10 Best Performing Defense Stocks So Far in 2025

6. Embraer S.A. (NYSE:ERJ)

YTD Gains as of March 25: 33.29%

Embraer S.A. (NYSE:ERJ) is a Brazil-based jet manufacturer that produces aircraft for commercial and executive aviation and defense purposes. It is one of the best performing stocks this year.

2025 has been an impressive year for the company, with returns of over 33% year-to-date in its share price, driven by multiple high-value orders. On February 5, Embraer S.A. (NYSE:ERJ) signed a $7 billion agreement with Flexjet for 182 aircraft and 30 options. This is the largest firm order for both companies and is set to double the size of Flexjet’s fleet over the next 5 years.

Later in the month, on February 25, Japan’s ANA Holdings placed an order for 15 Embraer S.A. (NYSE:ERJ) E190-E2 planes to support its domestic operations, with options for an additional five aircraft. The deliveries are expected to commence in 2028.

Investor sentiment has also been strengthened with the visit of Francisco Gomes Neto, Embraer’s President and CEO, to Warsaw in March. According to Reuters, the company is considering establishing an assembly line for its KC-390 military cargo aircraft in Poland, amid a surge in plane sales in Europe.

On February 27, Embraer S.A. (NYSE:ERJ) declared robust results for the fourth quarter and full year 2024. It generated a revenue of $2.3 billion in Q4, up 17% from last year. Full year revenue stood at $6.4 billion, the highest ever in the company’s history. The adjusted EBIT for Q4 was $265 million, with a margin of 11.5%. For 2024, the company generated $780 million with an 11.1% margin. It ended the year with a record order backlog of $26.3 billion.