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Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Embraer's Pre-Tax Income for the
three
months ended in Mar. 2026 was R$216 Mil. Embraer's Revenue for the
three
months ended in Mar. 2026 was R$7,566 Mil. Therefore, Embraer's pretax margin for the quarter that ended in Mar. 2026 was 2.85%.
The historical rank and industry rank for Embraer's Pretax Margin % or its related term are showing as below:
BSP:EMBJ3'
s Pretax Margin % Range Over the Past 10 Years
Min: -16.84 Med: -1.02 Max: 8.71
Current: 4.2
BSP:EMBJ3's Pretax Margin % is ranked worse than 57.43% of 350
companies
in the Aerospace & Defense industry
Industry Median: 6.09
vs BSP:EMBJ3: 4.20
Embraer (BSP:EMBJ3) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Embraer Pretax Margin % Related Terms
Embraer Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Embraer's Pretax 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.
BSP:EMBJ3 vs SPCX, GE, RTX: Pretax Margin % Comparison
For the Aerospace & Defense subindustry, Embraer's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Embraer's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Embraer's Pretax 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.
Embraer (BSP:EMBJ3) has a Pretax Margin % of 2.85% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Embraer and its competitors. According to the industry distribution chart, Embraer ranks #201 out of 350 companies in the Aerospace & Defense industry, placing it in the top 57.4%.
Is Embraer's Pretax Margin % too high?
Embraer's current Pretax Margin % is 2.85%. The Aerospace & Defense industry median Pretax Margin % is 6.09. Embraer's value of 2.85% is 53.2% below this industry median. Based on the distribution chart, Embraer ranks #201 out of 350 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Embraer has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Embraer's Pretax Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Embraer ranks #201 out of 350 companies for Pretax Margin %. This places Embraer in the lower half of its industry. The industry median Pretax Margin % is 6.09. Embraer's value of 2.85% is 53.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Aerospace & Defense company?
The median Pretax Margin % among Aerospace & Defense companies is 6.09, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Embraer's current Pretax Margin % of 2.85% is 53.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Embraer and its competitors. For the Aerospace & Defense industry, the median Pretax Margin % is 6.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embraer's current Pretax Margin % is 2.85%. 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?
Based on GuruFocus' analysis, Embraer (BSP:EMBJ3) is currently considered Fairly Valued. The stock's GF Value™ is R$75.81, compared to a current price of R$82.49 — trading 8.8% above its estimated fair value. The current Pretax Margin % is 2.85% and 53.2% below the Aerospace & Defense industry median of 6.09. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Embraer (BSP:EMBJ3), the current Pretax Margin % is 2.85% 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 (BSP:EMBJ3) Overvalued in 2026?
Based on GuruFocus' analysis, Embraer stock appears to be overvalued.
The current stock price of R$82.49 is trading 8.8% above its estimated GF Value™ of R$75.81.
GuruFocus considers Embraer to be Fairly Valued.
Key valuation signals for BSP:EMBJ3:
Pretax Margin %: 2.85%
GF Value™: R$75.81 vs. price of R$82.49 (8.8% above fair value)
Industry Position: 53.2% below the Aerospace & Defense median (#201 of 350)
No single metric tells the full story. See the BSP:EMBJ3 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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Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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