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EmbraerBUE:ERJ 51 Gross Margin % is 17.99% as of Mar. 2026, which is 9% above its 10-year median of 16.49. GuruFocus rates BUE:ERJ with a GF Score™ of 51/100 and a GF Value™ of ARS89,213.35. The stock has 3 warning signs investors should review. Among 345 Aerospace & Defense companies, Embraer ranks worse than 73.33% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Embraer's Gross Profit for the
three
months ended in Mar. 2026 was ARS363,823 Mil. Embraer's Revenue for the
three
months ended in Mar. 2026 was ARS2,022,841 Mil. Therefore, Embraer's Gross Margin % for the quarter that ended in Mar. 2026 was 17.99%.
The historical rank and industry rank for Embraer's Gross Margin % or its related term are showing as below:
BUE:ERJ'
s Gross Margin % Range Over the Past 10 Years
Min: 11.7 Med: 16.49 Max: 20.09
Current: 17.68
During the past 13 years, the highestGross Margin % of Embraer was 20.09%. The lowest was 11.70%. And the median was 16.49%.
BUE:ERJ's Gross Margin % is ranked worse than 73.33% of 345
companies
in the Aerospace & Defense industry
Industry Median: 26.7
vs BUE:ERJ: 17.68
Embraer had a gross margin of 17.99% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Embraer was 5.50% per year.
Embraer (BUE:ERJ) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Embraer had a gross margin of 17.99% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Embraer Gross Margin % Related Terms
Embraer Gross Margin % Historical Data
* Premium members only.
The historical data trend for Embraer's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BUE:ERJ vs SPCX, GE, RTX: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Embraer's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Embraer Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Embraer's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Embraer's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Embraer (BUE:ERJ) has a Gross Margin % of 17.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Embraer and its competitors. This is near median its historical median of 16.49. Over the past decade, Embraer's Gross Margin % has ranged from 11.70 to 20.09. According to the industry distribution chart, Embraer ranks #253 out of 345 companies in the Aerospace & Defense industry, placing it in the top 73.3%.
Is Embraer's Gross Margin % too high?
Embraer's current Gross Margin % of 17.99% is near median its 10-year median of 16.49. Over the past 10 years, this metric has ranged from a low of 11.70 to a high of 20.09. The Aerospace & Defense industry median Gross Margin % is 26.70. Embraer's value of 17.99% is 32.6% below this industry median. Based on the distribution chart, Embraer ranks #253 out of 345 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Embraer has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Embraer's Gross Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Embraer ranks #253 out of 345 companies for Gross Margin %. This places Embraer in the lower half of its industry. The industry median Gross Margin % is 26.70. Embraer's value of 17.99% is 32.6% below this benchmark. Historically, Embraer's own Gross Margin % has ranged from 11.70 to 20.09 over the past decade. While the company's 10-year median is 16.49 vs. the industry median of 26.70, Embraer has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.70, based on 345 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Embraer's current Gross Margin % of 17.99% is 32.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Embraer and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embraer's current Gross Margin % is 17.99%, which is near median its own 10-year median of 16.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Embraer stock overvalued right now?
Embraer (BUE:ERJ) has a current Gross Margin % of 17.99%. The stock's GF Value™ is ARS89,213.35, compared to a current price of ARS97,100.00 — trading 8.8% above its estimated fair value. The current Gross Margin % is 17.99%, which is near median its 10-year median of 16.49 and 32.6% below the Aerospace & Defense industry median of 26.70. Embraer's overall GF Score™ is 51/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Embraer (BUE:ERJ), the current Gross Margin % is 17.99% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Embraer (BUE:ERJ) Overvalued in 2026?
Based on GuruFocus' analysis, Embraer stock appears to be overvalued.
The current stock price of ARS97,100.00 is trading 8.8% above its estimated GF Value™ of ARS89,213.35.
Key valuation signals for BUE:ERJ:
Gross Margin %: 17.99% (near median its 10-year median of 16.49)
GF Value™: ARS89,213.35 vs. price of ARS97,100.00 (8.8% above fair value)
Industry Position: 32.6% below the Aerospace & Defense median (#253 of 345)
No single metric tells the full story. See the BUE:ERJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the various segments namely Commercial Aviation, Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment. Geographically, the company operates in Brazil, Europe, Asia Pacific, North America, and Others.
51GF Score
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