that you have to share about how they're looking at this dynamic would be helpful.

Speaker #4: Thank you.

Speaker #5: Hi, Kristine. Thank you very much for your question. You know, we are closely monitoring the situation. So rising cost, of course, may impact airlines' fleet expansion and renewal plans.

Francisco Gomes Neto: Hi, Kristine. Thank you very much for your question. You know, we are closely monitoring the situation on the war. Rising costs, of course, may impact airlines' fleet expansion and renewal plans. However, at this time, there is no direct impact on Embraer. We don't see any diminishing interest in new campaigns or any movements to delay deliveries.

Speaker #5: However, at this time, there is no direct impact on Embraer. So we don't see any dismission interest in new campaigns or any movements to delay deliveries.

Speaker #4: Great. Super helpful. And if I could follow up on another question, you know, we've seen that, you know, the E2 weighs less than the A220.

Kristine Liwag: Great. Super helpful. If I could follow up on another question. You know, we've seen that, you know, the E2 weighs less than the A220. I think the weight difference is something like 8,000 kilos. In this environment where airlines are reminded again that, you know, oil is a variable that they can't control and can vary widely, are they factoring this in about the decision when they're evaluating the A220 and the E2? Is this environment incrementally better for the E2 from what you've seen? Are there signs of that or are we still in early stages for those kinds of campaigns?

Speaker #4: I think the weight difference is something like 8,000 kilos. In this environment where airlines are reminded again that, you know, oil is a variable that they can't control and can vary widely, are they factoring this in about the decision when they're evaluating the A220 and the E2?

Speaker #4: And is this environment incrementally better for the E2 from what you've seen? Are there signs of that, or are we still in early stages for those kinds of campaigns?

Speaker #5: No, absolutely. We see, you know, we are now very well positioned with E2 in this environment because, you know, we have the most efficient aircraft in that segment of a small aerobody.

Francisco Gomes Neto: No, absolutely. We see, you know, we are now very well-positioned with the E2 in this environment because, you know, we have the most efficient aircraft in that segment of a small narrow body, and we see more and more airlines showing interest in this in our product. Again, we are, I say, cautiously optimistic about the new campaigns with the E2s.

Speaker #5: And we see more and more airlines showing interest in this in our product. So again, we are cautiously optimistic about the new campaigns with the E2s.

Speaker #4: Great. Thank you.

Kristine Liwag: Great. Thank you.

Speaker #5: Thank you.

Francisco Gomes Neto: Thank you.

Speaker #3: The next question comes from Marcelo Motta with JPMorgan. Please go ahead.

Guilherme Paiva: The next question comes from Marcelo Motta with J.P. Morgan. Please go ahead.

Speaker #6: Hey. Hi, everyone. I'm Francisco Felipe. Congrats for the new position. Well-deserved. It's a question regarding the defense one-off, the 25 million dollars, if you guys could explain us, you know, a little bit more details on, you know, what it means, you know, and what it happened now.

Marcelo Motta: Hey. Hi, everyone. Francisco, Felipe, congrats for the new position. Well deserved. It's a question regarding the defense one-off, the $25 million. If you guys could explain us, you know, a little bit more details on, you know, what it means, you know, and what it happen now. Any information that can help us to, you know, to figure out the $25 million will be very helpful. Thank you.

Speaker #6: So any information that can help us to, you know, to figure out that 25 million will be very helpful. Thank you.

Speaker #2: Hi, Marcelo. Gui Paiva here in Embraer. Thanks for the question. As you know, in defense, we have a lot of we are counting on the percentage of completion methodology.

Guilherme Paiva: Hi, Marcelo. Guilherme Paiva here in Embraer. Thanks for the question. As you know, in defense we are counting on the percentage of completion methodology. We did have an amendment to a contract with a client in the quarter, and that amendment was calculated retroactively to the start of the contract, and therefore, we booked that benefit fully in the quarter. That explains the $25 million for the division.

Speaker #2: And we did have an amendment to a contract with a client in the quarter. And that amendment was calculated retroactively to the start of the contract.

Speaker #2: And therefore, we booked that benefit fully in the quarter. That explains the 25 million for the division.

Speaker #6: Perfect. Super clear. Thank you, Gui.

Marcelo Motta: Perfect. Super clear. Thank you, Gui.

Speaker #5: Financial leverage stood at 0.6 times that debt to EBITDA if we screwed EVE, or 0.1 times higher than last year driven by a lower cash position.

Speaker #3: The next question comes from Luis Perfiero with Wolf Research. Please go ahead.

Guilherme Paiva: The next question comes from Louis Raffetto with Wolfe Research. Please go ahead.

Speaker #5: Our average debt to maturity still at a comfortable 8.7 years, and this average cost at 5.6% in US dollars. Shareholder remuneration. For fiscal year 2025, we distributed 25% of net income.

Speaker #2: Good morning.

Louis Raffetto: Good morning.

Speaker #5: Good morning.

Francisco Gomes Neto: Good morning.

Speaker #6: Good morning, Luis.

Guilherme Paiva: Good morning, Louis.

Speaker #2: Hey, Gui. Maybe just to follow up on that, was that something that would have been expected for this to happen at this year, just timing uncertain?

Louis Raffetto: Hey, Gui, maybe just to follow up on that. Was that something that would have been expected for this to happen at this year, just timing uncertain, that adjustment in defense, or would that be incremental to the full year?

Speaker #5: Declaring a total of R$524.90 million in shareholder remuneration, through interest on equity and dividends. This corresponds to R$0.782 per share and a dividend yield of approximately 0.9%.

Speaker #2: That adjustment in defense? Or would that be incremental to the full year?

Guilherme Paiva: No, that was something that was expected by us. The timing was a little bit ahead that we had booked and expected, but we It was forecasted for the year.

Speaker #5: That was something that was expected by us. The timing was a little bit ahead that we had booked. I expected. But it was forecasted for the year.

Speaker #2: Okay. Great. Thank you. And then so just on the share repo, you've done two quarters in a row now. Is this something we should continue to expect to see?

Louis Raffetto: Okay, great. Thank you. Just on the share replay, you've done 2 quarters in a row now. Is this something we should continue to expect to see?

Speaker #5: With that, I will hand it back to Francisco for his final remarks. Thank you.

Speaker #6: Thank you, Felipe. The first quarter 2026 is strengthening our belief in Embraer's strategic positioning and execution capability. Rising deliveries, sustained demand across all segments, and expanding recurring revenues are converging to fuel sustainable top-line growth.

Speaker #5: Yeah. We're taking a conservative approach because of the current high uncertainties. And we prefer to wait for additional visibility before making any change to our outlook.

Guilherme Paiva: Yeah. We're taking a conservative approach because of the current and high uncertainties, and we prefer to wait for additional visibility.

Felipe Santana: Before we make any change to our outlook, but we are very comfortable on the midpoint of our guidance.

Speaker #5: But we are very comfortable on the midpoint of our guidance.

Speaker #2: Thank you very much.

Operator: Thank you very much. The next question comes from Ron Epstein with Bank of America. Please go ahead.

Speaker #6: These results reflect the discipline, focus, and commitment of our people across the organization. That same discipline drives efficiency, while we invest in new technologies to enable ambitious and profitable long-term expansion.

Speaker #3: The next question comes from Ron Epstein with Bank of America. Please go ahead.

Speaker #6: Yeah. Hey, good morning, guys. The in your prepared remarks, you mentioned about investments in the future. Could you walk through what your thinking about those investments and could you discuss a little bit where you're investing for the future?

Ron Epstein: Yeah. Hey, good morning, guys. In your prepared remarks, you mentioned about investments in the future. Could you walk through what you're thinking about those investments, and could you discuss a little bit where you're investing for the future?

Speaker #6: Encouraged by our values, safety first, and quality always, guiding everything we do. This approach positions Embraer to keep delivering value for our customers, employees, and shareholders.

Speaker #6: With that, I'd like to move on to the Q&A.

Speaker #2: Hi, Ron. Felipe here. Thank you for the question. So as we mentioned, we keep investing on our increase of production in Melbourne facility. To support the increase of the backlog on those activation, also, we continue to invest to increase our footprint, especially on the MRO in Texas.

Felipe Santana: Hi, Ron. Felipe here. Thank you for the question. As we mentioned, we keep investing on our increase of production in Melbourne facility to support the increase of the backlog on executive aviation. Also, we continue to invest to increase our footprint, especially on the MRO in Texas that we've been investing. Investing in OGMA to increase the production also on the KC and also on the GTF program. This is the focus of the investment of the company currently.

Speaker #1: We will now start the question-and-answer session. We remind you again this conference is being recorded. The broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer.

Speaker #2: There will be investing and also be investing in OGMA to increase the production also on the KC and also on the GTF program. So this is the focus of the investment of the company currently.

Speaker #1: 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.

Speaker #5: And maybe if I can complement you, Felipe, we are also investing in new technologies around. I mean, to be prepared for, you know, a new cycle of products of Embraer in the next future.

Francisco Gomes Neto: Maybe if I can complement you, Felipe. We are also investing in new technologies, Ron. I mean, to be prepared for, you know, a new cycle of products of Embraer in the next future.

Speaker #1: Esta conferência está sendo realizada originalmente em inglês, para ouvir a tradução em português, pressione o botão "Interpretação" da plataforma Zoom e selecione o idioma português.

Speaker #6: Got it. Got it. And then what do you all see in your own supply chain today? I know engines have been a gating factor with your ability to deliver aircraft at a quicker rate.

Ron Epstein: Got it. What are you all seeing in your own supply chain today? I know engines have been a gating factor with your ability to deliver aircraft at a quicker rate. How is the engine supply chain going, and are there other areas where you're seeing challenges in the supply chain? Like I know in the executive aviation industry, things like, you know, just windows have been hard to get a hold of. How's that going?

Speaker #1: Após selecionar o idioma no botão '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 a hand' button on the platform.

Speaker #6: How is the engine supply chain going? And are there other areas where you're seeing challenges in the supply chain? I know in the executive aviation industry, things like just windows have been hard to get a hold of.

Speaker #1: When your name is announced, 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.

Speaker #6: How's that going?

Speaker #1: 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.

Speaker #5: Well, thanks for the question, Ron. I mean, we still have some pacers that we are working within very closely. That, you know, it's pushing our deliveries further to the, you know, the next quarters.

Francisco Gomes Neto: Oh, thanks for the question, Ron. I mean, we still have some pacers that we are working with them very closely, that I know is pushing our deliveries further to the next quarters. We have seen a lot of improvements. You can see by the deliveries we made in the Q1. I mean, 47% more than we did in Q1 last year. This is, this shows how the situation is improving. Regarding engines specifically, I mean, E2 we have the situation under control in terms of deliveries. E1 improving as well. We don't see any risk for us, for our guidance this year in terms of production and deliveries.

Speaker #1: The second part of the Q&A will be only for the press. The first question comes from Christine Liuag with Morgan Stanley. Please go ahead.

Speaker #5: But we have seen a lot of improvements. So you can see by the deliveries we made in the Q1, I mean, 47% more than we did in Q1 last year.

Speaker #5: And this is shows how the situation is improving. Regarding engines specifically, I mean, E2, we have the situation under control. In terms of deliveries, in E1, improving.

Speaker #1: Please hold a second.

Speaker #7: Hi, good morning, everyone. Thank you for sharing your results this morning. Francisco Felipe and Felipe, congratulations on your new role. You've got a record backlog, so I recognize that the business is in a position of strength.

Speaker #5: As well. So we don't see any risk for us, for our guidance, this year in terms of production and deliveries. And we are working closely with the suppliers to improve the delivery cadence that we can level our production.

Francisco Gomes Neto: We are working closely with the suppliers to improve the delivery cadence that we can level our production. You know, I mean, improving the, in this year, but achieving a highest level of leveling production in 2027.

Speaker #7: Can you talk about how Iran and oil prices are affecting customers' decision regarding their fleet? Is this a period where they're leaning on and really evaluating new airplanes?

Speaker #5: You know, I mean, improving the this year, but achieving a highest level of leveling production in 2027.

Speaker #7: Are they looking at continued life extensions of the existing aircraft that they have? Any color that you have to share about how they're looking at this dynamic would be helpful.

Speaker #6: Got it. Got it. Got it. And then can you speak to a little bit of any how do I say it? Ongoing campaigns in regions of the world?

Ron Epstein: Got it. Got it. Got it. Then can you speak to a little bit of any, how do I say it? Ongoing campaigns in regions of the world. Are there any regions of the world that are hotter today than others in terms of campaigns for E1 or E2?

Speaker #6: Are there any regions of the world that are hotter today than others in terms of campaigns for E1 or E2?

Speaker #7: Thank you.

Speaker #8: Hi, Christine. Thank you very much for your question. We are closely monitoring the situation on the war. So rising cost, of course, may impact airlines' fleet expansion and renewal plans.

Speaker #5: The campaigns in almost all the regions. For eJets, we normally do not disclose the campaigns. But we are optimistic that we will have a good year as well.

Francisco Gomes Neto: Campaigns in almost all the regions for E-Jets. We normally do not disclose the campaigns, but we are optimistic that we will have a good year as well. Not as good as last year, because last year we had amazing sales of E-Jets, but this year is going to be good as well.

Speaker #8: However, at this time, there is no direct impact on Embraer. So we don't see any dismission interest in new campaigns or any movements to delay deliveries.

Speaker #5: Not as good as last year because last year we had an amazing sales of eJets. But this year is going to be good as well.

Speaker #6: Got it. Thank you.

Ron Epstein: Got it. Thank you.

Speaker #1: Great. Super helpful. And if I could follow up on another question, we've seen that the E2 weighs less than the A220. I think the weight difference is something like 8,000 kilos.

Speaker #5: You are welcome, Ron.

Francisco Gomes Neto: You are welcome, Ron.

Speaker #3: The next question comes from Andre Ferreira with Bradesco BPI. Please go ahead.

Operator: The next question comes from Andre Ferreira with Bradesco BBI. Please go ahead.

Speaker #1: In this environment, where airlines are reminded again that oil is a variable they can't control and could vary widely, are they factoring this in when they're evaluating the A220 and the E2?

Speaker #7: Hi. Good morning. Thank you for taking my question. And I wanted to congratulate Felipe on the new job. Just going back to the one of the items this quarter.

Andre Ferreira: Hi. Good morning. Thank you for taking my question, and I wanted to congratulate Felipe on the new job. Just going back to the one-off items this quarter. Tariffs are clear. Impacts on defense, I think you covered in a previous question. But on the commercial side, maybe not really a one-off, but we're seeing higher logistics costs. Could you give more details? Like, did it accelerate production rates or deliveries or was it something else? If you could give us a color of how much impact that was, on margins or in USD. Thank you.

Speaker #1: And is this environment incrementally better for the E2 from what you've seen? Are there signs of that, or are we still in early stages for those kinds of campaigns?

Speaker #7: So tariffs are clear. Impact on defense I think you covered in a previous question. But on the commercial side, maybe not really a one-off, but we're seeing higher logistics costs.

Speaker #8: No, absolutely. We see now we are now very well positioned with E2 in this environment because we have the most efficient aircraft in that segment of a small narrowbody.

Speaker #7: Could you give more details? Did it accelerate production rates or deliveries? Or was it something else? And if you could give us a color of how much impact that was on margins or in USD.

Speaker #8: And we see more and more airlines showing interest in this, in our product. So, again, we are cautiously optimistic about the new campaigns with the E2s.

Speaker #7: Thank you.

Speaker #2: Well, Andre. Hi, Andre. Felipe here. Thank you for your question. We do had this logistics costs. And we believe there was much more one item during the first quarter.

Felipe Santana: Well, Andre. Hi, Andre. Felipe here. Thank you for your question. We do have these logistics costs, and we believe there was much more than one item during Q1. We don't foresee that on the coming quarters. This basically was around $7 million of impact on Q1.

Speaker #1: Great. Thank you.

Speaker #2: We don't foresee that on the coming quarters. And this basically was around $7 million of impact on the first quarter.

Speaker #8: Thank you.

Speaker #1: The next question comes from Marcelo Motta with JPMorgan. Please go ahead.

Speaker #9: Hey. Hi, everyone. I'm Francisco Felipe. Congrats for the new position. Well-deserved. It's a question regarding the defense one-off, the 25 million dollars, if you guys could explain us a little bit more details on what it means, what it happened now.

Speaker #7: Great. Thank you. And was it related to anything specific or different from the previous quarters?

Andre Ferreira: Okay. Thank you. Was it related to anything specific or different from the previous quarters?

Speaker #2: No. No. Nothing different.

Felipe Santana: No. No, nothing different.

Speaker #7: Okay. Thank you. Have a good day.

Andre Ferreira: Okay. Thank you. Have a good day.

Speaker #2: Thank you.

Job uh just uh going back to the, to the, to the to the 1 of items. This quarter. So character clear impact on the fence. I think you covered in a previous question, but on the commercial side, maybe not really a 1 up, but we're seeing High higher Logistics cost.

Felipe Santana: Thank you.

Speaker #5: You too.

Francisco Gomes Neto: You too.

Speaker #9: So any information that can help us to figure out that $25 million will be very helpful. Thank you.

Speaker #3: The next question comes from Lucas Marquiori with BTG. Please go ahead.

Operator: The next question comes from Lucas Marquiori with BTG. Please go ahead.

Speaker #10: Hi, Marcelo. Guilherme Paiva here at Embraer. Thanks for the question. As you know, in Defense, we have a lot of—we are counting on the percentage-of-completion methodology.

Speaker #8: Hey, guys. Morning. And welcome, Felipe, to the group. And just one question on defense and regarding these latest contracts you guys signed with the Emirates.

Lucas Marquiori: Hey, guys. Morning, and welcome Felipe to the group. Just one question on defense and regarding this latest contract you guys signed with-

Uh, could you give more details? Like did it accelerate production rates or deliveries or or was it something else? And, uh, if you could give us a caller of how much impact that was uh, on margins or in USD, thank you.

Speaker #10: And we did have an amendment to a contract with a client in the quarter. And that amendment was calculated, retracted to the start of the contract.

Lucas Marquiori: The Emirates. Just wanted to know if that is kind of a building platform for that client to maybe distribute more of your products throughout the region? You know, like, I mean, if there's any kind of a volume upside on top of that signed contract already, or how do you guys see this kind of opportunity in the Middle East? Second question on margin base though, I mean, how good it was the delivered margin versus your forecast, right? I mean, in terms of deliveries, in terms of volumes, you guys had a stronger quarter, but even looking on a year-over-year comparison, your margins were slightly weaker, right?

Speaker #8: I just wanted to know if that is kind of a building platform for that client to maybe distribute more of your products throughout the region, you know, like, I mean, if there's any kind of a volume upside on top of that signed contract already?

Speaker #10: And therefore, we booked that benefit fully in the quarter. That explains the 25 million for the division.

Speaker #8: Or how do you guys see this kind of opportunity in the Middle East? And second question on margin pace, though. I mean, how did it was the delivered margin versus your forecast, right?

Orlando. Hi Andrea. Philip here. Thank you for your question. Um, we do have this Logistics costs and we believe it was much more 1 item, uh, during the first quarter. We don't foresee that on the coming quarters and this basically was around 7 million dollars of impact on the first quarter.

Speaker #9: Perfect. Super clear. Thank you, Guy.

Speaker #1: The next question comes from Luis Perfiero with Wolf Research. Please go ahead.

Okay, thank you. Uh, and was it related to anything specific or different from the previous quarters?

No, no, no. Nothing different.

Speaker #8: Because I mean, in terms of deliveries and in terms of volumes, you guys had a stronger quarter. But even looking on a year-over-year comparison, your margins were slightly weaker, right?

Okay. Thank you. Have a good day.

Speaker #10: Good morning.

Thank you, you too.

Speaker #8: Good morning.

Speaker #9: Good morning, Luis.

Speaker #10: Hey, Guy. Maybe just to follow up on that, was that something that would have been expected for this to happen at this year, just timing uncertain?

Lucas Marquiori: I know there's climates, there's logistics costs, there are all of the sorts of the effects that you guys already mentioned, but just wanted to know if that's already included on your curve for expected margin improvement throughout the year, you know? Thanks, guys, for the questions.

Speaker #8: I know there's climate mix. There's logistics costs. There are all of these sorts of the effects that you guys already mentioned. But just wanted to know if that's already on included on your curve for expected margin improvement throughout the year, you know?

The next question comes from Lucas Maruri with BTG. Please go ahead.

Speaker #10: That adjustment in defense? Or would that be incremental to the full year?

Speaker #8: That was something that was expected by us. The timing was a little bit ahead that we had booked. I expected. But it was forecasted for the year.

Speaker #8: Thanks, guys, for the questions.

Speaker #5: Right. Lucas, good morning. Francisco here. I will start with the question number one. And then Felipe will help you with Gui or Felipe will help you with the question number two.

Francisco Gomes Neto: Right. Lucas, good morning. Francisco here. I'll start with the question number 1, then Felipe will help you with Gui or Felipe will help you with the question number 2. Well, I don't need to tell you how happy we are with this new order in the Middle East, the first one in the region for the KC-390. Very important and relevant order. I mean, 10 aircraft firms and 10 options. Yes, this open opportunity for us to extend new deals with the neighborhood in the region, right? I mean, it's, it shows, it's happened in Europe that, you know, this aircraft really is the best in class in that segment.

Speaker #10: Okay, great. Thank you. And then, just on the share repo, you've done two quarters in a row now. Is this something we should continue to expect to see?

Speaker #5: Well, I don't need to tell you how happy we are. With this new order in the Middle East, the first one in the region for the KC-290, very important and relevant order.

Speaker #8: Yeah. We're taking a conservative approach because of the current high uncertainties. And we prefer to wait for additional visibility before we make any change to our outlook.

Speaker #5: I mean, 10 aircraft firms and 10 options NAS. This open opportunity for us to extend new deals with the neighborhood in the region, right?

Speaker #8: But we are very comfortable on the midpoint of our guidance.

Speaker #10: Thank you very much.

Speaker #5: I mean, it's shows has happened in Europe. That, you know, these aircraft really is the best in class in that segment. And going to the Middle East, yes, we see an opportunity for new sales in the region.

Speaker #1: The next question comes from Ron Epstein with Bank of America. Please go ahead.

Francisco Gomes Neto: Going to the Middle East, yes, we see an opportunity for new sales in the region with the KC, and these 10 options can help us to do that, you know, the same thing we have with Portugal and we have with the Netherlands. Felipe, second Guilherme, I think you will take care of the second one, right?

Speaker #11: Yeah. Hey, good morning, guys. In your prepared remarks, you mentioned investments in the future. Could you walk through what you're thinking about those investments, and could you discuss a little bit where you're investing for the future?

Hey guys morning and uh welcome Philippe to the group and um uh just just 1 question on defense and regarding these latest. Uh, contrary you guys signed with the Emirates, just wanted to know if that is a kind of a, a, a a building platform for for that client to maybe distribute more of your, of your products throughout the region. You know, like I mean, if there's any kind of a volume upside on top of that, signed signed contract already, or how do you guys see this kind of opportunity in the Middle East? And, uh, second question, on on, on, on on, on, on, on, on, on margin based though? I mean, um, how how how how, how how how did he was? The the delivered margin versus your forecast, right? Because I mean in terms of the levers and in terms of volumes you you guys had a stronger quarter but even looking on a year-over-year comparison your margins were slightly weaker, right? Uh I know there's climax, there's Logistics costs are all of the sorts of the uh effects that you guys already mentioned, but just wanted to know if that's already on, included on your curve for expected Market.

Speaker #5: With the KC and these 10 options, can help us to do that, you know, the same thing we have with Portugal and we have with the Netherlands.

Targeting Improvement throughout the year. You know, thanks guys for the questions.

Speaker #5: Now, Felipe, second Gui. I think you will take care of the second one, right?

Speaker #2: Yes. Thanks for the question, Lucas. Good to hear you. So we know we operate a complex business. So obviously, there are fluctuations that happen quarter to quarter.

Guilherme Paiva: Yes. Thanks for the question, Lucas. Good to hear you. We know we operate a complex business, so obviously there are fluctuations that happen quarter to quarter. I think most importantly, if we're looking forward, we feel very confident and comfortable with the guidance that we put out with 9% of EBIT margin at the midpoint of EBIT. If we continue to see the status quo of tariffs not being implemented on Brazil and on us, we estimate in the last quarter that we could see an additional 60 basis points for the year.

Speaker #10: Hi, Ron. Felipe here. Thank you for the question. So as we mentioned, we keep investing on our increase of production in Melbourne facility. To support the increase of the backlog on those activation, also, we continue to invest to increase our footprint, especially on the MRO in Texas.

Speaker #2: I think most importantly, if you're looking forward, we feel very confident and comfortable with the guidance that we put out. With 9% of the margin at the midpoint of it.

Right, Lucas, good morning, Francisco here. I start with a question number 1 and then see if it will help you with ghee or for you to help with the question number 2. Well, I don't need to tell you how happy we are with this new order in the Middle East, the first 1 in the region for the case City, 19, very important and relevant to order. I mean 10

Speaker #2: And if we continue to see the status quo of Brazil and on us, we estimate in the last quarter that we could see an additional 60 basis for the year.

Speaker #10: There will be investing. And also, it will be investing in OGMA to increase the production also on the KC and also on the GTF program.

10, aircraft firms, 10 options. And yes this uh open opportunity for us to extend the new deals with uh with the neighborhood in the region, right? I mean it's a

Speaker #10: So, this is the focus of the investment of the company currently.

Speaker #8: And maybe if I can complement you, Felipe, we are also investing in new technologies around. I mean, to be prepared for a new cycle of products of Embraer in the next future.

Speaker #8: Thank you, guys. Have a good day.

Lucas Marquiori: Thank you, guys. Have a good day.

Speaker #5: You too, Lucas.

Francisco Gomes Neto: You too, Lucas.

Speaker #3: The next question comes from Noah Poponak with Goldman Sachs. Please go ahead.

Operator: The next question comes from Noah Poponak with Goldman Sachs. Please go ahead.

It's a it's a it shows has happened. Has got in Europe that you know this aircraft really is the best in class in that segment and going to the Middle East. Yes. We see an opportunity for new sales in the region with the Casey and the 10 options can help us uh to do that. You know, the same thing we have with Portugal and they have a with with the Netherlands

Speaker #11: Got it. Got it. And then what do you all see in your own supply chain today? I know engines have been a gating factor with your ability to deliver aircraft at a quicker rate.

Speaker #8: Hey, good morning, everyone.

Noah Poponak: Hey, good morning, everyone.

Speaker #7: Good morning.

Francisco Gomes Neto: Morning.

Speaker #8: Maybe on the margin question and topic, just given some moving pieces and as Gui just alluded to, the quarterly volatility that can happen, if we take the full year total company margin guidance that you have, is it possible to just speak to for full year 2026 versus 2025, what you see by segment?

Noah Poponak: Maybe on the margin question and topic, just given, you know, some moving pieces and as Gui just alluded to, the quarterly volatility that can happen. If we take the full year total company margin guidance that you have, is it possible to just speak to, for full year 2026 versus 2025, what you see by segment? Which segments are higher, which are lower directionally?

Speaker #11: How is the engine supply chain going? And are there other areas where you're seeing challenges in the supply chain? I know in the executive aviation industry, things like just windows have been hard to get a hold of.

How Philippon second RV, I think you will take care of the second one, right? Yes, thanks for the question, Lucas, good to hear you. Um, so we know we operate a complex business. So obviously, there are fluctuations that happen quarter to quarter. Um, I think, most importantly, if you're looking forward, we, uh, feel very confident and comfortable with the guidance that we put out, uh, with 9% out of the margin at the midpoint of it.

Speaker #11: How's that going?

Speaker #8: Well, thanks for the question, Ron. I mean, we still have some pacers that we are working within very closely. That is pushing our deliveries further to the next quarters.

Speaker #8: Which segments are higher? Which are lower? Directionally?

And if we continue to see the status quo of uh tariffs um now being implemented on Brazil and on us, uh, we we estimated in the last quarter that we could see an additional 60 basis for the year.

Felipe Santana: Thank you, Noah. Felipe here. What we foresee when we compare, right, by business unit is the on Commercial, probably going to see stable compared to last year. On Defense, an improvement going up. Executive as well, going up, and Service Support as well. Most of the growth that we are going to see will be pushed by these three business units, and Commercial much more steady.

Speaker #2: Thank you, Noah. Felipe here. What we foresee when we compare, right, by business units at the on commercial, probably going to see stable compared to last year.

Thank you guys. Have a good day.

You too, Lucas.

Speaker #8: But we have seen a lot of improvements. So you can see by the deliveries we made in the Q1. I mean, 47% more than we did in Q1 last year.

Speaker #2: On defense, an improvement going up. Executive as well going up. And seven support as well. So most of the growth that we're going to see will be pushed by these three business units and commercial much more steady.

The next question comes from, Noah popon with Goldman Sachs. Please go ahead.

Hey, good morning, everyone.

Morning.

Speaker #8: And this shows how the situation is improving. Regarding engines specifically—I mean E2—we have the situation under control. In terms of deliveries, E1 is improving as well.

Speaker #8: Okay. Great. That's helpful. And then as you've discussed, investing in output for executive where does that get you on possible capable annual deliveries? And what do you think where do you want to take supply annual deliveries relative to the effort to grow and give customers jets, but also keep a backlog and keep supply-demand tight?

Noah Poponak: Okay, great. That's helpful. As you've discussed investing in output for executive, where does that get you on, you know, possible capable annual deliveries? What do you think where do you want to take supply annual deliveries relative to the effort to, you know, grow and give customers jets, but also keep a backlog and keep supply demand tight?

Maybe on the margin question and topic. Um, just given you know, some, some moving pieces and

As you just alluded to the quarterly, volatility that can happen if we take the full year.

Speaker #8: So we don't see any risk for us, for our guidance, this year in terms of production and deliveries. And we are working closely with the suppliers to improve the delivery cadence that we can level our production I mean, improving the this year.

Is it possible to just speak to for full year 2026 versus 2025? What you see by segment, which segments are higher, which are lower directionally?

Speaker #8: But achieving a highest.

Speaker #5: No, no. This is really a great question. And this is a combination of our supply chain capabilities and our own production capabilities. So we are working in both fronts.

Francisco Gomes Neto: No, Noah, this is a really a great question. This is a, you know, a combination of our supply chain capabilities and our own production capabilities. What we are working on both fronts, we are investing in expanding our sites in Brazil, Portugal, and the United States over the past 2 years. You know, also optimizing the utilization of our assets, producing more aircraft in the same area. In parallel, we have been working very closely with our key suppliers to make sure that they supply the parts we need to support our growth. We are growing year after year. We are growing this year. We are planning to grow in the following years.

Speaker #5: So we are investing in expanding our sites in Brazil, Portugal, and the United States over the past two years. And also optimizing our utilization of our assets producing more aircraft in the same area.

Uh, thank you. Noah Phillips here. Uh, what we foresee when we compare right by business unit is that, uh, on Commercial, probably going to see, uh, stable compared to last year. On Defense, an improvement going up, as active as well, going up and S&S support as well. So, most of the growth that we're going to see will be pushed by these three business units, and Commercial much more steady.

Okay, great. That's helpful.

Um, and then, as you've discussed, investing in output for executive—

um,

Speaker #5: So in parallel, we have been working very closely with our key suppliers to make sure that they supply the parts we need to support our growth.

where does that get you on? You know, possible capable annual deliveries?

and and what do you think, where do you want to take Supply annual deliveries relative to the effort to

Speaker #5: We have we are growing year after year. We are growing this year. We are planning to grow in the following years. So we are saying we are saying that by the end of the decade, we expect to reach production of 120 commercial jets.

Francisco Gomes Neto: We are seeing that by the end of the decade, we expect to reach production of 120 commercial jets and 200 executive jets and 10 KC-390. This is the plan we have been working on. Also very important, we want to deliver all the aircraft on time to our customers, and we are improving that direction as well.

You know, grow and give customers jets, but also keep a backlog and keep supply-demand type.

Speaker #5: And 200 executive jets. And 10 KC-290. This is the plan. We have been working on. And also very important, we want to deliver all the aircraft on time to our customers.

Speaker #5: And we are improving that direction as well.

Speaker #8: Okay. And then maybe just the last one on defense, revenue, and growth. Given the growth rate in the quarter, obviously, it's an easier absolute dollar compare in the year-ago quarter.

No, no, this is a really a great question. And this is a, you know, a combination of our supply chain capabilities in our own production capabilities. So we are working in in both on both fronts. So we are we are investing in expanding our sites in Brazil, Portugal and the United States over the past 2 years.

Noah Poponak: Okay. Maybe just the last one on defense revenue and growth.

Noah Poponak: Given the growth rate in the quarter, obviously it's an easier absolute dollar compare in the year ago quarter. I guess what's within the total company full year 2026 revenue guidance, what's assumed for defense growth or a range of dollars? As you execute on that program growth beyond this year, how can we think about or how can you frame where defense revenues can make it to, you know, closer to the end of the decade?

Speaker #8: But I guess what's within the total company full year 2026 revenue guidance, what's assumed for defense growth or a range of dollars? And then as you execute on that program growth beyond this year, how can we think about or how can you frame where defense revenues can make it to closer to the end of the decade?

Felipe Santana: Felipe here, Noah. Thank you. On the defense, right? We don't give specific numbers, but the way that we see is that around 6, probably 6 aircraft this year, KC and 12 A29. That's the way that we see, and we see this pace of deliveries growing, especially on KC year per year, up to 10 aircraft in the end of the decade.

Speaker #2: Felipe here on Noah. Thank you. On defense, right, we don't give specific numbers. But the way that we see is that around year KCs.

Uh, you know and uh and and also optimizing our the utilization of our assets, producing more aircraft in the same in the same area. So in parallel we have been working very closely with our uh key suppliers to make sure that they Supply the parts we need to support our growth. We have we are growing here after year, we are growing this year, we are going to grow in the in the form of years. So when I'm saying, we are saying that by the end of the decade, we expect to to reach production of 120, commercial Jets and 200 is active Jets and 10 KC through 90. This is the plan we have been working

Working working on and also very important that we want to deliver all the aircraft on, time to our customers, and we are improving that direction as well.

Speaker #2: And 12 A-29. That's the way that we see. And we see this pace of deliveries growing, especially on KC year per year, up to 10 aircraft in the end of the decade.

Okay. Um, and then maybe just the last 1 on on defense revenue and growth. Um,

Speaker #5: And Felipe, we follow only to complement this answer. Noah, we have been working in a new initiative. We call Pull to the Left, which aims to anticipate the revenues and higher profitability.

Francisco Gomes Neto: Felipe, if you allow me to complement this answer. Noah, we have been working in a new initiative we call Pull to the Left, which aim to anticipate the revenues and higher profitability. Then we are focusing on enhancing our execution process, accelerating revenue, and improving profitability at a faster pace. As things are now coming to a more stable situation, we believe there is an opportunity for us to accelerate our efficiency programs within the company.

Speaker #5: So and then we are focusing on enhancing our execution process, accelerating revenue, and improving profitability at a faster pace. So things are now coming to a more stable situation.

Given given the growth rate in the quarter. Obviously, it's a, it's a, an easier, uh, absolute dollar compared, and the year ago quarter. But I guess what? What's within the total company full year 2026 Revenue guidance, what's assumed for defense growth or a range of dollars. And then, as you as you execute on that program, growth Beyond this year,

How how can we think about or how can you frame, where defense revenues can make it to, you know, closer to the end of the decade?

Speaker #5: We believe there is an opportunity for us to accelerate our efficiency programs within the company.

Noah Poponak: Okay. Excellent. Thank you so much.

Speaker #8: Okay. Excellent. Thank you so much.

Speaker #5: You're welcome, Noah.

Francisco Gomes Neto: You are welcome, Noah.

Speaker #3: The next question comes from Daniel Gasparete with Itaú BBA. Please go ahead.

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

Speaker #7: Good morning, guys. Thank you very much for the opportunity. Two questions here from my side. The first one will be to if you could kindly walk us through what happened and what affected the margins on the executive aviation.

Daniel Gasparete: Good morning, guys. Thank you very much for the opportunity. Two questions here from my side. The first one will be to, if you could kindly walk us through what happened and what affected the margins on the executive aviation. You mentioned expenses with the Praetor. Just to get a better idea of how much it was, how would the margin be excluding for that? That would be question 1. Also, if you could comment on the same dynamic for the commercial aviation. Secondly, would be on the adjustment on the Republic order. Just to have a better understanding of how that works, in terms of is there any kind of cost for the client? I mean, it's like a conversation that you have with them, and you can simply accommodate them.

Uh should you be here on north? Thank you. Uh, on on the fence, right? We don't give specific numbers but the way that we see is that around 6, uh, probably 6 aircraft this year cases and 12 829, that's the way that we see and we see uh the space of uh delivery is growing, especially on PC year per year, up up to 10 aircraft in the end of the decade.

Speaker #7: You mentioned the expenses with the operator. Just to get a better idea of how much it was, how are the margins would be excluding for that.

Speaker #7: And that would be the question number one. And also, if you could comment on the same dynamic for the commercial aviation. And secondly, would be on the adjustment on the Republic order.

Speaker #7: Just to have a better understanding of how that works in terms of is there any kind of cost for the client? I mean, it's like a conversation that you have with them.

Speaker #7: And you can simply accommodate them? Or does that change the price? Has any kind of fee? Just to have a better understanding of how that works in terms of rearrangement of the orders.

Daniel Gasparete: Does that change, the price? Does this has any kind of fee? Just have a better understanding of how that works in terms of rearrangement of the orders. Thank you very much.

Speaker #7: Thank you very much.

Speaker #2: Felipe here, Gasparete. Thank you for your question. So the first question I will answer here. So when I look to executive aviation, the margins, right, the margin was pressure reflected US tariffs, right?

Felipe Santana: Felipe here, Daniel Gasparete. Thank you for your question. The first question I will answer here. When I look to executive aviation, the margins, right? The margin was pressure reflected US tariffs, right? We had the US tariffs this quarter that we didn't had last year. Also, the customer mix. We had much more fractional companies being delivered compared to the last year. Also with the launch of the new Praetor 500 and 600 models, we also had an impact on the selling expenses to that. The way that we see the coming quarters will be normalized, we don't expect any more impacts on the margins of executive aviation. The second question, Gui will take you.

We allow me to, to compliment. Uh, this answer. Uh, no. We we, we, we have been working in a new initiative. We call Poo to the left which uh, aimed to anticipate the revenues in higher profitability. So and then we are, we are focusing on enhancing our execution process, accelerating Revenue.

Speaker #2: We had the US tariffs this quarter that we didn't have last year. Also, the customer mix we had much more fractional companies being delivered compared to the last year.

Revenue. Any improving profitability at a faster pace? So I think there are now

Speaker #2: And also, with the launch of the new operator 500 and 600E models, we also had an impact on the selling expenses to that. But the way that we see the coming quarters will be normalized, we don't expect any more impacts on the margins of executive aviation.

Speaker #2: And the second question Gui will take you.

Speaker #8: Hi, Gasparete. Thanks for the question. So in terms of the Republic order, I think it's important to highlight first that there was no change whatsoever to the total order of aircraft order with us and in the backlog.

Francisco Gomes Neto: Hi, Daniel Gasparete. Thanks for the question. In terms of the Republic order, I think it's important to highlight first that there was no change whatsoever to the total order of aircraft order with us and in the backlog. The adjustment was purely limited to the delivery schedule, which was revised by a mutual agreement between the two parties. In Republic, the slots were reallocated to our other customers, so it should have no impact on our deliveries for the next few years.

Expenses with the breeder, just to get on a better idea of how much it was. How are the margin? Would be excluded for that? And that would be the question number 1. Uh, and also if you could comment on the same Dynamic for the commercialization and secondly uh, would be on the, the adjustments, on the Republic order, just to have a better understanding of how that works. Uh, in terms of, is there any kind of cost for the client? I mean, it's like a, a conversation that you have with them and you can simply accommodate them or does that change, uh, the price. This this has any kind of fee. Just have a better understanding of how that works in terms of rearrangement of the others. Thank you very much.

Speaker #8: The adjustment was purely limited to the delivery schedule, which was revised by mutual agreement between the two parties. And the Republic is a lot more reallocated already to other customers.

Speaker #8: So it should have no impact on our deliveries for the next few years.

Daniel Gasparete: Okay. Great. Thank you, Felipe. Thank you, Gui.

Speaker #5: Okay. Great. Thank you, Felipe. Thank you, Gui.

Thank you for your question. So, the first question I will answer here. So I want to look to his active Aviation the margins right? The margin was pressure. Reflected us tariffs, right? We had the US tariffs, this quarter that we didn't have, uh, last year. Also, the customer mix. We had much more, uh,

Speaker #3: The next question comes from Alberto Valerio with UBS. Please go ahead.

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

Speaker #9: Morning, Francisco Felipe, Gui. Thank you for thanking my question first. Welcome, Felipe. It would be a pleasure to work with you on this if you need anything.

Alberto Valerio: Morning, Francisco, Felipe, Gui. Thank you for taking my question. First, welcome, Felipe. It would be a pleasure to work with you. Count on us if you need anything. I have two on my side. The first on tariffs. I would like to know if this was 1 non-recurring item on the Q1. I thought this new 10% tariff would not be hitting the aerospace products. The second one, also on tariffs, the Section 232 has any involvement or any impact on your cost, if on the cost of your suppliers, from Mexico and Canada? The second one, it's about the book-to-bill. How have been in the Q2? What should expect for the divisions?

Speaker #9: I have two on my side. The first is on tariffs. I would like to know if this was one non-recurring item on the first quarter.

Uh, fractional companies being delivered compared to the last year. And also with the launch of the new operator, 500 and 600 E models. We also uh, had an impact on the selling expenses to that but the way that we see the coming more uh quarters will be normalized that we don't expect any more impacts on the margins of this activation. And the second question give will take you, thanks for the question. So in terms of the Republic order, I think it's important.

Speaker #9: I thought this new 10% tariff would not be hit in the aerospace products. The second one and also on tariffs, the section 232 has any involvement or any impact on your cost on the cost of your suppliers.

Important to highlight first that there was no change whatsoever to the total order of aircraft order with us and in the backlog. The adjustment was fairly limited to the delivery schedule, which was revised by a mutual agreement between the two parties. And, um, and we fought the slots were reallocated already for other customers. So you should have no impact on our deliveries for the next few years.

Speaker #9: From Mexico and Canada. The second one, it's about the book to bill. How have been in the second quarter? What should you expect for the divisions?

Okay, great. Thank you, Philippines. Thank you. Give—

Speaker #9: And if you could tell us if change, expectation because the order, I imagine that service might change with some grounding of old aircraft. If you may comment on this one.

Alberto Valerio: If you could tell us if change expectation, because or I imagine that service might change with some grounding of all the aircrafts, if you may comment on this one? Thank you very much.

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

Speaker #9: Thank you very much.

Speaker #2: Felipe here. Thank you, Albert, for your question. So regarding the tariffs, right, we had the impact on the first quarter of 13 million dollars.

Felipe Santana: Felipe here. Thank you, Alberto Valerio, for your question. Regarding the tariffs, right? We had the impact on Q1 of $13 million, mainly related to inventory effects. Looking forward, we still have another BRL 11 million inventory that will should impact Q2 of this year. When we look, right, to the potential impact of the U.S. Section 232, we maintain the tariff is our guide given everything that's going on, right? Because this reflects a conservative approach that we do have. As soon as we have more visibility-

Speaker #2: Mainly related to inventory effects. But looking forward, we still have another 11 million inventory. That should impact the second quarter of this year. When we look, right, to the potential impact of the US section 232, we maintain the tariff is down, guys.

Speaker #2: Give it everything that's going on, right? Because this reflects a conservative approach that we do have. As soon as we have more visibility than we can make any change or even the guidance or share with you what we will have of impact.

Guilherme Paiva: We can make any change or even the guidance or share with you what we will have of impact. Also your second questions, we don't give any information about the book-to-bill in the current quarter. Okay?

Morning, Francisco Philippe G. Uh, thank you for taking my question first, welcome Philip. Uh, it would be a pleasure to work with you on us if you need anything. Uh, I have 2 on my side, the First on Paris, uh, I would like to know if this was 1. No recurring item on the first quarter. I thought this new 10% type would not be hit, hitting the Irish face products, uh, the second 1 and, and also on Thursday, the, the section 232, uh, has any, uh, involvement or any impact on on your uh, cost if on the cost of your suppliers, uh, from Mexico and, and, and Canada. Uh, the second 1, it's, uh, about the, the book to view how have been, uh, in the second quarter, what?

Speaker #2: And also on your second questions, we don't give any information about the book to bill in the current quarter, okay?

Speaker #9: Perfect. Thank you very much.

Alberto Valerio: Perfect. Thank you very much.

Speaker #5: Thank you.

Francisco Gomes Neto: Thank you.

With respect to—for the divisions. And if you could tell us if change expectation, uh, because—or I imagine that service, uh, might change with some grounding of all the aircraft. If you could make comment on this one, thank you very much.

Speaker #3: The next question comes from Andre Mazini with Citi. Please go ahead.

Operator: The next question comes from Andre Mazini with Citi. Please go ahead.

Speaker #8: Yes. Hi, Francisco Felipe, Gui. Welcome to the call and CFO position, Felipe. Happy to chat. So the first one, we see Rolls-Royce wanting to go back to the narrow body engine market, which is currently dominated by CFM Sleep and Pratt GTF, so wanted to ask you guys if Embraer is already in conversation with Rolls-Royce for any future partnership, likely for future projects, new airframes, but if you guys are speaking to Rolls.

Andre Mazini: Yes. Hi Francisco, Felipe, Gui. Welcome to the call and CFO position, Felipe, happy to chat. The first one, we see Rolls-Royce wanting to go back to the narrow-body engine market, which is currently dominated by CFM's LEAP and Pratt's GTF. Wanted to ask you guys if Embraer is already in conversation with Rolls-Royce for any future partnership, likely for future projects, new airframes, but if you guys are speaking to Rolls. This is the first one, then I have a second one.

Speaker #8: This is the first one and I have a second.

Speaker #5: For the question? I mean, we are making studies for a new cycle of products for Embraer, right? I mean, either a commercial jet or a business jet.

Francisco Gomes Neto: The question? I mean, we are making studies for a new cycle of products for Embraer, right? I mean, either a commercial jet or a business jet. In that regard, we are talking to potential suppliers, I mean, of the different products to understand the new technology and so on. I cannot disclose your more details on that. I mean, with the specific number we talk to all of them, I don't have specific information to share with you about this or that specific supplier.

Here. Thank you so much for your question. Sorry, again, the tariffs right, we had the impact on the first quarter of 1330 million, mainly related to inventory effects. But looking forward, we still have another 11 million inventory, that will should impact the second quarter of this year. Uh, when we look right to the potential impact of the US section, 232, we maintain the tariffs down, our guys, give it everything that's going on, right? Because this reflects a consultative approach that we do have as soon as we have more visibility, then we can make any change or even the guidance where you share with you what we we have of impact and also on the your second questions. We don't give any information about the book to view on the current order, okay?

Perfect, thank you very much.

Thank you.

Speaker #5: So in that regard, we are talking to potential suppliers. I mean, of the different products to understand the new technology and so on. But I cannot disclose your more details on that.

The next question comes from, Andre mazini with City, please go ahead.

Yes, uh, hi Francisco. Philipi ghee. Welcome to the call in CFO position, Philippe, happy to chat,

Speaker #5: I mean, with the specific number, we talked to all of them. But I don't have a specific information to share with you about this or that specific supplier.

Speaker #8: Perfect. Perfect. Thank you, Francisco. And the second one, on potential competition. So Boeing is slated to certify the 777-7 later this year, the -7 is a 140-seat jet.

Andre Mazini: Perfect. Perfect. Thank you, Francisco. The second one on a potential competition. Boeing is slated to certify the 737-7 later this year. The 737-7 is a 140 seat jet, so a little bit larger in terms of seat count than the 195 E2. Do you think the 737-7 competes in any sense with the 195 E2, or given that it's a more expensive and longer range plane, it should be used for totally different missions, or if there's any overlap? Thank you.

Speaker #8: So a little bit larger in terms of seat counts than the 195E2. So do you think the -7 competes in any sense with the 195E2 or given that it's a more expensive and longer-range plane, it should be used for totally different missions or if there's any overlap?

Projects new, uh, new airframes. But uh, if you guys are are speaking to your roles, this is the first 1. Then I have a second.

the question, I mean, we are we are making

Speaker #8: Thank you.

Speaker #5: I think they might compete with us in one or another campaign. But we believe that for that segment, up to 150 seats, the E2 is the most competitive jet, the most efficient jet in that segment.

Francisco Gomes Neto: I think they might compete with us in one or another campaign, but we believe that for that segment, up to 150 seats, the E2 is the most competitive jet, you know, the most efficient jet in that segment. Then we believe Yeah, we might have some competition in some campaigns, but we are very confident that the E2 is the best option for the customers to complement the larger narrow bodies. It was developed for that segment with all the experience Embraer acquired with the first generation. Again, and the more and more customers are seeing that. We have now 24 customers for our E2s and are working in different new campaigns as well.

Speaker #5: So and then we believe the yeah, we might have some competition in some campaigns. But we are very confident that the E2 is the best option for the customers to complement the larger narrow bodies.

Studies for a new cycle of products for Imran right. I mean, either the commercial jet or a Business Jet. So in that regard, we are talking to potential suppliers. I mean of uh the different products to understand the new technologies and so on. But uh I cannot disclosure more details on that. I mean, with the specific number. We talked to to all of them but uh I don't have a specific information to share with you about uh this or that uh specifically supplier.

Speaker #5: It was developed for that segment with all the experience Embraer acquired with the first generation. So again, in the more and more customers are seeing that, we have now 24 customers for our E2s.

Speaker #5: And are working in different new campaigns as well.

Speaker #8: Thank you, Francisco.

Andre Mazini: Thank you, Francisco.

Perfect. Perfect, perfect. Thank you, Francisco, and the second 1 on a potential competition. So Bing is slated to certify. The triple 7-7 later this year. Uh, the dash 7 is a 1 140 seat jet. So a little bit larger in terms of a seat count than the 1 19582. So, do you think that -7, competes in any sense with the 1 185 V2 or given? That it's a more expensive and longer range, plane, it should be used for totally different missions or if there's any overlap, thank you.

With us in.

Speaker #3: The next question comes from Lucas Laghi with XP. Please go ahead.

Operator: The next question comes from Lucas Maggi with XP. Please go ahead.

1 or another campaign. But we believe that for that segment, up to 156,

Speaker #10: Good morning, Francisco Gui, Felipe. Congrats on the new role. I have a question on defense. I mean, showing a very strong commercial activity, right, on the C390 front.

Lucas Maggi: Good morning, Francisco, Gui, Felipe. Congrats on the new role. I have a question on defense. I mean, showing a very strong commercial activity right on the C-390 front. Just wanted to better understand, I mean, considering your current capacity output, I guess you mentioned like 6 aircraft this year, expectations for 10 aircraft by the end of the decade. Just better understanding, considering your current backlog, how full are your capacity considering Brazilian footprint as we speak, and if you see a further space for accelerating new orders without any new expansion and on this context. I mean, if new orders continue to accelerate, if you see any potential room for expansion in your facility here at Brazil.

Speaker #10: Just wanted to better understand. I mean, considering your current capacity, output, I guess you mentioned like six aircraft this year, expectations for 10 aircraft, by the end of the decade.

Speaker #10: So just better understanding considering your current backlog, how full are your capacity considering Brazilian footprint as we speak? And if you see a further space for accelerating new orders without any new expansion?

The E2 is the most competitive Jets, you know, most most efficient jet in that segment. So and then we believe the yeah, we might have some competition in a, in a, in some campaigns. But we are very confident that the A2 is, is the best option for the customers to complement, the larger and narrow bodies. It was developed for that segment with all the experience in ba acquired, with the first generation. So again, in the more and more customers are seeing that, we have no 24 customers for our EOS and, uh, and are working in and

U in different new campaigns as well.

Thank you for.

Speaker #10: And on this context, I mean, if new orders continue to accelerate, if you see any potential room for expansion in your facility here at Brazil?

The next question comes from Lucas Lackey with XP. Please go ahead.

Speaker #10: And I mean, on a still on the topic, but we understand the optionalities by building a new plant on the US, on India, just if you could give us an update on that front as well.

Lucas Maggi: I mean, still on the topic, we understand the optionalities by building a new plant on the US, on India. just if you could give us an update on that front as well, and how are those conversations with India and the US evolving? I mean, your partnership with Northrop Grumman. just better understanding your whole capacity on utilization context on the C-390. Thank you.

Speaker #10: I mean, how are those conversations with India and the US evolving? I mean, your partnership with Northrop Grumman. So just better understanding. The whole capacity utilization context on the C390.

Good morning. Congrats on the, on the new role. I have a question on defense. I mean, showing a very strong commercial activity right on the c390 prompt. Uh, just wanted to better understand and considering your current capacity output. Um, I guess you mentioned like 6, aircrafts this year expectations for 10 aircraft.

Speaker #10: Thank you.

Speaker #5: Very good question. First, I mean, we are investing to expand our production capacity for the KC-290, as I said. Growing one per year, 626, 727, 828, 929, and 10 in 30.

Francisco Gomes Neto: Very good question. First, I mean, we are investing to expand our production capacity for the C-390, as I said, growing 1 per year, 6 in 2026, 7 in 2027, 8 in 2028, 9 in 2029, and 10 in 2030. This capacity is enough to support the current sales campaigns we are working on. In parallel, we are working in opportunities that might bring much higher volumes like India and the US, right? Those campaigns will require a localization of our production. India is moving, is progressing as planned with the Indian Air Force. We are working very close to that campaign.

Speaker #5: And this capacity is enough to support the current sales campaigns we are working on. But in parallel, we are working in opportunities that might bring much higher volumes, like India and the US, right?

Speaker #5: But those campaigns, we require a localization of our production. So then India is moving is progressing as planned. With the India Air Force, we are working very close to that campaign.

Uh, by, uh, by the end of the decade. So just better understanding, uh, considering your current backlog. How full are Your Capacity, uh, considered in Brazilian footprint, uh, as we speak. And, uh, if you see a further space for accelerating new orders without, uh, any new expansion and, uh, on this context, I mean, if new orders continue to accelerate, if you see, uh, any potential room for expansion in your, in your facility here, at Brazil and, I mean, uh, on a still on the, on the topic. But we, we understand that the optionality is by building a new plant, on the UA, on the US on India. Um, just it's, um, if you could give us an update on on that front as well. I mean, how, how are those conversations with India and the US evolving? I mean, your partnership with north of Grumman, so just better understanding the whole capacity.

And utilization of context on the c390. Thank you.

Speaker #5: But if we win, that campaign, the aircraft will be assembled in India with a lot of local suppliers as well. This will help us to increase the capacity and fulfill the requirement of the META program in India.

Francisco Gomes Neto: If we win that campaign, the aircraft will be assembled in India with a lot of local suppliers as well. This will help us to increase the capacity and fulfill the requirement of the MTA program in India. On the other front, the US is the same. We now are working with the Northrop Grumman to develop, you know, the boom and other systems capabilities to make sure that the KC-390 will be ready, I mean, to enter in the US Air Force. Also, if we win a relevant order, this aircraft will be assembled in the US as well. With those two fronts, we will be able to increase our capacity and of course to grow significantly our defense business.

Very good question. Uh,

First, I mean, we— we are...

Speaker #5: On the other front, US. US is the same. So we now are working with the Northrop Grumman to develop the boom and other systems capabilities to make sure that the KC-290 will be ready to enter in the US Air Force.

we are investing to expand our production capacity of for the cases to United, as I said, growing 1 1 per year, 626 727 828 929 and 10 in 30 and this capacity is enough to support the the current sales campaigns we are working on

uh, what in parallel we are working and and opportunities that uh might bring

Speaker #5: And also, if we win a relevant order, this aircraft will be assembled in the US as well. So with those two fronts, we will be able to increase our capacity and, of course, to grow significantly our defense business.

A much higher volume like India and the US. Right? But those campaigns we we require it a localization of our production. So then

India is moving is progressing as planets with the India. India Air Force, we are working. Uh, uh, uh,

Speaker #10: Thank you. Thank you, Francisco.

Lucas Maggi: Thank you. Thank you, Francisco.

Speaker #5: You are welcome, Lucas.

Francisco Gomes Neto: You are welcome, Lucas.

Speaker #3: Thank you all very much. Now we'll start the question-and-answer session dedicated to the press. First, we will answer questions in English. And then we will answer questions in Portuguese.

Guilherme Paiva: Thank you all very much. We'll start the question and answer session dedicated to the press. First, we will answer questions in English. Then we will answer questions in Portuguese. We'll also answer questions sent via the platform chat. Hold while we poll for questions. First question comes from Richard Sherman with AirInsight. Go ahead.

If we win that campaign, the aircraft will be assembled in India with a lot of local suppliers as well. This will help us to increase the capacity and fulfill the requirements of the MEA program in India.

Speaker #3: We'll also answer questions sent via the platform chat. Please hold while we pull for questions. The first question comes from Richard Sherman with Air Inside.

On the other front us us is is the same. So we now are working with the Northrop, groomer to develop, you know, the the boom and other systems capabilities to, you know, to to make sure that the KC tonight will be ready. I mean to, to enter in the

US Air Force Inn in. Also, if we win a relevant order, this aircraft will be assembled in the US as well. So we do the 2 fronts, we will be able to increase our capacity, and of course, to grow a significantly, our defense business

Thank you. Thank you, Francisco.

You're welcome, Lucas.

Speaker #3: Please go ahead.

Speaker #8: Good morning. Can you hear me?

Richard Sherman: Good morning. Can you hear me?

Speaker #5: Yes, we can, Richard. Go ahead.

Thank you all very much. Now, we'll start the question and answer session dedicated to the Press.

Francisco Gomes Neto: Yes, we can, Richard. Go ahead.

Speaker #8: All right. Good morning. Hello. Hello. I have two questions, actually. In your remarks and answers, you mentioned the leveling of the production going to 2027.

Richard Sherman: All right. Good morning. Hello, hello. I have two questions, actually. In your remarks and answers, you mentioned the leveling of the production going to 2027. The original plan was to get to a more level production level already this year. What are the reasons that this is pushed out to 2027? My second question is, as you have been aware, on Wednesday, Tony Fernandes announced the big order for the Airbus A220, but you also mentioned that he was taking, or had taken a serious look at the Embraer E2. What's your view? Have you been given a fair chance to offer the E2 to AirAsia, and at what stage did you get in the negotiations?

Um, first, we will answer questions in English and then we will answer questions in Portuguese.

We'll also answer questions sent via the platform chat.

Speaker #8: The original plan was to get to a more level production, level already this year. What are the reasons that this is pushed out to 2027?

Please hold while we pull for questions.

Speaker #8: And my second question is, as you have been aware on Wednesday, Tony Fernandes announced the big order for the Airbus A220. But you also mentioned that he was taking or had taken a serious look at the Embraer A2.

Speaker #8: What's your view? Have you been given a fair chance to offer the A2 to AirAsia? And at what stage did you get in the negotiations?

The first question comes from Richard Sherman. With your line open, please go ahead.

Speaker #5: All right. So let's start with question number one, Richard. Yeah, we are having progress leveling our production this year. I mean, executive jets, we are now almost with the production leveled.

Francisco Gomes Neto: All right. Let's start with the question number 1, Richard. We are having progress leveling our production this year. I mean, executive jets, we are now almost with the production leveled. I mean, we saw good improvements in Q1 last year and this year again. You see this, the Phenoms and the Praetors, we now see the production almost leveled at the level we are looking for. 2027 will be just a fine adjustment for executive jets. On commercial jets, Richard, we have some more challenges because of some pacers, suppliers. We did it better this year, and we expect to improve even further for 2027.

Good morning. Can you hear me?

Speaker #5: I mean, we saw good improvements in Q1 last year. And this year, again, and we'll see this the finals and the pre-orders, we now see the production almost leveled at the level we are looking for.

Speaker #5: So 2027 will be just a fine adjustment for executive jets. On commercial jets, Richard, we have some more challenges. Because of some pacers, suppliers, so we did a better this year.

Yes, we can reach you, go ahead. All right. Good morning. Hello. Hello. I have 2 questions, actually, um, in your remarks and answers, you mentioned, the leveling of the production going to 2027. The original plan was to get to a More Level production level already this year, uh, what are the reasons that this is pushed out to 2027? And my second question is, uh, as you have been aware on Wednesday, Tony Fernandez announced the big order for the abyss a220, but you also mentioned that he was, uh, taking of had taken a serious.

Speaker #5: And we expect to improve even further for 2027. So we are working we have been working already with the suppliers to make sure that we will have a better start in 2027 than we had in 2026.

Look at the embryo E2. Um what's your view? Have you been given a fair chance to offer the e22 erasia?

And at what stage did you get in the negotiations?

Francisco Gomes Neto: We have been working already with the suppliers to make sure that we will have a better start in 2027 than we had in 2026. Again, the program is moving well. Executive jets more advanced, but commercial jets are also improving. The second question about AirAsia. I mean, first of all, I mean, after our customer is good, it's good to see another low-cost carrier in the region recognizing the advantages of a small narrow body jets, right? This is a trend that we expect to continue as we rebuild our record backlog and huge E2 momentum in the market. Remember, we sold the last year, I mean, almost 200 E2s.

Speaker #5: So again, the program is moving well. Executive jets, more advanced, but commercial jets are also improving. The second question about AirAsia. I mean, first of all, I mean, after our customer is good, it's good to see another low-cost carrier in the region recognizing the advantages of a small narrow-body jet, right?

All right, so let's start with the question. Number 1, Richard. Uh, yeah, we are having progress. Uh, uh, leveling our production this year, I mean, uh, as active Jets, we are now almost with the production levels. I mean, we, we saw,

Good improvements in Q1 last year and this year again. And, uh, we see this.

Speaker #5: So and this is a trend that we expect to continue. As we build our record backlog and huge momentum in the market, remember, we saw the last year I mean, almost 200 A2s.

Speaker #5: So obviously, we would have liked to add AirAsia to our global family of 24 A2 operators. But our competitor, we knew since the beginning that our competitor has a huge incumbent in that airline.

Francisco Gomes Neto: Obviously, we would have liked to add AirAsia to our global family of 24 E2 operators. You know, our competitor, we knew since the beginning that our competitor has huge incumbents in that airline and earlier air slots. As we did very well last year, I mean, and we also have a lot of opportunities this year, we don't see this a big issue for Embraer. This will not affect our growth plans for our commercial jets. Yes, it was a good experience working with AirAsia. I think they understood the benefits of our product. Our product could bring it to their fleet. In the end of the day, they decide to go with the competition, and we respect their decision.

Speaker #5: And earlier, it's lost. So and as we did very well last year, I mean, and we also have a lot of opportunities this year we don't see this a big issue for Embraer.

Uh, the phenos and the PTO, we now see the production almost level at at the, the, the level we are looking for. So 2027 will be just a fine adjustments for as commercial Jets. Richard we, we have some more challenges because of some uh, Paces suppliers. So we did it better this year and we expect to improve even further for 2027. So we are working in, we have been working already with the suppliers to make sure that we will have a better start in 27 and we had in 20 in 26. So again, the program is moving well. Uh, it's up to you guys more advanced. But uh uh, commercial jets are also improving.

Speaker #5: This will not affect our growth plans for commercial jets. And yes, it was a good experience working with AirAsia. I think they understood the benefits of our product, our product could bring it to their fleet.

Speaker #5: But at the end of the day, they decided to go with the competition. And we respect their decision.

Speaker #10: Okay. Thank you. Can I add one more question in follow-up on the first answer you gave? Do you expect to improve the commercial jet production and get it more level already in the second half of the year?

Richard Sherman: Okay. Thank you. Can I add one more question, in follow-up on the first answer you gave? Do you expect to improve the commercial jet production and get it more level already in H2 of the year?

To our Global family of 24 into operators. But, you know, our competitor, we knew since the beginning that our competitor has a huge incumbents.

Francisco Gomes Neto: We are working on that. In this initiative I mentioned before that we call pull to the left. This includes, you know, also production and deliveries, but not significantly, we do this year because of the supply chain. We don't see any risk for us to deliver the guidance we gave to the market of 85 commercial jets and between 160 and 170 business jets. A better improvement in terms of leveling for commercial jets, we will see in 2027 and 2028.

Speaker #5: We are working on that in this initiative. I mentioned before, we call that we call pull to the left. This includes also production and deliveries.

In, uh, in that—in that airline and earlier—is what. So,

Speaker #5: But not in a significant way. It's still this year because of the supply chain. We don't see any risk for us to deliver the guidance we gave to the market of 85 commercial jets in between 160 and 170 business jets.

And as we did it very well last year, I mean, and we also have a lot of opportunities. Here we, we don't see this. A big issue for umbrella. This will not affect our growth plans for for commercial Jets.

Speaker #5: But a better improvement in terms of leveling for commercial jets, we will see in 2027 and 2028.

And yes, it was a good experience working with their agent. I think they understood the the benefits of our product. The product, our product could would bring it to their feet, but in the end of the day, they decide to go with the competition. And we respect their decision.

Speaker #10: Brigado.

Richard Sherman: Obrigado.

Speaker #5: Leonardo, thank you, Richard.

Francisco Gomes Neto: De nada. Thank you, Richard.

Speaker #3: Thank you. The next question comes from Jonathan Hemmerdinger with FlightGlobal. Please go ahead.

Guilherme Paiva: Thank you. The next question comes from Jonathan Hemmerdinger with FlightGlobal. Please go ahead.

Okay, thank you. Can I add 1 more question in a follow up on the first answer you gave, do you expect to improve the commercial jet production and get it more level already in the second half of the year?

Jonathan Hemmerdinger: Hello, everyone. I think you can hear me now. Thanks for doing this. Hey, for future aircraft commercial jets, you touched on it briefly, Francisco. Any update you can give us on what segment you're looking at? How large of an aircraft? What timeline would be? We know you've been considering this for several years. What have you learned in the last year? Just tell us more about that, if you could.

Speaker #11: Hello, everyone. I hope you I think you can hear me now. Thanks for doing this. Hey, commercial future for future aircraft, commercial jets, you've touched on it briefly, Francisco.

Uh, we are working on that in this initiative. I mentioned before, I recall, that we call P to the left. We this in this includes this includes, you know, also production and deliveries. Uh, but not in a

Significantly is still this year because of the supply chain, uh, we don't see any risk.

Speaker #11: Any update you can give us on what segment you're looking at, how large of an aircraft, what timeline would be? We know you've been considering this for several years.

For us to deliver the the guidance we gave to the market of 85 commercial gems in between 160 and 170, Business Jet. But, uh,

Speaker #11: What have you learned in the last year? Just tell us more about that, if you could.

A better improvement in terms of leveling for commercial jets. We will see in 2027 and 2028.

Speaker #5: Yeah, Jonathan, thanks for the question. Well, first, we are now, as you see, we are we have been focusing a lot on improving our performance in terms of deliveries and sales of the products we have, right?

Francisco Gomes Neto: Yeah, Jonathan, thanks for the question. Well, first, as you see, we have been focusing a lot on improving our performance in terms of deliveries and sales of the products we have, right? We have a very modern and competitive portfolio of products. We are increasing our backlog with new orders for all the segments, commercial, executive, and defense. This will take us, Embraer, to a very important midterm growth in terms of revenues, in terms of profitability. In parallel, we are investing in new technologies, you know, aerostructures, wings, cockpits, and so on, in order to be ready to develop a new airplane.

We got.

Thank you, Richard.

Speaker #5: We have a very modern and competitive portfolio of products. And we are increasing our backlog and now it's with the new orders for all the segments, commercial, executive, and defense.

Thank you. The next question comes from Jonathan heringer West flight Global. Please go ahead.

Hello everyone. I hope you. I think you can hear me now.

Speaker #5: And this will take us, Embraer, to a very important mid-term growth in terms of revenues, in terms of profitability. But in parallel, we are investing in new technologies.

Uh, thanks for. Thanks for doing this. Hey, uh, commercial future, for future aircraft commercial Jets. We you you touched on it, briefly Francisco. Um,

Any update, you can give us on.

What segment you're looking at, how large of an aircraft, uh, what?

Speaker #5: Aerostructures, wings, cockpits, and so on. In order to be ready to develop a new airplane. So we are making studies in the two fronts.

Timeline would be um I we we know you've been considering this for several years.

Uh, what have you learned in the last year?

Francisco Gomes Neto: We are making strategies in the two fronts, and we are not at the point to disclose any more information on that because we don't have a decision yet about the segment we want to go to. We know we need a strong product with a strong value proposition, with a robust, I mean, funding strategy because we don't want to put in risk the financial health of the company. Again, we are working in all those fronts, but we are not ready yet to disclose more information on that.

Just tell us more about that. If you could.

Speaker #5: And we don't have we are not at the point to disclosure any more information about that because we don't have a decision yet about the segment we want to go to.

Speaker #5: But we know we need a strong product with a strong value proposition, with a robust, I mean, funding strategy because we don't want to put in risk the financial health of the company.

Speaker #5: So again, we are working on all those fronts. But we are not ready yet to disclose more information on that.

Speaker #11: Thank you. I just do wonder if you might say any estimate of timeline, how long you think the eJets can carry that growth that you're talking about and when a decision might have to be made.

Jonathan Hemmerdinger: Thank you. I just do wonder if you might say any estimate of timeline, how long you think the E-Jets can carry that growth that you are talking about and when a decision might have to be made.

Francisco Gomes Neto: This does not depend only on us. This depend on the technology available in the market, right, for different products. This is what we are working on. We don't have a timeline to share with you, Jonathan.

Speaker #5: This does not depend only on us. This depends on the technology available in the market, right, for different products. And this is what we are working on.

Speaker #5: So we don't have a timeline to share with you Jonathan.

Yeah, Jonathan thanks for the question. Uh well first we are no as you see, we are. We have been focusing a lot on, improving our performance, in terms of deliveries and sales of the products we had, right? We have a very modern and competitive portfolio of products and we are, we are increasing our backlog and ours, uh, with a new orders for all the segments, commercial of executive and defense. And and and uh this will take to a very important midterm growth in terms of revenues, in terms of profitability. But in parallel, we are investing new technologies, you know, I have a structures, the wings cockpits and so on in order to be ready to develop a new airplane. So we are making studies in the, in the 2 and uh we don't have. Uh we are not at the point to disclosure any

Speaker #11: Yeah. Very good. Thanks for your time.

Jonathan Hemmerdinger: Very good. Thanks for your time.

Speaker #5: Thank you.

Francisco Gomes Neto: Thank you.

Speaker #3: The next question comes from Steve Trimble with Aviation Week. Please go ahead.

Guilherme Paiva: The next question comes from Steve Trimble with Aviation Week. Please go ahead.

Any more information about that because we don't have a decision yet about the the segment we want to go to. But we know we we need a a strong product with a strong value proposition with a robust. I mean,

Speaker #12: Yeah. Hi. Thank you very much. I was just I wondered if you could say anything more about the timeline for setting up infrastructure for the completion center in the UAE.

Steve Trimble: Yeah, hi. Thank you very much. I was just, I wondered if you could say anything more about the timeline for setting up infrastructure for the completion center in the UAE, as well as the delivery schedule for the UAE.

Funding strategy because we don't want to put in Risk to the financial health of the company. So again we are working in all those uh fronts. But we are not already at to disclosure more information on that, thank you. Um, I I just do wonder if you might say

Speaker #12: As well as the delivery schedule for the UAE.

Francisco Gomes Neto: Well, Steve, I mean, we don't have plans for completion centers at this point of time in UAE. We are working to collaborate with the local suppliers in the UAE, and this is ongoing process. We will increase our collaboration with local suppliers. I mean, we mentioned the Gen5, for example, in case of the KC-390. We don't have this plan at this point of time for a completion center. It'll be just a collaboration with the local suppliers for us to buy parts made by them.

Speaker #5: We are still, I mean, we don't have plans for completion centers at this point of time. In UAE, we have we are working to collaborate with a local suppliers in the UAE.

Any uh, estimate of timeline how long you think the e-jets can carry that growth that you're talking about. And, and when a decision might have to be made,

Speaker #5: And this is in the this is an ongoing process. So we will increase our collaboration with local suppliers. I mean, we mentioned the Gen5, for example, in case of the KC-29.

Very good. Thanks for your time.

Thank you.

Speaker #5: And but we don't have this a plan at this point of time for a completion center. It'll be just a collaboration with the local suppliers for us to buy parts, made by them.

The next question comes from Steve Trimble with Aviation week, please go ahead.

Yeah. Hi, thank you very much. Uh, I was just uh,

Speaker #12: I see. And do you have a delivery schedule for those UAE C39?

Steve Trimble: I see. Do you have a delivery schedule for those UAE C-390?

I wondered, if you could say anything more about the timeline, uh, for setting up infrastructure for the completion Center in the UAE, uh, as well as the delivery schedule, uh, for the UAE.

Francisco Gomes Neto: Yes, we do have. We should start the deliveries by 2028 and continue in the years ahead.

Speaker #5: Yes. We do have. We should start the deliveries by 2028 and continue in the years ahead.

We have Stephen me.

Speaker #12: Thank you.

Steve Trimble: Thank you.

Speaker #3: Thank you. The next question is sent from the chat. Was sent from the chat. I'm sorry. And it's from Edgardo Gimenez Maso with Aviation Line.

Guilherme Paiva: Thank you. The next question was sent from the chat, I'm sorry. It's from Edgardo Jimenez Mazo with Aviacionline. Has the operational debut of the E190 Freighter in Europe led to a concrete increase in interest from lessors or express integrators who were previously in the wait and see phase? What is your assessment on the program's progress to date?

We we, uh, we don't have, uh, plans for completion centers at this point of time in UAE. We have, uh, we are working to collaborate with the local suppliers in the UAE, and this is in the

Speaker #3: Has the operational debut of the E190 fighter in Europe led to a concrete increase in interest from lessors or express integrators who were previously in the wait-and-see phase?

This is an ongoing process so we we we we will increase our collaboration with local suppliers. I mean, we mentioned the, the J5 for example, in case of the case 29th and uh but we don't have this a plan at this point of time for a completion Center. Is it will be just a collaboration with the local suppliers for us to buy parts made by them?

I see. And do you have a delivery uh schedule for those UAE, uh, c390

Speaker #3: What is your assessment on the program's progress to date?

Francisco Gomes Neto: Could you repeat the question? I don't know if I get. Could you repeat the question, please?

Speaker #5: Could you repeat the question? I don't know if I get the could it repeat the question, please?

Uh, yes, we do have uh we should start the deliveries by 2028 and continued in the years ahead.

Thank you.

Speaker #3: Of course, sir. Has the operational debut of the E190 fighter in Europe led to a concrete increase in interest from lessors or express integrators who were previously in the wait-and-see phase?

Guilherme Paiva: Of course, sir. Has the operational debut of the E190 Freighter in Europe led to a concrete increase in interest from lessors or express integrators who were previously in the wait-and-see phase? What is your assessment of the program's progress to date?

Thank you. The next question.

Speaker #3: What is your assessment of the program's progress to date?

Is sent from the chats—it wasn't from the chat, I'm sorry—and it's from Edgardo Janes, uh, Humanes Muscle with Online.

Speaker #5: Okay. The freighter. Thank you. Thank you for the question. Yes, we have now a customer. So with the entering in operation with the E190 freighter, this will help to showcase the product and we believe it's a great product for e-commerce, especially.

Francisco Gomes Neto: Okay. The freighter. Thank you. Thank you for the question. Yes, we have now a customer entering in operation with the E190 Freighter. This will help to showcase the product, and we believe it's a great product for e-commerce especially. We have a good expectation about the future sales with the E190 Freighter.

Speaker #5: And we have a good expectation about the future sales with the E190 freighter.

Has the operational de debut of the e190 fighter in Europe, led to a concrete increase in interest from last lastres or Express integrators, who were previously in the wait and see phase? What is your assessment on the programs progress today?

What do we beat the question? I don't know if I get the

Speaker #3: Thank you very much, sir. The next question comes from Kurt Epstein with Aviation International News. Please go ahead.

Guilherme Paiva: Thank you very much, sir. The next question comes from Curt Epstein with Aviation International News. Please go ahead.

Speaker #12: Yes. Good morning, gentlemen. Can you hear me?

Curt Epstein: Yes. Good morning, gentlemen. Can you hear me?

Speaker #5: Good morning. Yes.

Francisco Gomes Neto: Good morning. Yes.

Speaker #12: Yes. In the beginning, you mentioned the 29 executive jet deliveries for the first quarter. You had mentioned there was a disclaimer on there. Is that actually a record for Embraer in the first quarter executive jet deliveries?

Curt Epstein: Yes. In the beginning, you mentioned the 29 executive jet deliveries for the first quarter. You had mentioned there was a disclaimer on there. Is that actually a record for Embraer in the first quarter executive jet deliveries?

Will be the question please of course, sir has the operational debut of the e190 Friday in Europe. Led to a concrete increase in interest from lessors or Express integrators. Who were previously in the wait and see face. What is your assessment of the programs progress to date?

Speaker #5: Yes. It is. And we are very happy with that.

Francisco Gomes Neto: Yes, it is, and we are very happy with that.

Speaker #12: Okay. Thank you very much.

Curt Epstein: Okay. Thank you very much.

Speaker #5: It's the result of this production leveling efforts.

Francisco Gomes Neto: It's a result of these production leveling efforts.

Okay. The freedom. Thank you. Thank you for the question. Yes, we have now, uh, a customer. So with the entering in operation with the United Freighters, this will help to showcase the product, and we believe it's a

Speaker #12: Okay. Thank you. I just wanted to confirm that I think you'd said in a decade or something like that. So I just want to make sure that is actually the record for the company.

Curt Epstein: Okay. Thank you. I just wanted to confirm that. I think you'd said in a decade or something like that, so I just want to make sure that is actually the record for the company.

Speaker #5: Yes. And I mean, we are coming from tough times in the past, especially with the supply chain. That was leading us to concentrate deliveries at the end of the year.

Francisco Gomes Neto: Yes. You know, I mean, we are coming from tough times in the past, especially with the supply chain that, you know, was leading us to concentrate the deliveries at the end of the year. This means, you know, a weak Q1, because of that concentration the year before. Now we are changing the situation step by step, and this, you know, delivering these jets, executive jets in Q1 this year, is proving that we are in the right way.

It's a great product for e-commerce especially, and we have a good expectation about the future sales with the Unity freighter.

Speaker #5: And this means a week Q1. Because of that concentration, the year before. But now we are changing the situation step by step. And delivering these jets is actually jets in Q1 this year.

Thank you very much, sir. The next question comes from, Kurt Epstein. Um, with Aviation international news, please go ahead.

Yes. Good morning, gentlemen, can you hear me?

Speaker #5: It's proving that we are in the right way.

Speaker #12: Thank you so much.

Curt Epstein: Thank you so much.

Good morning. Yes yes. Uh in the beginning you mentioned the uh 29 executive jet delivery is the first quarter. You had mentioned there was a disclaimer on there. Is that actually a record for Embraer in the first quarter, executive jet deliveries

Speaker #3: The next question comes from the chat. And it's from Joanna Bailey. How does the UAE's C390 order help you get a foot in the door in the Middle East?

Guilherme Paiva: The next question comes from the chat and is from Joanna Bailey. How does the UAE's C-390 order help you get a foot in the door in the Middle East? Are you having conversations with other Middle East nations? Could you provide some color on the production level of the C-390 and how you see it ramping up as more orders come in?

yes, it is and we are very happy with

That. Okay, thank you very much. The result of this production leveling efforts.

Speaker #3: Are you having conversations with other Middle East nations? Could you provide some color on the production level of the C390 and how you see it ramping up as more orders come in?

Okay, thank you. I just want to confirm that. I think you'd said in a decade or something like that. So I just want to make sure that is actually the record for the company.

Speaker #5: Yeah. All right, Joanna. Good question. Yes. We do see opportunities to sell the KC-29 to more customers in the region because of this important order of UAE.

Francisco Gomes Neto: All right, Joanna, good question. Yes, we do see opportunities to sell the KC-390 to more customers in the region because of this important order of UAE. Yes, we are talking to other customers at this point of time. The third question, the production leveling includes the KC-390 as well. It is a more complex product, complex aircraft, but we have been able to reduce both the production lead time of the aircraft and to improve the production distribution of the aircraft, I mean, throughout the year. It's the challenge is bigger than the other ones because of the supply chain. We are seeing good progress.

Yes. And, you know, I mean, we are coming from tough times in the past, especially with the supply chain that, you know, was leading us to concentrate the deliveries at the end of the year, and this means, you know, uh, Q1, uh, because of that concentration the year before. But now we are, we are changing.

Speaker #5: And yes, we are working we are talking to other customers at this point of time. Yeah. The third question? Yeah. The production leveling is included the KC-29 as well.

The situation, step by step. And this, you know, they live in these jets. Exactly the jets in Q1. This year is proving that we are in the

The right way.

Thank you so much.

Last question comes from.

Speaker #5: It is a more complex product, complex aircraft. But we have been able to reduce both the production lead time of the aircraft and to improve the production distribution of the aircraft I mean, throughout the year.

The chat and is from Joanna. Bailey. Um, how does the uae's c390 order help you help you get a food in the door in the Middle East.

Are you having conversations with other? Middle East Nations?

Speaker #5: It's the challenges is bigger than the other ones. Because of the supply chain. But we are seeing good progress. We are seeing good progress as we are seeing with eJets and executive jets as well.

Could you provide some color on the production level of the c390 and how you see it ramping up as more orders come in?

Francisco Gomes Neto: We are seeing good progress as we are seeing with the E-Jets and executive jets as well.

Speaker #3: Thank you, sir. The next question also comes from the chat. And it's from Molly McMillan with Aviation Week. Could you please talk about the demand environment for business jets and whether the war with Iran has created any hesitation or hesitations or impact?

Guilherme Paiva: Thank you, sir. The next question also comes from the chat and is from Molly McMillin with Aviation Week. Could you please talk about the demand environment for business jets and whether the war with Iran has created any hesitation or hesitations or impact? Could you please talk about the tariffs when it comes to business jets? How much of an impact does that have on demand? Thank you.

All right. Good question. Yes. We we we do see opportunities to sell the cases United to more customers in the region because of this important order of, uh, UAE and yes, we are working. We are talking to other customers uh, at this point of time.

Speaker #3: And also, could you please talk about the tariffs when it comes to business jets? How much of an impact does that have on demand?

Speaker #3: Thank you.

Speaker #5: All right. Thanks for the question. Well, we are not seeing impact so far. With that might affect the sales of our business jets. Demand is still strong for our business jets.

Francisco Gomes Neto: All right. Thanks. Thanks for the question. Well, we are not seeing impact so far that might affect the sales of our business jet. Demand is still strong for our business jets as we have a very modern portfolio, especially now with the launch of the Praetor 500 and 600 that are selling very well. With the tariffs, I would ask my colleagues, Felipe and Gui, to share more color with you.

Uh, yeah, the the third question. Yeah, the production leveling is, uh, included is the case here tonight, as well. It is a more complex product complex aircraft. But we have been able to, to reduce the both the production and the time of the, the aircraft. Yeah. To improve the, uh, the the production distribution of the aircraft. I mean, throughout the year. It's uh, the challenges is, is bigger than the other ones because of the supply chain. But uh we are we are seeing good progress. We are seeing good progress as we are seeing

Speaker #5: As we have a very modern portfolio, especially now with the launch of the Predator 500E and 600E that are selling very well. With the tariffs, I would ask my colleagues Philippe and Guy to share more color with you.

With ejs in this activity, JS as well.

Thank you, sir. The next question also comes from the chat and is from Molly McMillan with Aviation week.

Speaker #13: Yeah. Thanks, Francisco. On the tariffs, on the executive jets, it has impacted our COGS. But we do think that we have a superior product in the industry versus our competition.

Guilherme Paiva: Thanks, Francisco. On the tariffs on executive jets, it has impacted our costs, but we do think that we have a superior product in the industry versus our competition. Even with the price adjustments that we have taken, it remains very competitive, and I think the book-to-bill sales that we posted last year above 1.0 or close to 1.0 was very solid. We continue to have the longest queue of customers in the industry, and we're selling our products now into the 2029. Especially, we are very excited about the new Praetor family with the enhancements that we are in the value proposition that we're giving to our customers.

Um, could you please talk about the demand environment for business Jets and whether the war with Iran has created any hesitation or hesitations or impact?

And also, could you please talk about the tariffs when it comes to business jets? How much of an impact does that have on demand? Thank you.

Speaker #13: And even with the price adjustments that we have taken it remains very competitive. And I think the book-to-bill sales that we posted last year above 1.0 or close to 1.0 was very solid.

Speaker #13: We continue to have the longest queue of customers in the industry. And we are selling our products now into the 2029, especially we are very excited about the new Predator family.

Speaker #13: With the enhancements that we are in the value proposition that we give into our customers.

All right, thanks. Thanks for the question. Uh, well, we are not seeing uh, impact so far with uh that might affect the sales of our business chat. Demand uh demand uh is is still strong uh for for our business chats. As we have a very modern portfolio especially now with the with the launch of uh the operator of 500 and 600 and E that are selling

Speaker #3: Thank you, gentlemen. This concludes the question and answer session. In English for the press. This question and answer will be now conducted in Portuguese.

Guilherme Paiva: Thank you, gentlemen. This concludes the question and answer session in English for the press. This question and answer will be now conducted in Portuguese. To switch to English, please press the interpretation button on the platform and then select English.

Speaker #3: To switch to English, please press the interpretation button on the platform and then select English.

are selling very well with the therapist, I would ask uh my colleagues uh Philippine and get to to share more color with you.

Speaker #14: We will now begin the Q&A session in Portuguese.

Francisco Gomes Neto: We will now begin the Q&A session in Portuguese.

Speaker #15: First question from Chandu Alves. Through the chat box. It's from Ovalie Newspaper. Could you please give us an update about your negotiations with India and the US Air Force for the sales of KC-390 or C390?

Thais Moraes: First question from Sandro Alves through the chat box. He's from O Vale newspaper. Could you please give us an update about your negotiations with India and the US Air Force for the sales of KC-390 or C-390? Thank you.

Speaker #15: Thank you. Thank you for your question. The project in India that we call which is called MTA Medium Transport Aircraft is progressing and it's progressing quite well.

Francisco Gomes Neto: Thank you for your question. The project in India which is called MTA, Medium Transport Aircraft, is progressing, and it's progressing quite well, and we are working hard. We have a dedicated team working on that project. Our defense team is dedicated to the project. It's a very large and significant project for Embraer. We are looking at it very closely. We are getting prepared. This will require, you know, local assembly of the plane, and this will require the use of several parts made in India. We've been working with our procurement teams, engineering teams, and our business teams to prepare ourselves to come up with a very competitive proposal for that campaign. What was the second question again?

Yeah, thanks Francisco. On the tariffs, on active Jets. Um, he has impacted our cogs, but, uh, we do think that we have a superior product in the industry versus our competition, um, and even with the price adjustments that we have taken it remains very competitive, and I think the book to build sales that we posted last year above 1.0, or post, 1.0 was very solid. We continue to have the longest, um, feel of customers in the industry and we'll be selling our products now into the 2029 special. Uh, we are very excited about the new Predator family with the enhancements that we are in the value. Proposition that we give into our customers.

Thank you, gentlemen. This concludes the question and answer session in English for the Press.

Speaker #15: And we are working hard. We have a dedicated team working on that project. Our defense team is dedicated to the project. It's a very large and significant project for Embraer.

This question and answer will be now conducted in Portuguese to switch to English. Please press the interpretation but button on the platform and then select English.

Speaker #15: We are looking at it very closely. We are getting prepared. This will require local assembly of the plane. And this will require the use of several parts.

We will now begin.

The Q&A session in Portuguese.

Speaker #15: Made in India. And we've been working with our procurement teams engineering teams our business teams to prepare ourselves to come up with a very competitive proposal.

First question from shandu, Alvis through the chat box newspaper. Could you please give us an update about your negotiations with India and the US Air Force for the sales of Casey 390 or c390

Speaker #15: For that campaign. What was the second question again? About US Air Force. The same thing. In the US, we are working at full force.

Thank you. Thank you for your question.

Thais Moraes: About US Air Force.

The project in India that we call.

Francisco Gomes Neto: The same thing. In the US, we are working at full force. Our defense team is working very closely with Northrop Grumman, our partner, one of the most important defense companies in the US. We are also doing campaigns. We took the plane to the US several times to try to convince the US Air Force about the benefits of our aircraft, particularly when it comes to MTS, which is a new generation of boom refueling systems of the fighter jets.

Speaker #15: Our defense team is working very closely with Northrop Grumman. Our partner one of the most important defense companies in the US and we are also doing campaigns.

Which is called MTA medium transport. Aircraft is progressing, and it's progressing, quite well, and we are working hard. We have a dedicated team.

Speaker #15: We took the plane to the US several times to try to convince the US Air Force about the benefits of our aircraft particularly when it comes to and TS MTS which is a new generation of boom refueling systems of the fighter jets.

Speaker #15: Thank you. Next question is from Raquel Brando with Invest News. You may proceed. Hello Francisco. Good morning. Good morning to you all. Congrats for your results.

Thais Moraes: Thank you. Next question is from Raquel Brandão with InvestNews. You may proceed.

Fire, you know, local assembly of the plane. And this will require the use of several parts Made in India. And we've been working with our procurement teams, engineering teams, our business teams to prepare ourselves

To come up with a very competitive.

Raquel Brandão: Hello, Francisco. Good morning. Good morning to you all. Congrats for your results. Congrats for your results. You had a very strong number in Q1. My question is whether I mean, how do you see things going forward? I know you're very confident. I would just like to understand whether somehow this fuel crisis that we are experiencing now, and that is putting pressure on the airlines, whether this already has any impact on demand, whether you're having any conversations along these lines. Also in terms of the executive jets and companies that have executive fleet, because certainly fuel is a very important aspect in aviation. I would just like to know whether the cost of fuel is impacting demand or will impact demand going forward, and whether deliveries will be postponed or delayed.

Proposal.

For that campaign.

What was the second question again?

About US Air Force.

Speaker #15: Congrats for your results. You had a very strong number in the first quarter. So my question is whether I mean, how do you see things going forward?

Speaker #15: I know you're very confident. But I would just like to understand whether somehow this fuel crisis that we are experiencing now and that is putting pressure on the airlines whether this already has any impact on demand?

Speaker #15: Whether you're having any conversations along these lines? And also in terms of the executive jets and companies that have executive fleet because certainly fuel is a very important aspect in aviation.

The same thing in the US we are working at full force. Our defense team is working very closely with North Grumman. Our partner, 1 of the most important and defense companies in the US and we are also doing campaigns. We took the plane to the US several times to try to convince the US Air Force about the benefits of our aircraft particularly when it comes to and TS MKS, which is a new generation of uh boom refilling Systems off the fighter jets.

Thank you. Next question is from Jaco Brando with Invest News. You may proceed.

Speaker #15: So I would just like to know whether the cost of fuel is impacting demand or will impact demand going forward and whether deliveries will be postponed or delayed.

Hello Francisco. Good morning.

Good morning to you all.

Congrats for your results.

Speaker #15: Hi, Raquel. It's a pleasure to talk to you. Well, certainly. The increase in fuel cost will impact the cost of the airlines and also some expansion plans.

Francisco Gomes Neto: Hi, Raquel. It's a pleasure to talk to you. Well, certainly the increase in fuel cost will impact the cost of the airlines and also some expansion plans. We're seeing now many of the airlines cutting costs and canceling flights while the situation is still around us. We are monitoring it very closely. Our commercial aviation team is looking at that very closely. So far, we haven't seen any impact. We haven't seen any customer postponing their sales campaigns, or they haven't even asked us to delay the delivery of aircraft. That's why we are looking at it very close. On the executive side, we are not seeing any impact. The number of hours flown, I mean, it is reaching record levels month after month. Therefore, right now, we don't see any impact to executive aviation.

You had a very strong number in the first quarter. So my question is whether

Speaker #15: And so we're seeing now many of the airlines cutting costs and canceling flights while the situation is still around us. We are monitoring it very closely.

I mean, how do you see things going forward? I know you're very confident, but I would just like to understand whether somehow this fuel crisis that we are experiencing now and that is putting pressure on the airlines whether this

Speaker #15: Our commercial aviation team is looking at that very closely. But so far we haven't seen any impact. We haven't seen any customer postponing their sales campaigns or they haven't even asked us to delay the delivery of aircraft.

already has any impact on demand, whether you're having any conversations along these lines and also in terms of the

The executive Jets. And and companies that have executive Fleet because certainly fuel

Speaker #15: That's why we are looking at it very close. On the executive side, we are not seeing any impact. The number of hours flown I mean, it is reaching record levels.

is a very important aspect in aviation. So I would just like to know whether the cost of fuel is impacting the man or will impact the man going forward and whether the deliveries will be postponed or delayed.

Speaker #15: Month after month. So therefore right now we don't see any impact to executive aviation. Our sales continue to move at a very aggressive pace.

Hi, Raquel. It's a pleasure to talk to you. Well, certainly.

Francisco Gomes Neto: Our sales continue to move at a very aggressive pace. So far, we aren't seeing any impact, even though we do recognize that this is a very tough situation. That's why we are monitoring very closely. I mean, we are paying close attention to all processes related to efficiency and cost management. We just wanna be prepared for any impact that can be foreseen in the future.

The increase in fuel cost.

Will impact the cost of the airlines.

Speaker #15: And so far we aren't seeing any impact. Even though we do recognize that this is a very tough situation. That's why we are monitoring very closely but I mean, we are paying close attention to all processes related to efficiency and cost management.

And also some expansion plans. And so we are, we're seeing now many of the airlines

cutting.

Cutting costs and canceling flights while the situation.

Speaker #15: We just want to be prepared for any impact that can be foreseen in the future. Thank you. Thank you, Francisco. And congrats once again.

Raquel Brandão: Thank you. Thank you, Francisco, and congrats once again.

Speaker #16: The next question is from Kristine Favreau. From Valor Economico. Please go ahead. Hello everyone. Can you hear me okay? Yes. Yes, we can, Kristine.

Francisco Gomes Neto: The next question is from Cristian Favaro from Valor Econômico. Please go ahead. Hello, everyone. Can you hear me okay? Yes. Yes, we can, Cristian. Well, thank you for taking my question. Before anything else, congratulations, Felipe, on your new position, and welcome. I have a question about production. During the last calls, Francisco, you've always said that it is your plan to spread out production a bit more because it used to be a bit more concentrated at the end of the year. These results we've seen in Q1, do you consider them to be success from that plan, and will we see production more spread out along Q2 and Q3? Thank you. Excellent question, Cristian. Yes, it is. This year, we will distribute production better between H1 and H2.

Speaker #16: Well, thank you for taking my question. Before anything else, congratulations Felipe on your new position and welcome.

Is still around us. We are monitoring it, very closely. Our commercial Aviation team is looking at every close, but so far, we have seen any impact. We haven't seen any customer postponing their sales campaigns, or they haven't even asked us to delay the delivery of aircraft. That's why we are looking at it very close. On the executive side, we are not seeing any impact, the the number of hours flown. I mean, it it is reaching record levels month after month. So, therefore right now we don't see any impact to Executive Aviation our sales continue to move at a very aggressive pace.

And so far.

We are.

Speaker #17: I have a question about production. During the last call, Francisco, you've always said that it is your plan to spread out production a bit more because it used to be a bit more concentrated at the end of the year.

Seeing any impact even though we do recognize that this is a very tough situation, that's why we are monitoring very closely.

but,

Speaker #17: So these results we've seen in Q1 do you consider them to be success from that plan? And will we see production more spread out along the second and third quarters?

I mean, we are paying close attention to all processes related to efficiency and cost management. We just want to be prepared for any impact that can be foreseen in the future.

Thank you. Thank you, Francisco. And congrats once again,

Speaker #17: Thank you. Excellent question, Kristine. And yes, it is. This year we will distribute production better between the first and second halves of the year.

The next question is from Christine favaro.

From Valor economico, please go ahead.

Thank you. Hello everyone. Can you hear me? Okay.

Yes, yes, we can Christian.

Speaker #17: We'll still have a bit more concentration in the second half of the year. But much less so than we'd seen in previous years. And we're already looking at Q1 and Q2 next year.

Francisco Gomes Neto: We'll still have a bit more concentration in H2, but much less so than we'd seen in previous years. We're already looking at Q1 and Q2 next year so that we can improve distribution even more. We want to increase production in Q1 and Q2, H1, so we can level it out in H2. We're working hard on that. We're working hard at our plants to make sure that we are qualifying and preparing people, training them on robust processes so that they can do each task at the right time, and also working with suppliers so that they can deliver the right parts at the right time, and clients so that they can receive the aircraft across the year.

Well, thank you for taking my question before. Anything else. Congratulations Philippe on your new position and welcome.

I have a question about production.

Speaker #17: So that we can improve distribution even more. So we want to increase production in Q1 and Q2, first half of the year. So we can level it out in the second half of the year.

During the last call, Francisco, you've always said that it is your plan.

Speaker #17: We're working hard on that. We're working hard at our plans to make sure that we are qualifying and preparing people, training them on robust processes so that they can do each task at the right time.

To spread out production a bit more, because it used to be a bit more concentrated at the end of the year. So these results we've seen in Q1.

My last name is Blood. Do you consider them?

Speaker #17: And also working with suppliers so that they can deliver the right parts at the right time. And clients so that they can receive the aircraft across the year.

Success from that plan. And will we see production more spread out along the second and third quarters. Thank you.

Excellent question Christian. And yes, it is.

this year, we will

Speaker #17: But we've had good progress. So we should see even more progress in Q2. Q1 was very important because it was quite low last quarter.

Francisco Gomes Neto: We've had good progress, so we should see even more progress in Q2. Q1 was very important because it was quite low last quarter. We'll also have progress in Q2, which will ensure we have better production, distribution, and deliveries across the 12 months of the year. Fantastic. Thank you. The next question is from the chat from Pedro Bavuso, CBN Vale. I'd like to hear about the next steps with EVTOL, please. Good question. EVTOL. Well, we've been testing the engineering prototype. Tests have been great. You saw during the presentation, right? 59 flights and over 2 hours flight time. The next steps will be to transition to the cruise flights. People are getting ready for that. As of next year, we're going to start building the prototype so that we can be ready for certification.

distribute production better between the first and second halves of the year.

We'll still have.

a bit more concentration in the second half of the year, but

Speaker #17: But we'll also have progress in Q2 which will ensure we have better production distribution and deliveries across the 12 months of the year. Fantastic.

Much less so than we've seen in previous years and we're already looking at q1 and to next year, so that we can improve.

Speaker #17: Thank you. The next question is from the chat from Pedro Bafuzo, CBN Valley. I'd like to hear about the next steps with eVTOL, please.

Distribution even more. So, we want to increase production in Q1 and Q2, the first half of the year, so we can level it out in the second half of the year.

Speaker #17: Good question. eVTOL well, we've been testing the engineering prototype tests have been great. You saw during the presentation, right? 59 flights of and over two-hours flight time the next steps will be to transition to the cruise flights.

We're working hard on that. We're working hard at our plans to make sure that we are qualifying and preparing people training them on robust processes so that they can do each task at the right time and also working with suppliers so that they can deliver the right parts at the right time and clients so that they can.

Received the aircraft.

Across the air.

But we've had good progress, so we should.

See, even more progress in.

Q2 q1 was very important because

Speaker #17: People are getting ready for that. And as of next year, we're going to start building the prototypes so that we can be ready for certification.

It was quite low last quarter, but we'll also have progressed in Q2, which will ensure we have better production distribution. And delivery is the 12 months of the year.

Fantastic, thank you.

Speaker #17: So it's going very well. And we hope to see even more progress over the next few months. Not only in when it comes to the test and development of our products but also authorities ANAC, FEA, to prepare the certification process for these aircraft for commercial operations in the future.

Francisco Gomes Neto: It's going very well, and we hope to see even more progress over the next few months, not only when it comes to the test and development of our product, but also authorities, ANAC, FAA, to prepare the certification process for these aircraft for commercial operations in the future. Thank you. This concludes Embraer's conference for today. Thank you very much for joining, and have a great day.

Okay, the next question is from the chat from Pedro Bufo, CBN Valley.

I'd like to hear about the next steps with Eevee tall, please.

Good question EV tall. Well,

We've been testing, the engineering prototype tests have been great.

You saw during the presentation, write 59 flights of and over 2 hours flight time.

The next steps will be to transition.

to the

Cruise flights. People are getting ready for that and

as of next year, we're going to start building the prototypes so that we can

be ready for certification. So it's going very well, and

we hope to see even more progress over the next few months.

Not only when it comes to the test and development of our products, but also, uh, authorities, Anna.

FAA to prepare the certification process for these aircraft for commercial.

Operations in the future.

Thank you. This concludes Embrace conference for today.

Thank you very much for joining.

And have a great day.

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