Shares of Embraer SA (ERJ) jumped 5% in pre-market trading on Tuesday following the release of its first-quarter 2025 earnings report. The Brazilian aerospace company posted robust revenue growth and reaffirmed its full-year guidance, signaling strong momentum in its business operations.

Embraer reported Q1 revenue of $1.103 billion, in line with analyst expectations and marking a significant 23% increase compared to the same period last year. This performance represents the company's best first quarter since 2016. The strong top-line growth was driven by a 72% year-over-year increase in Defense & Security revenues, highlighting the diversification of Embraer's business segments.

Profitability also showed improvement, with adjusted EBIT reaching $62.0 million and a margin of 5.6%, up from 0.8% in Q1 2024. This margin expansion demonstrates Embraer's ability to translate revenue growth into improved operational efficiency.

Investors were particularly encouraged by Embraer's record-breaking firm order backlog, which reached $26.4 billion in Q1 2025, surpassing the previous all-time high set in the previous quarter. This strong backlog provides visibility into future revenue streams and underscores the continued demand for Embraer's aircraft across its commercial and executive aviation segments.

The company reaffirmed its 2025 guidance, projecting commercial aviation deliveries between 77 and 85 aircraft, and executive aviation deliveries between 145 and 155 aircraft. Embraer also maintained its outlook for total company revenues in the range of $7.0 to $7.5 billion, with an adjusted EBIT margin between 7.5% and 8.3%.

The positive earnings report and reaffirmed guidance have bolstered investor confidence in Embraer's growth trajectory, driving the pre-market stock surge. As the aerospace industry continues to recover from the pandemic-induced slowdown, Embraer's strong performance and robust order backlog position it well for sustained growth in the coming quarters.