EMBRAER S.A. (EMBJ): Financial results for Q2 2026
EMBRAER S.A. (EMBJ) furnished an SEC Form 6-K — earnings release. 1 | EMBRAER EARNINGS RESULTS | 2nd QUARTER 2026 EARNINGS RESULTS 2nd Quarter 2026 2 | EMBRAER EARNINGS RESULTS | 2nd QUARTER 2026 Index Highlights Main Financial Indicators 2026 Guidance Updated Deliveries And Backlog Revenue, Gross Margin And Adjusted EBIT Adjusted EBIT (Earning
How this was made
The 30-second read
Why it matters
The Q2 2026 earnings beat and raised FY guidance could drive short-term buying and improve sector sentiment.
Market read
EMBJ's strong results may lift the stock and benefit peer aerospace companies.
What to watch
Potential impact of U.S. import tariff exemptions may be temporary, affecting future earnings.
Embraer reported all-time high second-quarter revenue of US$2,235.3 million, expanded Adjusted EBIT margin to 13.3%, generated US$401.0 million of Adjusted free cash flow w/o Eve, and raised 2026 Adjusted EBIT margin and free-cash-flow guidance.
Revenue increased +23% year-over-year, all operating business units grew revenue, Adjusted EBIT margin reached +13.3% versus +10.5% in 2Q25, Adjusted free cash flow w/o Eve was US$401.0 million, and the company increased its full-year Adjusted EBIT margin and free-cash-flow outlook while maintaining revenue and delivery guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | US$2,235.3 million | – | +23% |
| Gross profitother | US$444.8 million | – | – |
| Operating income before financial resultother | US$285.8 million | – | – |
| Reported EBITother | US$285.8 million | – | – |
| Reported EBIT marginother | +12.8% | – | – |
| Adjusted EBITDAnon-GAAP | US$355.6 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 15.9% | – | – |
| EBITDAother | US$344.5 million | – | – |
| EBITDA marginother | 15.4% | – | – |
| Adjusted EBITnon-GAAP | US$296.9 million | – | – |
| Adjusted EBIT marginnon-GAAP | 13.3% | – | – |
| Income for the periodother | US$213.9 million | – | – |
| Net income attributable to Embraer shareholdersother | US$212.6 million | – | – |
| Adjusted net incomenon-GAAP | US$218.6 million | – | – |
| Adjusted net marginnon-GAAP | 9.8% | – | – |
| Earnings per share - ADS basicother | US$1.1880 | – | – |
| Earnings per share - ADS dilutedother | US$1.1880 | – | – |
| Net cash provided by operating activitiesother | US$447.4 million | – | – |
| Adjusted free cash flow w/o Evenon-GAAP | US$401.0 million | – | – |
| Embraer consolidated adjusted free cash flownon-GAAP | US$351.8 million | – | – |
| Firm order backlogother | US$34.5 billion | – | more than 16% higher yoy |
| Aircraft deliveriesother | 65 aircraft | – | +7% |
| Embraer consolidated cash positionother | US$2,340.6 million | – | – |
| Embraer cashother | US$1,937.4 million | – | – |
| Embraer gross debtother | US$2,151.9 million | – | – |
| Embraer net cashnon-GAAP | US$(214.5) million | – | – |
| Embraer & Eve net cashother | US$(123.6) million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial AviationHigher volumes; gross margin decreased from +10.1% to +8.4% year-over-year and Adjusted EBIT margin decreased from +4.3% to +2.9% because of customer mix, including legacy contracts. | US$625 million | – | +8% |
| Executive AviationHigher volumes and product mix. Gross margin increased from +20.9% to +23.8%, while Adjusted EBIT margin increased from +14.5% to +23.4%, supported by stronger operating performance and an extraordinary US$60 million tax credit. | US$725 million | – | +32% |
| Defense & SecurityStronger KC-390 revenue recognition related to customer mix and product stage under the percentage-of-completion calculation method. Gross margin increased from +19.5% to +20.6% and Adjusted EBIT margin rose from +9.2% to +11.9%. | US$304 million | – | +38% |
| Services & SupportHigher volumes across all segments. Gross margin decreased from +28.8% to +27.5% because of materials inflation and U.S. tariffs, while Adjusted EBIT margin increased from +15.5% to +18.7%, primarily driven by a US$8 million extraordinary tax credit. | US$565 million | – | +24% |
| OthersLower deliveries in agricultural aviation during the quarter. | US$15 million | – | -6% |
2026 Guidance Updated (Eve Not Included) outlook
- RevenueUS$8.2 to US$8.5 billion
- NoteCommercial Aviation deliveries: 80 - 85 aircraft
- NoteExecutive Aviation deliveries: 160 - 170 aircraft
- NoteAdjusted EBIT margin: 10.0% - 10.6%
- NoteFree cash flow: US$400 million or higher
Capital returns
- Dividends paid in the period: US$62.8 million.
- On June 18, 2026, the company declared R$200.0 million in Interest on Equity related to the 2nd quarter.
- Gross Value per Share: R$0.28.
- Gross Value per ADS: US$0.22.
- EMBJ3 Payment Date: May 24, 2027.
- 2026 Total dividend yield: 0.34%.
- Repurchases of common shares: - in 2Q26.
What drove it
- All business units delivered year-over-year revenue growth: Defense & Security +38%, Executive Aviation +32%, Services & Support +24%, and Commercial Aviation +8%.
- Commercial Aviation delivered 20 aircraft, consisting of 10 E2s and 10 E1s; Executive Aviation delivered 45 jets, consisting of 24 small and 21 medium jets. There were no Defense & Security deliveries.
- The firm order backlog reached US$34.5 billion, with year-over-year backlog growth of +42% in Defense & Security, +15% in Commercial Aviation, +12% in Services & Support, and +5% in Executive Aviation.
- The company recorded an extraordinary US$68 million tax credit during the quarter.
- Sales-related pre-downpayment inflows, reflected in contract liabilities, supported cash generation.
- Lower net financial expenses and stronger operating performance supported adjusted net income growth.
Concerns
- Commercial Aviation gross margin decreased from +10.1% to +8.4% year-over-year and Adjusted EBIT margin decreased from +4.3% to +2.9% because of customer mix, including legacy contracts.
- Services & Support gross margin decreased from +28.8% to +27.5% because of materials inflation and U.S. tariffs.
- U.S. import tariffs totaled US$8 million during 2Q26. The company expects to remain subject to circa US$12 million of indirect U.S. import tariffs on a yearly basis.
- The quarter's Adjusted EBIT included an extraordinary US$68 million tax credit. Excluding U.S. tariffs and the extraordinary tax credit, Adjusted EBIT margin would have been +10.6%.
- Eve generated negative US$(49.2) million free cash flow during the quarter and its gross debt increased by US$9.9 million sequentially to US$312.3 million.
What to watch
- Execution against 2026 Commercial Aviation deliveries of 80 - 85 aircraft and Executive Aviation deliveries of 160 - 170 aircraft.
- Sustainability of the updated 10.0% - 10.6% Adjusted EBIT margin outlook after the extraordinary tax credit and tariff effects.
- Conversion of the US$34.5 billion firm order backlog into revenue and deliveries.
- Commercial Aviation margin performance amid customer mix and legacy contracts.
- Sales-related pre-downpayment inflows and contract-liability movements that supported US$401.0 million of Adjusted free cash flow w/o Eve.
- Progress of the Executive Aviation and Services & Support capacity-expansion projects, including the stated production and MRO ramps.
Balance sheet and cash flow
- Working Capital (w/o Eve): US$(1,012.9) million at 2Q26, compared with US$(828.6) million at 1Q26 and US$(396.9) million at 2Q25.
- Working capital improved US$(184.3) million during 2Q26 because of sales-related pre-downpayments.
- Contract liabilities were US$3,738.6 million excluding Eve, up US$299.7 million sequentially and US$423.7 million year-over-year.
- Net cash provided by operating activities was US$447.4 million.
- Net cash used in investing activities was US$(67.7) million.
- Net cash used in financing activities was US$(310.1) million.
- Embraer invested US$120.8 million on a stand-alone basis; Eve invested US$30.2 million; consolidated investment was US$151.0 million.
- The company had an undrawn US$1.0 billion Revolving Credit Facility.
- Eve cash was US$403.2 million and Eve gross debt was US$312.3 million at 2Q26.
Analysis
Embraer delivered a strong second quarter, with revenue reaching US$2,235.3 million, an all-time high for a second quarter and +23% above 2Q25. Each operating business grew revenue year-over-year. Defense & Security increased +38%, Executive Aviation rose +32%, Services & Support grew +24%, and Commercial Aviation increased +8%. Aircraft deliveries rose +7% to 65, while the firm order backlog reached a record US$34.5 billion and was more than 16% higher year-over-year.
Profitability improved materially. Reported EBIT was US$285.8 million with a +12.8% margin, compared with US$179.5 million and a +9.9% margin in 2Q25. Adjusted EBIT was US$296.9 million and the Adjusted EBIT margin was 13.3%, versus 10.5% a year earlier. Executive Aviation and Defense & Security expanded margins, while Commercial Aviation experienced gross-margin and Adjusted EBIT-margin declines tied to customer mix and legacy contracts. Services & Support faced materials inflation and U.S. tariff pressure on gross margin but expanded Adjusted EBIT margin with an extraordinary tax credit.
The reported margin result included an extraordinary US$68 million tax credit, while U.S. import tariffs totaled US$8 million during the quarter. The company stated that Adjusted EBIT margin would have been +10.6% in 2Q26 excluding both tariffs and the extraordinary tax credit. Adjusted net income was US$218.6 million, compared with US$158.0 million a year ago, and net income attributable to Embraer shareholders was US$212.6 million. Lower net financial expenses and stronger operating performance supported the year-over-year increase in adjusted net income.
Cash generation was a central feature of the quarter. Adjusted free cash flow w/o Eve was US$401.0 million, supported by stronger operating performance, sales-related pre-downpayment inflows, and the extraordinary tax credit. Contract liabilities excluding Eve increased US$299.7 million sequentially to US$3,738.6 million, while working capital excluding Eve improved US$(184.3) million. Embraer's stand-alone net cash position improved sequentially by US$315.6 million to US$(214.5) million, driven by a US$79.8 million cash increase and a US$(235.8) million reduction in gross debt.
Management maintained 2026 delivery targets and consolidated revenue guidance of US$8.2 to US$8.5 billion. It raised Adjusted EBIT margin guidance to 10.0% - 10.6% from 8.7% - 9.3% and raised free-cash-flow guidance to US$400 million or higher from US$200 million or higher. The company attributed the circa US$110 million increase in the midpoint of implied 2026 Adjusted EBIT guidance to US$68 million from an extraordinary tax credit, US$38 million from exemption of direct U.S. import tariffs in 2H26, and US$4 million from an improved business outlook.
Not in the filing
stated, not guessed- A consolidated GAAP gross-margin figure was not reported.
- A consolidated GAAP gross-margin prior-year comparison was not reported.
- A consolidated GAAP gross-margin prior-quarter comparison was not reported.
- 2026 guidance for gross margin, operating expenses, and tax rate was not reported.
- Segment revenue prior-quarter comparisons and sequential revenue changes were not reported.
- A separate previous-release outlook section was not provided for formal actual-versus-prior-guidance comparisons.
- Named executive quotations were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Embraer S.A. is a Brazilian aerospace manufacturer listed on NYSE (EMBJ) producing commercial, executive, and defense aircraft.
Ticker impact
Q2 2026 earnings release showing $2.235B revenue (+23% YoY) and upgraded FY EBIT margin guidance.
EMBJ likely to see price appreciation on the news.
Revenue beat, margin expansion, and free cash flow guidance raise earnings outlook.
Market effects
Positive earnings may lift aerospace and defense sector sentiment.
Boosts sentiment for Brazil and US aerospace stocks.
Improved outlook for commercial and executive jet markets worldwide.
Counterpoint
Higher guidance may already be priced in; risk of margin pressure from future tariff changes.
Key entities
- CompanyEmbraer S.A.
Brazilian aerospace and defense manufacturer.
