Embraer (EMBR3) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $2.24 billion (R$11.3 billion), up 23% year-over-year, with the highest Q2 deliveries in 16 years (65 aircraft) and a historic order backlog of $34.5 billion, up 16% year-over-year for the seventh consecutive quarter.

• Strong performance and growth across all business units, driven by sales execution, operational discipline, innovation, and production ramp-up.

• Adjusted EBIT reached $297 million (13.3% margin), boosted by a $68 million extraordinary tax credit and lower U.S. tariffs; adjusted net income was $290 million.

• Free cash flow (excluding Eve) was $401 million (R$2.0 billion), reflecting robust operations and significant customer advances.

• 2026 guidance was raised for EBIT margin (10.0–10.6%) and free cash flow ($400 million or higher), reflecting confidence in the business outlook and favorable effects.

Financial highlights

• Net revenues increased 23% year-over-year to $2.24 billion (R$11.3 billion) in Q2; first half revenues reached $3.7 billion (R$18.9 billion).

• Adjusted EBITDA was $356 million (15.9% margin) and adjusted EBIT was $297 million (13.3% margin); adjusted net income was $290 million (9.8% margin); EPS at $2.50 (R$1.52) on a last 12-month basis.

• Adjusted free cash flow (excluding Eve) was $401 million (R$2.0 billion) in Q2.

• Backlog reached $34.5 billion, up 16% year-over-year.

• Stand-alone net cash position improved by $315.6 million sequentially to $(214.5) million.

Outlook and guidance

• 2026 guidance reaffirmed: commercial deliveries 80–85, executive deliveries 160–170, revenue $8.2–$8.5 billion.

• Adjusted EBIT margin guidance raised to 10.0–10.6% (from 8.7–9.3%), and free cash flow (ex-Eve) to $400 million or more.

• Upward revision reflects extraordinary tax credit, U.S. tariff relief, and improved business outlook.