Embraer (EMBR3) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter revenue of up to $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, with new partnerships, momentum for key platforms, and expanded partnership with Northrop Grumman for the KC-390 program.

• Services & Support expanded recurring revenues through new contracts, including with Airnorth and Hungary.

Financial highlights

• Consolidated net revenues rose 31% year-over-year to $1,447 million, with adjusted EBITDA at $144 million (9.9% margin) and adjusted EBIT at $94 million (6.5% margin).

• Adjusted net income ranged from $27.7 million to $50 million, with margins down year-over-year due to extraordinary items.

• Adjusted free cash flow was negative, ranging from -$447 million to -R$2.4 billion, reflecting inventory build for higher future deliveries.

• Investments in Q1 totaled up to R$780 million (Embraer + Eve), mainly in CapEx, intangibles, and R&D.

• Net cash position (excluding Eve) was negative, down from positive in 4Q25.

Outlook and guidance

• 2026 guidance reaffirmed: 80–85 commercial and 160–170 executive jet deliveries, revenue $8.2–8.5 billion, adjusted EBIT margin 8.7–9.3%, and free cash flow of at least $200 million.

• 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.

• Management expects higher deliveries in coming quarters, supported by strong backlog.