Embraer has reported second quarter revenue of US$2.2 billion, up 23 per cent year on year and an all-time record for the period, with adjusted EBIT of US$296.9 million at a 13.3 per cent margin. The manufacturer delivered 65 aircraft (its strongest second quarter in 16 years) and has raised full-year margin and cash flow guidance.
RECORDS IN REVENUE, DELIVERIES AND BACKLOG SIMULTANEOUSLY
Embraer (NYSE: EMBJ / B3: EMBJ3) has reported revenue of US$2.2 billion for the second quarter of 2026, a 23 per cent increase on the same quarter of 2025 and an all-time record for the April to June period. Consolidated adjusted EBIT was US$296.9 million at a margin of 13.3 per cent, and adjusted free cash flow excluding Eve totalled US$401 million. Adjusted net income rose to US$218.6 million from US$158 million a year earlier, with net income attributable to shareholders of US$212.6 million and net income per American Depositary Share of US$1.1880, against US$78.6 million and US$0.4283 respectively in the second quarter of 2025.
Deliveries reached 65 aircraft in the quarter, the strongest second-quarter performance in 16 years and 7 per cent above the prior year. Across the first half, Embraer delivered 109 aircraft against 91 in the same period of 2025, an increase of approximately 20 per cent, which the company attributes to continued progress in its production levelling initiatives. Backlog rose to US$34.5 billion, a seventh consecutive record quarter and 16 per cent above the level reported in the second quarter of 2025.
GUIDANCE RAISED ON TARIFF EXEMPTION AND A TAX CREDIT
Embraer has raised its full-year 2026 guidance, now expecting an adjusted EBIT margin between 10 and 10.6 per cent, up from a previous range of 8.7 to 9.3 per cent, and adjusted free cash flow excluding Eve of US$400 million or higher, up from US$200 million or higher. The company identifies three factors behind the revision: an extraordinary tax credit, exemption from tariffs, and an improved business outlook.
The composition of the free cash flow figure warrants attention when reading the result. Embraer states that the US$401 million reflects stronger operating performance, strong sales-related pre-downpayment inflows and an extraordinary tax credit — meaning the figure combines recurring operational improvement with a non-recurring item and with customer money received ahead of delivery. Each is a legitimate contributor to cash generation, but only the first is a durable characteristic of the business. Investment during the quarter was US$120.8 million against US$97.5 million a year earlier, or US$151 million including Eve against US$145.9 million.
Note: Full-year guidance figures are Embraer’s own stated expectations and are subject to the qualifications set out in its published results.
DEFENCE LEADS ON GROWTH, EXECUTIVE AVIATION ON SCALE
Defence and Security was the standout performer on growth, reporting revenue of US$304 million, 38 per cent higher year on year, driven by stronger KC-390 Millennium revenue recognition related to customer mix and product stage. Gross margin rose from 19.5 to 20.6 per cent and adjusted EBIT margin from 9.2 to 11.9 per cent, supported by operating leverage. The result follows Colombia’s order for two KC-390 aircraft announced on 4 August, which made it the thirteenth country to select the type and the first Latin American operator beyond Brazil.
Executive Aviation generated the largest revenue of any unit at US$725 million, up 32 per cent on higher volumes and product mix. Services and Support reached US$565 million, 24 per cent higher on increased volumes across all segments. Commercial Aviation reported US$625 million, 8 per cent above the prior year, primarily on higher volumes — the slowest growth of the four units, though from the second-largest base.
Embraer has delivered more than 9,000 aircraft since its foundation in 1969. The company states that on average an Embraer-built aircraft takes off somewhere in the world every ten seconds, carrying more than 150 million passengers annually, and that it is the leading manufacturer of commercial jets up to 150 seats and Brazil’s principal exporter of high value-added goods.
Source: Embraer
