Good morning, ladies and gentlemen, and thank you for being here. This call is being recorded, and its broadcast is intended exclusively for participants. My name is Gui Paiva, and I serve as the Head of Investor Relations, M&A, and Venture Capital for Embraer. I want to welcome you to our fourth quarter of 2025 earnings conference call. The figures we present include non-GAAP financial information to assist investors in reconciling Eve's financial details with Embraer's IFRS standards. Please note that Eve's results will be discussed in the company's conference call. All numbers are reported in U.S. dollars, which is our functional currency. This call may include forward-looking statements based on Embraer’s expectations and financial market trends, which carry uncertainties that might lead to actual results differing from those mentioned. The company does not assume any obligation to publicly update forward-looking statements, except as required by applicable rules. For further financial information, we encourage you to review the publications filed with the Brazilian Comissao de Valores Mobiliarios or CVM. Participating in today's call are Francisco Gomes Neto, President and CEO of Embraer; Antonio Carlos Garcia, Chief Financial Officer; and myself. This call will consist of three parts: first, management will present the company's Q4 results; second, we will have a Q&A session for investors; and finally, we will hold a dedicated Q&A session for the press. I now turn the call over to our President and CEO, Francisco Gomes Neto. Please proceed, Francisco.

Thank you, Gui, and good morning and good afternoon to everyone. It is a pleasure to be here with you to share Embraer's fourth quarter and full year 2025 results. 2025 was a remarkable period for our company. We met our deliveries guidance on the operational side, while we outperformed the expectations on the financial side. This performance reflects a longer trend. Embraer has been able to deliver double digits of revenue growth over the past 3 years despite the supply chain challenges. 2025 was also a marquee period for the E2 program with strong sales across all continents, which has consolidated further the E2 platform as a benchmark in the small narrow-body segment. At the company level, our record revenue and backlog provides strong visibility to investors about our ability to deliver sustainable growth for many years to come as we have robust processes and governance in place. We have made significant progress across the production chain through closer collaboration with suppliers, process digitalization and investments in artificial intelligence tools. The production level initiatives have now been extended across all our platforms, and they should help support production stability in 2026 and onwards. We are well positioned in strategic markets, supported by partnerships under discussion with global players in India, Mahindra and Adani Group, and in the U.S., Northrop Group. These partnerships reinforce our strategic position and support long-term growth potential across both our Commercial Aviation and Defense segments. To conclude, all our business units are performing very well with solid execution and bigger backlogs. During the quarter, we saw a strong sales momentum across all business units. In Commercial Aviation highlights included new orders from TrueNoord for 20 E195-E2s, Helvetic Airways for 3 E195-E2s as well as 4 E175 orders from Cote d'Ivoire. In Executive Aviation, revenues reached an all-time high of approximately $750 million as we delivered 53 business jets, the highest number ever in a single quarter. In Defense & Security, we reinforced our global footprint with Sweden's order for 4 KC-390 plus 90 options. And Portugal signed a 6 aircraft order along with 10 options for NATO countries. Finally, in Service and Support, we signed an E195-E2 pool program with Airlink and the maintenance service extension with the Republic for its E1 fleet. Let me now walk you through our sales performance for the full year. During the 12 months, Commercial Aviation recorded 157 E2 new orders across all continents, plus 140 options. In addition, the E1 program reinforced its market position with 64 new orders plus 68 options. These achievements increased the division's backlog to $14.5 billion with an impressive 2.8:1 book-to-bill ratio. In Executive Aviation, total sales reached approximately $2.3 billion, supported by strong demand across the portfolio, including the continued success of the Phenom 300, now the world's best-selling light jet for 14 straight years. The backlog in the division now stands at $7.6 billion, supported by a consistent 1.1:1 book-to-bill ratio. Defense & Security achieved another strong year with 5 KC-390 aircraft sold to 2 NATO countries, plus 19 additional options and 10 A-29 Super Tucanos sold to Uruguay, Panama, and Sierra Nevada. The business unit closed the quarter with a $4.6 billion backlog and a 1.4:1 book-to-bill ratio. Finally, in Service and Support, the sales momentum remained strong. During the year, the program added approximately 75 aircraft and the Executive Care program signed another 37 new contracts. As a result, the business unit finished the quarter with a $4.9 billion backlog and a 1.2:1 book-to-bill ratio. Together, these results drove a consolidated 1.7:1 book-to-bill ratio for Embraer in 2025. I will now move on to our operational results for the year, and my comments will reflect year-over-year comparisons. In Commercial Aviation, revenues increased by 7%, driven by higher volumes. The adjusted EBITDA margin improved from 2.5% to 2.7%, supported by lower expenses. Executive Aviation, revenues increased a significant 25%. The adjusted EBITDA margin increased from 11.7% to 12%. The gains recorded from higher volumes, pricing, and operating leverage more than offset the negative impact of U.S. tariffs. Moving to Defense & Security. Revenues grew 36%, mainly because of higher KC-390 and A-29 Super Tucano volumes. The adjusted EBITDA margin improved from 6.2% to 7.9% as a consequence of operating leverage and client mix. In Service and Support, revenues rose 18%, driven by higher volumes and the ramp-up of the OGMA GTF engine shop. Adjusted EBITDA margin decreased from 16.5% to 15.5%, mainly because of the ramp-up of new operations. Before I conclude, I would like to share a brief update on Eve's steady progress. The first flight of Eve's eVTOL prototype in December 2025 marked an important milestone. Since then, our full-scale prototype has run 28 missions for a total of more than 1 hour in overflights. The program continues to advance through flight tests towards certification in 2027.

Thank you, Francisco. Good morning and good afternoon to everyone. I'd like to start by highlighting that despite a year marked by challenges and volatility, the company remains focused on disciplined execution, delivering results in line with its commitments. Let's now take a closer look at our financial results for the fourth quarter and full year 2025. All my comments will be based on year-over-year comparison unless otherwise noted. Turning to the next slide, I will start with deliveries. In the last quarter, Embraer delivered 91 aircraft, 32 commercial jets, 53 executive jets and 6 defense-related. This represents a 21% increase, with Commercial Aviation deliveries up 3% and Executive Aviation up significantly at 20%. More importantly, for the full year, we delivered 78 jets in Commercial Aviation for a 7% increase and in line with our 77 to 85 aircraft guidance for the period. Meanwhile, in Executive Aviation, we delivered 155 jets, up a relevant 20% during the period and at the high end of our 145 to 155 aircraft guidance for the year. In Slide 12, our backlog and revenue. Our company-wide backlog reached $31.6 billion during the quarter, up a significant 20% and higher than our previous record. The backlog for Commercial Aviation and Defense & Security increased by 42% and 10%, respectively, for support by 7% and for Executive Aviation by 3%. In addition to our firm backlog, we currently have approximately $20 billion in options held by our customers. These are not included in our backlog, but they represent a meaningful upside potential over the coming years. As these options are exercised, they could support a significant expansion of our backlog, potentially profiting towards $50 billion over time. Beyond the size of the backlog, it is also important to focus on its quality and overall composition. The current backlog reflects a more attractive customer mix, which positions the company for a more favorable firm margin profile perspective over time. Any financial impacts from this mix will continue to depend on execution, delivery phasing, and external factors. Moving on to revenues. Our top line increased 15% and almost reached $3 billion in Q4 2025. From a business perspective, our revenue remained well diversified across segments. Commercial Aviation accounted for 37%, Executive Aviation approximately 30%, Service and Support around 20%, and Defense & Security 13%. Our top line of $7.6 billion for the full year was above the high end of our guidance, an increase of 18% when compared to 2024. Moving to the next slide, please. We generated $298 million in adjusted EBITDA in Q4 2025 with an 11.3% mark and $889 million in the year with an 11.7% mark, compared to a 12.1% margin a year ago if we exclude the one-time impact of the Boeing agreement. Slide 14, adjusted EBIT. Now adjusted EBIT was $231 million for the quarter with an 8.7% margin compared to 11.5% in the same period a year ago. As we highlighted in our last earnings call, we expected a relevant impact from U.S. imported tariffs in Q4. In addition, we faced additional infrastructure-related costs, which weighed on margins. Tariffs totaled $27 million during the period and nonrecurring infrastructure costs reached $20 million. For the year, we generated $657 million with the same 8.7% margin, in line with last year if we exclude the one-time Boeing gift and surpassing the upper end of our 8.3% guidance for 2025. This performance was achieved despite the impact of U.S. import tariffs and reflects our discipline in our ongoing cost reduction initiatives and efficiency gains. Let's move now to the next slide. Embraer generated $738 million in adjusted free cash flow in the quarter, mainly supported by operations, a higher number of aircraft delivered and sales campaigns. For 2025, we generated $491 million in adjusted free cash flow and helped the company cover on average close to 60% of its EBITDA in free cash flow over the past 3 years. The 2025 figure compares to $676 million in 2024, which includes a one-off $150 million inflow related to the Boeing agreement. We exceeded our guidance of $200 million or higher, supported by our continued efforts to reduce working capital requirements. Looking now at our investments, excluding Eve, we allocated almost $100 million during the quarter. The figure includes $27 million in CapEx, $34 million in addition to intangibles, $12 million in the Pool program to support new contracts, and $27 million in research. On a yearly basis, Embraer stand-alone invested a total of $383 million in 2025, 10% lower compared to $428 million in 2024. Our capital allocation continues to be geared towards segments with higher returns, such as Executive Aviation and Service and Support, mainly in the U.S. We continue to see our CapEx run rate at close to $400 million per year in the near future. In Slide 16, adjusted net income. Our adjusted net income was positive $153 million for the quarter, supported by a 5.8% adjusted margin compared to 7.5% in the same period last year. Meanwhile, we ended the year with $253 million in adjusted net income compared to $461 million in the prior year. We finished the year with a 3.3% adjusted margin. It was lower than the 7.2% recorded in 2024. I would like to emphasize the decline was mainly driven by the one-time $150 million impact from the Boeing agreement, less favorable net results, and U.S. import tariffs. Turning to the next slide, let me walk you through the financial bridge from our reported EBIT in 2025 to both reported and adjusted net income. We finished the year with $608 million in EBIT after accounting for $340 million in net financial mainly inflated by the mark-to-market gains of our share price in our stock-based compensation plan, $91 million in tax credit, and $7 million in minority interest. We arrived at $352 million in reported net income. To arrive at adjusted net income, we exclude extraordinary items. These adjustments included a negative $137 million related to deferred taxes, which was partially offset by a positive $38 million from non-recurring results. With that, we get $253 million in adjusted net income for the year. Looking at the evolution of our earnings per share, we have seen solid sequential improvement over the past few years. EPS was negative $0.2 per ADS in 2021, improved to $1.4 per ADS in 2024 if we exclude the one-off related effect and reached $1.9 per ADS in 2025. This trajectory highlights the structural improvements in profitability and the progress we have made in strengthening the company's earnings profile over the past few years. In Slide 18, financial position. We continue to strengthen our balance sheet throughout the year, and as a consequence, our liquidity position has increased significantly, our stand-alone net debt decreased by $220 million, reaching a net cash position of $109 million at the end of 2025. The solid position of our balance sheet ensures the company remains well-prepared to navigate potential volatility ahead. Consequently, our leverage position, excluding Eve improved further from 0.1x net debt to EBITDA to 0.1x net cash to EBITDA by the year-end. As a reminder, in the third quarter, we announced a new liability management initiative, which was fully executed. The average maturity of Embraer's debt without Eve increased to 9.1% from 3.7 years, significantly improving our debt maturity profile. Today, 96% of our debt is long-term, which provides us with financial flexibility. Importantly, these actions also led to a reduction in our average cost of debt, which declined to 5.5% from 6.2%, further strengthening our financial profile. Slide 19, shareholder remuneration. We declared a total of BRL 568 million in 2025 in shareholder remuneration, combining interest in equity and dividends. This amount corresponded to BRL 0.78 per share and represents a dividend yield of approximately 0.9%. As a reminder, this distribution should be complemented by an additional dividend to ensure compliance with the minimum 25% net income distribution required under Brazilian corporate law. The full amount will be paid in a single installment following our 2026 Annual Shareholders Meeting. Slide 20, guidance. Before I present our 2026 guidance, I would like to remind you, Embraer has delivered its financial estimates year in and year out since 2021, reflecting a disciplined approach to planning and execution. Now to conclude my presentation, let me go over the details of our 2026 guidance. In terms of operations, we forecast Commercial Aviation should deliver between 80 and 85 aircraft. Meanwhile, for Executive Aviation, we forecast 160 to 170 jets, representing a year-over-year increase of approximately 6% in both segments based on the midpoint of the range. Turning to financials. We forecast consistent double-digit growth. We estimate the top line to settle between $8.2 billion and $8.5 billion, with the midpoint of the range, 10% higher than what we generated last year. We forecast EBIT margin between 8.7% and 9.3% for the year, which would imply around $750 million at the midpoint of the range and approximately 15% higher than the adjusted $657 million EBIT generated in 2025. Finally, if we move to free cash flow generation. We estimate an adjusted free cash flow without Eve of $200 million or higher for the year. Remember, our midterm goal is to convert 50% of our EBITDA into free cash flow. If we look from 2024 to 2026, we should generate around $1.4 billion or more in free cash flow, which is 50% of around $2.8 billion implied EBITDA by our 2024 and 2025 and our 2026 guidance. It is important to highlight this guidance reflects our assessment of the operating environment prior to February 2023 before the latest round of changes to U.S. import tariffs. We are taking a conservative approach at this point in time because of decreased policy uncertainty and prefer to wait for additional visibility before making any changes to our outlook. We will update or reiterate our 2026 guidance on a quarterly basis as the year goes by. Let me stop here, and now I hand it back to Francisco for his final remarks. Thank you very much.

Thank you, Antonio. To conclude, 2025 clearly marked the consolidation of our strategy across all businesses. In Commercial Aviation, record orders supported the consolidation of the E2 platform as they reinforced its global relevance and provided long-term visibility for the business. In Executive Aviation, strong retail and fleet demand supported by higher delivery volumes reflected the strength of our portfolio, which was further reinforced by the recent announcement of the next generation of the Praetor 500E and 600E. In Defense & Security, we continue to advance KC-390 campaigns globally, including key strategic opportunities. In Service and Support, the growing footprint of our operations is strengthening our ability to generate recurring revenues. Our continued focus on driving efficiency and financial discipline across all areas of the company is paying off as our best-in-class operations and services that support our customers. Looking ahead, we expect substantial growth over the midterm while we prepare the company for a more ambitious long-term expansion, supported by a new generation of products and technologies, always grounded in our culture of safety first and quality always. With that, I would like to move on to the Q&A session.

We remind you that this conference is being recorded and is intended exclusively for the participants of this event. It may not be reproduced or retransmitted without permission from Embraer. This call is being conducted in English with translation available in Portuguese. I would like to make a brief announcement for Portuguese speakers. The first part of the Q&A session will be exclusively for equities research analysts and investors, followed by a segment for the press. The first question comes from Marcelo Motta with JPMorgan.

The question is regarding the strategic partnerships that the company has been announcing. So just wondering if you can provide us an update on the stage of it once in India for the commercial and for the defense and also in the U.S. for defense.

Thank you, Marcelo. Francisco speaking. Good question to start the Q&A today. So yes, we are focused on strategic partnerships to support long-term growth for Embraer. The 2 main ones are India, where we have been working on 2 fronts: the MTA, mid-transportation aircraft with India Air Force that we've been working for a few years already and a more recent partnership, this one with Mahindra. So we expect an RFP from the customers still this year. The second one is with the Adani Group is to focus on the executive civil aviation to improve connectivity between smaller cities in India. Both opportunities can bring a relevant business and potential growth for Embraer. So again, in defense, we expect RFP for this year. And civil aviation, we are still building the case, but we have said that if we get orders still in 2026, we can do the rollout of jets by 2028 in India. In the U.S., we announced the partnership with Northrop Grumman to develop the boom capability for the C-390 as an option to complement the tanker fleet of U.S. Air Force with our KC-390. We do not have a timeline defined yet, but we are working very hard. We recently took the KC for demonstrations in the U.S.

This is Gaby speaking on behalf of Kristine. I would like to follow up on the partnership with Northrop Grumman regarding the addition of boom capability to the KC-390. Can you share more details about the structure of this partnership and how responsibilities are divided strategically? How important is the addition of a boom for enhancing the competitiveness of the KC-390, especially considering the current circumstances? Additionally, how should we assess the potential size of the opportunity as it develops over time?

Thank you for the questions, Kristine. So at this point, we have signed an MOU with Northrop Grumman and the main focus is the collaboration to enhance the capabilities of the KC-390 Millennium focusing on the integration of an autonomous boom refueling system and agile combat employment solutions. This is designed to meet the future needs of U.S. Air Force and allied nations, not only U.S. We do not have a time frame defined yet, but the main purpose is really to engage this discussion with the U.S. Air Force and have the KC-390 complement the fleet they have. We do not see this collaboration; our strategy is based on the premise that it does not compete with the KC-46 or any other strategic tanker but rather, it's a complementary capability. Our intention, if we get a sizable order, this aircraft will be assembled and produced in the U.S. We do not know the size yet, and we do not have a clear view about the time frame, Kristine.

Great. And just a quick follow-up, if I can. Can you just provide a quick update on the supply chain environment across both commercial and Executive Aviation? What are the major constraints you're still seeing? And what areas have you seen improvement in?

Last year, we encountered some challenges in the supply chain, but we managed to address these issues and deliver the aircraft. This year, we notice improvements in the supply chain, although there are still some bottlenecks. We aim to be more proactive this year than we were last year to anticipate potential issues and respond more effectively. We have already begun this effort in January, and we are monitoring the situation closely. We are optimistic that this year will be better than last year.

The next question comes from Myles Walton with Wolfe Research.

Great. I was hoping you could touch on the margin outlook by segment, maybe just a little bit more color below the surface. Pretty good to have margin expansion. I think service and support probably going against you. I think I heard that the tariffs are in the guidance, and I would imagine those would be incremental year-on-year, given a full year of effect. So maybe just talk to what the margins would be without tariffs? And then also any color of where the uplift is happening within the segments?

Myles, thanks for the question. This is Gui. I think one way to kind of think about the outlook for margins is to account that last year, we paid $54 million in tariffs. We are carrying over around 2025 from inventory into '26. So if you adjust for that, we are probably looking for something close to 75 to 100 basis improvement over time as both of them unwind.

Myles, it's Antonio speaking. Just to complement, I would say, overall picture, if you see what we have reported and the trajectory that we are right now and the huge impact on tariffs was in Executive Aviation, and we delivered the same number we delivered last year and percentage-wise, which means it doesn't matter if we have tariffs or we have a crisis, we always find a way to compensate. If we take service and Executive Aviation, it's already in double-digit space on the margin profile, and we are moving towards defense, I would say it's up to speed also to go also to double digit. I would say, then we keep on our challenge here with Commercial Aviation to move to mid-single digit. Overall, on a consolidated level, we are coming closer to double-digit EBIT margin for this company here.

Okay, great. And then maybe just one other one on cash flow performance in the fourth quarter. Is this similar to last year where some of the defense orders came through with higher advances? Or were there other attributes driving the performance?

I would say there were some effects. We delivered more than 90 aircraft in Q4, particularly in commercial aviation, where we collect and pay out more cash due to the size of the advanced payments upon delivery. I would point out two or three effects, as there were many deliveries concentrated in Q4. Fortunately, we received some final anticipation and advanced payments from defense customers, and we also had a successful sales campaign in December in Executive Aviation. All these factors contributed to the positive developments in Q4. As you know, it’s challenging for us to make predictions, which is why you see the guidance of $200 million or higher, but it was quite similar to what we experienced in 2024.

The next question comes from Noah Poponak with Goldman Sachs.

I wanted to follow up on the delivery projections and profile. I understand that in the commercial sector, you've mentioned plans to exceed 100. It seems like the supply chain is still a challenge. It's somewhat unexpected to see the lower end of the guidance remaining flat. Could you discuss the remaining obstacles to reaching 100 and your timeline for achieving that? Additionally, regarding the executive side, similar questions apply. I know you've mentioned the possibility of expanding capacity to reach 200. What are your current thoughts and timeline for hitting those figures on the executive side?

Thank you, Noah. Francisco speaking. Yes, I understand your point, but we are very focused this year to be from the mid to the high end of the guidance in terms of commercial aviation deliveries. I said before, we believe we are better prepared this year with the supply chain to get there while we are preparing the ground to reach 100 aircraft, probably in 2027. We are working in that direction and not confirmed yet for sure, but we are working in that direction to create capacity to be there by 2027, maximum 2028. We believe 2027 will be feasible. Same on the Executive Aviation. We are working on 2 fronts. We are expanding capacity in some bottlenecks of the production. We have been doing that already for a couple of years while we work on improving efficiency in our production lines. Now we produce one Praetor or one Phenom in half of the time that we used to do back in 2021. We are moving fast to reach those production targets in the next years.

And we have orders for that.

And we have orders for that with the best news.

Okay, great. And how does the rate of growth in services that you've embedded in this initial 2026 guidance, how does that compare to what you saw in 2025?

Noah, this is Antonio speaking here. It's nice to talk to you again. We are seeing Service and Support also in the double-digit space in regards to growth, I would say. To be honest, it's growing faster than the aircraft division because we have other contracts as well. That's why we see even a fast speed growth for Service and Support comparing to the aircraft delivery on the other 3 segments. I would say, we expect more than double digits for Service and Support to move forward for the next 2, 3 years.

The next question comes from Lucas Marquiori with BTG Pactual.

I just wanted to follow up on the tariff discussion and actually try to understand what's the situation there. I know there are different sections of investigations and that, I mean, our latest understanding was that this is 0 now. I just wanted to confirm that. And for how long should it remain that way? Or what's the bureaucratic there that we need to see happening for that to change? And also, if there is any difference in tariffs for Embraer versus its main rivals or its main peers, if there's any kind of a dislocation of competitiveness or actually an improvement in competitiveness because of the 0 tariffs right now. Just wanted to hear your thoughts on that one.

Thank you for your question, Lucas. We can confirm that all Embraer aircraft engines and parts will be exempt from the 10% tariffs starting February 2024. While we still have some inventory in the U.S. that incurred the tariff, we plan to manage that over the course of the year, and it is already accounted for in our forecasts. We appreciate the establishment of a level playing field in our industry since Embraer was previously the only manufacturer subject to tariffs on aircraft exports. This decision will be advantageous for our U.S. customers, allowing airlines to proceed with their fleet renewal plans, and we will continue sourcing a significant amount of U.S. parts, as more than 40% of our aircraft consists of U.S. content. Overall, I view this decision as very positive for Embraer as well as for our U.S. customers and suppliers. What was the timeframe you were inquiring about?

232, 301. We expect this to be a long-term decision. Regarding the sections, 232, 301, we are now monitoring the topics very closely while we keep focus on our regular business. So far, we do not expect any big changes, but this geopolitical situation is a little volatile. But let's see; we are now very optimistic that this will remain, and we will continue to reinforce our position and the aerospace industry position in the U.S. as well.

The next question comes from Alberto Valerio with UBS.

I would like to talk about the orders for the year. What should we expect? Should we expect 1x book? Or do you think that it could be even more, but the guidance of commercial and executive is still having some supply issues included?

Alberto, Antonio speaking. You asked about our expectation for new sales or just...

I didn't get your question.

What should we expect in terms of book-to-bill for the year? Will it be a one-time occurrence, or can we anticipate more than what was initially guided, particularly concerning the commercial jets given that there are still some supply issues this year?

We had an excellent year last year in terms of E2 sales, achieving 157 new sales along with 140 options. This gives us a lot of confidence in the platform's future, and we are continuing to sell E1s as well. This year, we are preparing to boost our production output for E-Jets in the coming years. We are actively running various sales campaigns and expect the book-to-bill ratio to exceed 1:1 for this year in terms of sales. Regarding the supply chain, we are collaborating closely with suppliers, particularly the pacers, to address any delivery issues. For this year, we anticipate hitting the mid to high end of our guidance and are positioning the company for increased E-Jet production in the years ahead.

The next question comes from Andre Mazini with Citi.

I have two questions. The first is about defense and geopolitics, which is currently a significant issue. Do you think it would be beneficial to accelerate defense applications for Eve? Would this lead to an increase in letters of intent, pre-delivery payments, and possibly help reach breakeven sooner? I understand that Eve has its own earnings call, but I believe this is quite important for Embraer as well, so I'd like your thoughts on that. My second question is regarding the recently announced buyback program. Does this indicate that over the next 12 months, during the program's duration, you prefer to allocate capital towards Embraer stock instead of investing in large new projects like a new airframe? Additionally, how do you view the trade-offs between buybacks, reinvesting in the company, and new developments in aircraft and airframes?

Thanks, Andre. I answer number one, and then Antonio and Gui will answer number two. So Eve now, we are very focused on the certification process of the Eve, the product we have, the EV 100. I know they are discussing all the opportunities, but at this point in time, they are really focused on the certification of the program until the end of 2027. I think for more questions, I recommend you go to the Eve presentation; they will give you more details.

And Antonio speaking. In regards to the buyback, it's quite simple. We are considering replacing the active equity swap we have in the market. Basically, we are just changing, reducing the active swap into shares from the treasury in order to hedge our long-term incentive program. It's going to be much faster than 12 months. It's probably going to take 1 or 2 days to be concluded. We are not increasing the shares, just changing from active swap to a share buyback. Today, the company does not engage in this buyback regarding total shareholder remuneration, just to hedge the long-term incentive plan.

And also just to complement, the company continues to invest heavily in the businesses that we have with higher ROIC, which includes Executive Aviation and services.

The next question comes from Luiza Mussi with Safra.

Just a follow-up question because we saw some media reports yesterday indicating that India has opened a bid for like 60 units from military aircraft and the total contract value will be $11 billion. I mean, could you share your perspectives on this deal in terms of how you expect the competitive dynamics to evolve? And how could you differentiate yourself from the other competitors?

Thanks for the question, Francisco here. We are very excited about the opportunity because we believe our product, the KC-390, offers the best value proposition for India. It is highly competitive and modern, fitting well within that segment. We have been collaborating with Mahindra on various initiatives to meet their Made In India expectations. We are committed to winning this business, which would represent a significant milestone for the KC program. The initial plan in India is to acquire between 40 to 80 aircraft, with 60 being the average. This will create a revenue opportunity worth billions of dollars.

The next question comes from Lucas Laghi with XP Investments.

I have two quick follow-ups. First, regarding the Services division, the margin performance is very strong, and I would like to understand the main drivers this quarter. You mentioned materials, for example. Should we expect to maintain around a 20 percent EBIT margin going forward? Is this a reasonable assumption for the coming years? Secondly, about the guidance for 2026 concerning the margin, we estimate about $90 million of EBIT impact considering a 10% tariff, which you mentioned is part of your guidance assumptions. Can you confirm if this is the level of impact we could view as an upside, given the current 0% tariff environment? I'm trying to gauge the potential upside regarding EBIT this year in relation to the tariff issue.

Lucas, this is Antonio speaking. Thanks for the nice question. To be honest, I would love to take the 20% margin for Q4 for the Service division and move forward, but not now. What happened in Q4, we had a lot of bad costs throughout the year and then it has been compensated in Q4 also with compensation for suppliers, etc. That's why we see this nice 20% margin in Q4. For sure, we are not happy with 15%. We are moving towards a bigger number, but I would say for your assumption here, 15%, 16% is okay to move forward. But we do see improvement, but not at the pace that we should assume already for 2026.

So I think for 2025, we paid $54 million. As I mentioned, we have about $25 million in inventory. So you can use that $80 million as a good proxy. But we're going to unwind that in '26 and in '27, right, because the inventory impact will hit us in '26 and will be only unwound in '27. I would expect 2/3 of the benefits to come in this year if the status quo is maintained for the tariff, and we hope it does, with the balance 1/3 being upside for '27.

Our next question comes from the chat and is from Andre Ferreira with Bradesco BBI. Congratulations on the results. The guidance assumes tariffs. So to confirm, if it is exempt, is there upside to the margin numbers? Would that translate in any way to the delivery guidance as well?

Andre, thanks for the question. I think we just answered that with Lucas in the previous question. So let's move on to the next, please.

The next question is also from the chat, and it's from Kristine Liwag. Following up on the supply chain question, there's a public dispute between Airbus and Pratt about engine deliveries. For your commercial delivery outlook in 2026, how much conservatism is built into your assumption? And is Pratt able to support?

Thanks for the question. Yes, I think as I said before, we have some bases that we are working on very closely in 2026. But I mean, we have been working in a very collaborative way with our suppliers, I mean, trying to help each other. Again, we are very confident that we will deliver the aircraft we are planning for the year, and we don't have any big issues with Pratt this year. They are doing that.

Thank you very much. This concludes the question-and-answer session for equity research analysts and investors. Now we will start the Q&A session dedicated to the press. First, we will answer questions in English, and then we will answer questions in Portuguese. We will also answer questions sent via the platform chat. The first question comes from Pablo Diaz.

Can you hear me?

Yes, we can.

Just wondering about the joint venture with Adani in India and the new production line for the E175. Wondering if that production line is going to be focused on the E1 and if there is any possibility for that line to later migrate to E2, providing the certification process is retaken.

Pablo, thanks for the question. At this point in time, we don't have a joint venture yet. We have signed an MOU with Adani to explore opportunities in civil aviation. At this point in time, the focus is on the E175 E1.

The next question comes from Curt Epstein with Aviation International News.

I was wondering if you could detail the impact on your Executive Aviation division by the tariffs over the past year.

I think the easy way to think is that out of the $54 million that we paid in 2025, about 80%, 85% of that was in our Executive Aviation division.

Starting April onwards. For the whole year, it should be something like $60 million to $70 million, but today, you are back to zero, Curt.

This concludes the question-and-answer session in English for the press. Our first question is from the chat by Nelson. We'll see the first Gripen being delivered on the 25th of March in Gaviao Peixoto. Congratulations, Bosco and the defense staff. Is Embraer going to be involved in the Gripen agreement in Colombia and other potential contracts?

Thank you for your question. No, we haven't established any contracts. However, we do have a good collaboration with Saab. We are working with them to cooperate and, if possible, to bring the assembly of these aircraft to Gaviao Peixoto because we have installed capacity. It would benefit us and them, but we don't have any subcontracts that we have entered into yet.

We have no audio from Mr. Nascimento. Our next question, which also came through the chat, is from Nelson Doring. How does Embraer view the landscape for the supply of raw materials like aluminum and titanium, which are critical for engines and avionics in both military and civil aviation?

Thank you again for your question, Nelson. In 2026, we expect to see an improvement in supply compared to 2025. While there will still be some challenges regarding parts, raw materials are not a concern for us. We feel quite confident about our current inventory of raw materials. Additionally, we are closely monitoring another aspect to ensure not only the total production for the year but also improved aircraft production throughout the year. Since the beginning of the year, we have been working closely with suppliers, and we are optimistic about aircraft deliveries for 2026.

Next question from Mr. Nascimento for Vale Trezentos e Sessenta News.

I apologize for my mistake. It was something related to my own equipment. I have three basic questions, Francisco. The first question is whether Embraer faced any challenges during the period when tariffs were implemented. I know you had a meeting with representatives of the Brazilian Foreign Relations Office in New York to discuss the issue of tariffs. So that's my first question. If you prefer, I can ask the other two questions later.

Embraer did not directly participate in that event. We simply followed up, but we were not present at the time. Our role was to facilitate the event, but we did not have any direct involvement.

My second question is about the recent decision by the U.S. courts regarding the President's ability to impose tariffs, which they deemed unconstitutional. Do you think Embraer might attempt to recover the tariffs that were improperly charged? Additionally, how much more in tariffs was collected?

In terms of recovering the money paid in tariffs, we are monitoring the situation, trying to understand what our peers will do and what kind of outcome they will achieve. Based on that, we will decide our next steps. So far, we have already paid $80 million in tariffs.

Okay. So finally, Francisco, we see the war escalating in the world and countries trying to strengthen their defense. I mean, Embraer with KC and Super Tucano should fit into that scope. My question is whether Embraer is developing or considering developing new equipment for the defense sector to potentially address some global needs.

Our focus is on selling our equipment. KC is a new product that was launched in 2019. We are concentrating on the sales of Super Tucano and some of our equipment from Atech, one of our subsidiaries. However, there is no development currently taking place.

Our next question comes from Chandu Alves from Ovale, who asks about the deadlines for the RFP regarding 60 jets for India. He wants to know how long the process will take, when we will receive an answer, and who the competitors are.

We're monitoring the situation, but we can't dictate the deadlines. The deadlines will be set by the clients in India. We anticipate receiving a request for proposals this year, which is a crucial phase for aircraft sales, as competitors will also be submitting their proposals, and they will have some time to review them. Currently, we do not have any visibility regarding that process. Our competitors include Lockheed Martin in the U.S. with the 630 hectare and Airbus in Europe with the A400.

Our next question comes from Leda Alvim, Bloomberg News.

Could you please confirm the values we currently have for paid tariffs? It would be helpful if you could break that down by segment.

Leda, this is Antonio. We have paid a total of $80 million, with 85% allocated to Executive Aviation and the remainder for service and support. This total has been paid since April 2025. Since February 2024, we have returned to zero, but we are uncertain about what will happen moving forward.

Next question also from the chat from Paulo Ricardo Martins with Folha de Sao Paulo.

How can the war in Iran impact Embraer? Could it jeopardize the delivery of aircraft for the Middle East?

Ricardo, thank you for your question. At the moment, we are monitoring the situation very closely. Our main focus is on the people we have in the region as they are experiencing the situation daily. We are addressing their needs and the expectations of their families. We are also supporting our suppliers, both direct and indirect, in the region. So far, we haven't encountered any critical issues that could affect our deliveries. We are not seeing any impacts on deliveries or short-term sales. Our focus now is to keep monitoring the situation to help us take timely actions so that we can deliver everything we are launching this year.

Ladies and gentlemen, thank you very much. That concludes the Q&A session of today's conference call. This also marks the end of Embraer's conference call. Thank you for joining us, and have a very good day.