Lucas Esteves

Lucas Esteves from Santander inquired about the significant increase in revenue from commercial contracts with suppliers (media space, product exposure), asking if this represents a structural change and its recurrence.

Answer

Operations Director Wlamir dos Anjos clarified that the effect is primarily accounting, stemming from a decision to shift from annual to biannual commercial contracts with suppliers. This increased balance sheet revenue but had a zero cash effect, as the amounts will be recognized over 24 months. He indicated that this biannual contract structure might be maintained in future renewals.

Lucas Esteves of Santander asked for an update on the potential KC-390 order from Poland and whether it would justify a new assembly line there. He also inquired about the implications of the WTO Agreement on Civil Aircraft for the ongoing U.S. tariff situation.

Answer

President & CEO Francisco Neto responded that the campaign in Poland is progressing positively. A local assembly line would be contingent on that order and other regional deals. Regarding the WTO, he deferred to U.S. officials but reiterated Embraer's advocacy for a return to zero tariffs via bilateral negotiations, citing recent positive precedents with other countries.

Lucas Esteves asked if the 2025 delivery guidance implies a change in product mix and specifically questioned the mix between E1 and E2 jets in Commercial Aviation.

Answer

CEO Francisco Neto stated that the overall product mix is not changing significantly, though an increase in Super Tucano deliveries will help Defense results. He confirmed there will be a slight shift toward more E1 deliveries in 2025 due to contracts closed last year. CFO Antonio Garcia added that the Super Tucano increase is the most notable mix change.