EMBRAER REPORTS RECORD SECOND-QUARTER REVENUE AS 2026 OUTLOOK STRENGTHENS

Brazilian aerospace manufacturer Embraer closed the second quarter of 2026 with a notable acceleration across its business, reporting record revenue for the April-to-June period alongside higher profitability, stronger cash generation and another increase in its order backlog.

For the three months ended June, Embraer generated US$2.2 billion in revenue, 23 per cent higher than the same period in 2025. The result represents the company’s highest-ever revenue for a second quarter and comes as production, deliveries and demand continue to strengthen across several of its principal business segments.

The company’s performance also led to a significant revision of its expectations for the remainder of 2026. Embraer now forecasts an adjusted EBIT margin of between 10 and 10.6 per cent, compared with its previous guidance of 8.7 to 9.3 per cent. Adjusted free cash flow excluding Eve is now expected to reach US$400 million or more, double the previous minimum guidance of US$200 million.

Several factors contributed to the revised outlook, including a tax credit, the exemption of tariffs and what the company described as an improved business environment.

Profitability strengthened during the quarter as well. Adjusted EBIT reached US$296.9 million, representing a 13.3 per cent margin. Adjusted free cash flow excluding Eve stood at US$401 million, supported by stronger operating performance, sales-related pre-downpayment inflows and an extraordinary tax credit.

Adjusted net income rose to US$218.6 million, compared with US$158 million during the corresponding quarter of 2025. Net income attributable to shareholders reached US$212.6 million, while net income per American Depositary Share increased to US$1.1880, compared with US$0.4283 a year earlier.

Investment also increased. Embraer invested US$120.8 million during the second quarter, up from US$97.5 million in the same period of 2025. Including investments associated with Eve, the total reached US$151 million, compared with US$145.9 million a year earlier.

The results were not confined to a single division. Embraer’s four principal business areas each contributed to the quarter’s performance, although growth rates varied.

Defense & Security recorded revenue of US$304 million, an increase of 38 per cent year on year. The division benefited particularly from stronger revenue recognition associated with the KC-390 Millennium programme, influenced by customer mix and the stage of production. Gross margin improved from 19.5 to 20.6 per cent, while adjusted EBIT margin increased from 9.2 to 11.9 per cent, reflecting stronger operating leverage.

Executive Aviation was another significant contributor. Revenue reached US$725 million, 32 per cent above the second quarter of 2025, with higher volumes and product mix supporting the increase. The performance reflects continued activity in Embraer’s business aviation portfolio, which spans several aircraft categories and markets.

Services & Support generated US$565 million, representing a 24 per cent year-on-year increase. Growth was reported across all segments, highlighting the increasing contribution of the company’s aftermarket operations alongside aircraft manufacturing.

Commercial Aviation recorded revenue of US$625 million, an 8 per cent increase compared with the same quarter last year. Higher aircraft volumes were the principal driver of the improvement.

Aircraft deliveries provided another important indicator of the company’s momentum. Embraer delivered 65 aircraft during the second quarter, 7 per cent more than in the same period of 2025 and its strongest second-quarter delivery performance in 16 years.

The first half of 2026 saw the company deliver 109 aircraft, approximately 20 per cent more than the 91 delivered during the first six months of 2025. The increase reflects continued progress in Embraer’s production-levelling initiatives, intended to create greater consistency and efficiency across its manufacturing operations.

Behind those deliveries sits an increasingly substantial order book. Embraer’s backlog reached US$34.5 billion at the end of the second quarter, setting another record and extending a seven-quarter upward trend. The figure represents a 16 per cent increase compared with the backlog reported in the second quarter of 2025.

For an aircraft manufacturer, backlog provides an important indication of future demand, although the value is realised over time as aircraft move through production and are ultimately delivered to customers. Embraer’s latest figure therefore places the second-quarter financial results within a broader picture of sustained order activity.

The company enters the second half of the year with a diversified portfolio spanning commercial aircraft, executive jets, defence programmes and services. That breadth has become increasingly relevant to its financial performance, with each division contributing differently to the latest results.

Founded in 1969 in Brazil, Embraer was established with the purpose of developing the country’s aerospace manufacturing capabilities. From its origins in São José dos Campos, São Paulo, the company grew into an international aircraft manufacturer with operations and customers across multiple continents. Its heritage is closely associated with the development of regional aviation, while its portfolio has since expanded into executive aviation, defence and security, agricultural aviation and aftermarket services.

Today, Embraer designs, develops, manufactures and markets aircraft and aviation systems, while providing services and support to customers around the world. The company says it has delivered more than 9,000 aircraft since its foundation, with its aircraft operating across the Americas, Europe, Africa and Asia. It is also recognised as a leading manufacturer of commercial aircraft with capacity of up to 150 seats.

The second-quarter figures suggest that the company’s recent production and commercial initiatives are beginning to translate into broader financial momentum. The combination of higher deliveries, a record backlog and increased revenue across several business areas has also given Embraer greater confidence in its full-year expectations.

Its revised guidance will now be closely watched as the year progresses. The higher EBIT margin target points to an expectation of continued operational improvement, while the raised free-cash-flow target reflects confidence in the company’s ability to convert stronger business activity into cash generation.

The quarter is therefore significant not simply for its headline revenue figure, but for the consistency of the indicators surrounding it. Deliveries are rising, the backlog continues to expand, services are gaining scale and multiple business units are contributing to growth.

For Embraer, the next stage will be about sustaining that momentum while managing the complexity inherent in a global aerospace business. The record second quarter offers a strong starting point, but the significance of the numbers will ultimately be measured by how effectively the company carries this performance into the remainder of 2026.