Embraer (EMBR3) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter revenue of $1.5 billion and highest aircraft deliveries in a decade, with 44 aircraft delivered and a historic backlog of $32.1 billion, up 22% year-over-year, for the sixth consecutive quarter.

• Commercial aviation saw major orders, including 18 E195-E2 jets from Finnair and a significant UAE order for 10 C-390s plus 10 options.

• Executive aviation posted its best Q1 in a decade, driven by strong demand and new Praetor models, with all-time high 1Q revenues.

• Defense & Security experienced double-digit revenue growth, expanded partnerships, and momentum for key platforms like KC-390 and Super Tucano.

• Services & Support expanded recurring revenues through new contracts and achieved 15% year-over-year revenue growth.

Financial highlights

• Consolidated net revenues rose 31% year-over-year to $1,447 million, representing 17% of guidance midpoint.

• Adjusted EBITDA was $144 million (9.9% margin), and adjusted EBIT reached $94 million (6.5% margin), both up year-over-year.

• Adjusted net income was $28 million, with a margin of 1.9%, while EPS was $1.91.

• Adjusted free cash flow was -$447 million, reflecting inventory build for higher future deliveries.

• Investments totaled up to $148.6 million in Q1, including CapEx, tangible additions, pool program, and R&D.

Outlook and guidance

• 2026 guidance reiterated: revenue $8.2–$8.5 billion, adjusted EBIT margin 8.7%–9.3%, and free cash flow of $200 million or higher.

• Commercial aviation delivered 12% of guidance midpoint in Q1, executive aviation 18%, both above five-year averages.

• Defense segment expects to deliver six KC-390s and 12 A-29s in 2026, with annual KC-390 deliveries ramping to 10 by decade's end.

• EBIT margin guidance midpoint at 9%, with potential upside if tariffs remain unchanged.

• Guidance subject to macroeconomic, political, and regulatory risks in Brazil and global markets.