Embraer (EMBJ) delivered its strongest second-quarter revenue in history, backed by a 16-year high in quarterly deliveries and a record-breaking backlog for the seventh consecutive quarter. During the Q2 2026 earnings call, CEO Francisco Gomes Neto confirmed that the company’s operational discipline and production ramp-up have prompted a formal increase in its full-year 2026 financial guidance.
Operational Milestones and Business Unit Growth
The company’s growth was broad-based across all segments. Commercial Aviation saw a 5% year-over-year increase in deliveries, bolstered by a significant order from Azorra for 15 E195-E2 jets. Notably, the E2 program officially surpassed the milestone of 500 firm orders during the quarter.
Executive Aviation achieved record-breaking performance, with an 18% increase in deliveries compared to the previous year, supported by robust market demand and the triple certification of the Praetor 500E and 600E models. Meanwhile, Defense and Security secured a landmark deal with the UAE for 10 C-390 aircraft—the largest international order for the platform to date and its first entry into the Middle East market.
Financial Performance and Margin Expansion
Consolidated net revenues climbed 23% to $2.2 billion in the second quarter. CFO Felipe Santana highlighted that adjusted EBIT margins reached 10.6% (excluding extraordinary items), significantly outperforming the five-year average by 5.5 percentage points.
Key financial takeaways include:
- Commercial Aviation: Revenues rose 8% to $625 million.
- Executive Aviation: Revenues surged 32% to $725 million.
- Defense and Security: Revenues jumped 38% to $304 million.
- Service and Support: Revenues grew 24% to $565 million, driven by new maintenance contracts, including support for the Brazilian Air Force’s KC-390 fleet.
The company recorded $8 million in U.S. import tariffs alongside a $68 million extraordinary tax credit. Excluding these impacts, the underlying profitability of the business remains on a strong upward trajectory, leading to an increase in the adjusted EBIT margin guidance to a range of 10%–10.6%.
Strategic Outlook and Future Production
Embraer maintains its delivery guidance of 80–85 commercial jets and 160–170 executive jets for the full year. The company is also raising its adjusted free cash flow guidance to $400 million or higher, reflecting strong first-half cash generation.
Regarding the eVTOL subsidiary, Eve, management confirmed that the flight testing campaign is progressing as planned, with the team transitioning from hover flights to transition flights. Looking toward 2030, Embraer is actively exploring opportunities to expand its global footprint. This includes potential production collaborations in India for both commercial jets and the C-390, as well as ongoing discussions regarding a potential U.S.-based assembly line for the C-390, depending on future order sizes.
“We have started the third quarter with strong momentum,” said CEO Francisco Gomes Neto. “Our performance reflects the discipline, focus, and commitment of our people, ensuring we deliver strong results today while investing in the technologies that will drive our future growth.”
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