Embraer Adjusted Profit Soars 38% as Q2 2026 Revenue Hits All-Time High

Record $2.2 billion in revenue, a 38% adjusted-profit jump and a $34.5 billion backlog pushed Embraer to lift its 2026 targets — and its best second quarter ever came with 65 jets delivered.

Embraer reported record second-quarter revenue of $2.2 billion on Monday and a 38% jump in adjusted profit, prompting the Brazilian planemaker to raise its full-year earnings and cash targets.

Revenue for the three months ended June 30 reached $2.235 billion, up 23% from $1.82 billion a year earlier and an all-time high for a second quarter, the company said in unaudited results filed with U.S. regulators. Adjusted net income climbed to $218.6 million from $158 million, a gain of 38.4%.

Net income attributable to Embraer was $212.6 million. Basic earnings per American depositary share came to $1.19, compared with 43 cents a year earlier.

The numbers cleared Wall Street’s bar. Analysts tracked by Zacks had projected revenue of $2.05 billion and adjusted earnings of 61 cents per American depositary share; Embraer posted $2.24 billion and $1.19. Shares rose about 7.6% in premarket trading in New York.

“This has been our strongest Q2 performance in our history, and our best deliveries in 16 years,” Chief Executive Francisco Gomes Neto said during a briefing with analysts and reporters Monday.

Why the Embraer Q2 2026 Revenue Record Matters

Six years after Boeing terminated its planned purchase of Embraer’s commercial aircraft business, the world’s third-largest commercial jet maker, behind Airbus and Boeing, is turning in the sort of quarter that reshapes how U.S. buyers, suppliers and defense planners view it. FlightGlobal described the company as being in arguably its strongest-ever financial position.

The firm order backlog closed the quarter at an all-time high of $34.5 billion, up 16% and the seventh consecutive quarterly record. Options, if exercised, would add about $21 billion, taking the total opportunity above $55 billion, Embraer told analysts.

Deliveries reached 65 aircraft, up 7% from 61 a year earlier and the company’s strongest second quarter for handovers in 16 years. The mix: 20 commercial jets, split evenly between E2s and first-generation E-Jets; 45 executive jets, comprising 24 light and 21 midsize aircraft; and no military aircraft, reflecting the lumpy timing of defense handovers. First-half deliveries totaled 109 aircraft, a 20% increase from 91 a year earlier.

Executive Jets and Defense Lead the Segments

Executive Aviation was the standout, with revenue of $725 million, up 32% on higher volumes and a richer mix. The division is now Embraer’s largest by units, running roughly two-to-one against commercial, and its Phenom 300 family has been the top-selling light jet for 14 consecutive years. Its adjusted EBIT margin was 16.1% excluding one-time tariff and tax-credit effects, according to the company’s earnings presentation.

Defense & Security revenue rose 38% to $304 million, driven by revenue recognition on the KC-390 Millennium tactical transport. Gross margin improved to 20.6% from 19.5%, and adjusted EBIT margin to 11.9% from 9.2%.

Services & Support brought in $565 million, up 24%. Commercial Aviation was the more modest performer at $625 million, up 8%. Its adjusted EBIT margin narrowed to 2.9% from 4.3%.

Group adjusted EBIT was $296.9 million, a 13.3% margin against 10.5% a year earlier. Stripping out U.S. tariffs and the extraordinary tax credit, the margin would have been 10.6%, the company said. Adjusted free cash flow excluding Eve Air Mobility totaled $401 million. Investments in the quarter were $120.8 million, up from $97.5 million a year earlier.

Guidance Raised on Tax Credit and U.S. Tariff Relief

“Embraer now expects to close 2026 with an adjusted EBIT margin between 10% and 10.6% (up from between 8.7% and 9.3%) and adjusted free cash flow excluding Eve of US$400 million or higher (up from US$200 million or higher),” the company said.

The cash flow figure reflects “stronger operating performance, strong sales-related pre-downpayment inflows, and an extraordinary tax credit,” according to the company.

Roughly $110 million of additional EBIT at the midpoint underpins the raise, Embraer said. A $68 million extraordinary tax credit accounts for 80 basis points, exemption from direct U.S. import tariffs in the second half adds $38 million and 45 basis points, and an improved operating outlook contributes $4 million, or five basis points. Embraer remains exposed to about $12 million a year in indirect U.S. tariffs. Chief Financial Officer Felipe Santana told analysts the tax credit is largely a refund of tariffs previously paid.

Revenue guidance was unchanged at $8.2 billion to $8.5 billion, as were delivery targets of 80 to 85 commercial jets and 160 to 170 executive aircraft.

“We continue to see strong performance across all our business units, driven by our focus on sales execution, efficiency, operational discipline, and production ramp-up,” Gomes Neto said.

KC-390 Orders Build, With India and U.S. Lines on the Table

The defense book has widened quickly. In May, the United Arab Emirates ordered 10 C-390 Millenniums with options for 10 more, the largest single export order for the type and the first in the Middle East. On Aug. 4, Colombia signed a fixed-price contract worth about $366.4 million for two KC-390 Millenniums plus support and offset work, with deliveries in 2029 and 2030, making it the first Latin American export customer after Brazil.

Austria, the Czech Republic, Hungary, Lithuania, the Netherlands, Portugal, Slovakia, South Korea, Sweden and Uzbekistan have also signed for the airlifter, making Colombia the 13th country to select the type. Greece’s national security council approved a roughly 600 million euro purchase of three C-390s in July, structured as a government-to-government deal with Portugal, but a contract had not been signed as of Monday.

“In defense, yes. Because of the geopolitical situation, we have seen countries accelerating sales campaigns,” Gomes Neto said.

Embraer has said it would open a full assembly line in India, with partner Mahindra, should it win that country’s Medium Transport Aircraft requirement, which Embraer executives have said could cover 60 to 80 aircraft. New Delhi had not issued a request for proposals when Embraer outlined the offer in June. The company is also pledging a U.S. assembly line and local supply chain to support government contracts, and is working with Northrop Grumman on a boom-equipped tanker option.

“An opportunity we are working on is with India. This will allow us to implement a second assembling line outside Brazil… Another opportunity we are working on is with the United States… to implement a third assembly line,” Gomes Neto said.

By the end of the decade, he said, Embraer is targeting 120 to 130 commercial jets, 200 executive aircraft and 10 KC-390s a year. “The outlook is good, but we are doing it in a very responsible way,” he said.

E2 Passes 500 Orders; Praetor 500E Certified

In June, lessor Azorra placed a firm order for 15 E195-E2s with 15 purchase rights, pushing the E2 program past 500 firm orders since its 2013 launch and lifting Azorra’s firm E2 total to 54. The deal landed ahead of the Farnborough air show.

On the business jet side, the Praetor 500E won simultaneous certification from Brazil’s ANAC, the Federal Aviation Administration and the European Union Aviation Safety Agency on June 30, two months after the Praetor 600E cleared the same three authorities on April 30. Both were unveiled in February, with deliveries of the E variants expected from 2029.

“Achieving triple certification ahead of schedule and on spec is a strong testament to our engineering excellence, enterprise efficiency, and disciplined execution,” said Michael Amalfitano, president and CEO of Embraer Executive Jets.

Gomes Neto said Embraer is “working on opportunities to help [Indian airlines] introduce E2s to help improve connectivity between smaller cities.”

Eve Still Spending, Not Earning

Eve Air Mobility, Embraer’s majority-owned electric air taxi developer, remains a cost center. Its prototype has been flying since late 2025 and completed its first partial transition flight on Aug. 3, with full transition targeted by the end of 2026 to derisk the program. Entry into service is planned for the end of 2028, simultaneously in Brazil and the United States, backed by about 2,800 firm orders and letters of intent and production capacity of up to 480 aircraft a year at Taubaté. The unit generates no revenue and continues to absorb engineering resources.

“We are very confident about Eve’s contribution to Embraer’s growth, especially beyond 2030,” Gomes Neto said.

Background

Boeing terminated the acquisition of Embraer’s commercial arm and related KC-390 joint venture plans on April 25, 2020, citing Embraer’s failure to satisfy conditions by an April 24 deadline; the pandemic and Boeing’s 737 Max crisis were also factors. Eve was carved out as a separate company in October 2020 and listed in New York in 2022. Embraer’s headquarters and commercial aircraft work are in São José dos Campos, with defense production at Gavião Peixoto.

The company declared 200 million reais in interest on equity, equivalent to about $0.22 per ADS.