Embraer has raised two key financial targets for 2026 after posting record revenue for a second quarter, reflecting stronger profitability and cash generation during the first half of the year.
The Brazilian manufacturer reported second-quarter revenue of R$11.3 billion ($2.1 billion), up 10% from a year earlier and the highest ever recorded for the April-June period.
Following the results, Embraer maintained its guidance for deliveries of 80-85 commercial aircraft, 160-170 business jets and consolidated revenue of $8.2 billion to $8.5 billion. The company, however, now expects an adjusted EBIT margin of 10.0%-10.6%, instead of the previous 8.7%-9.3%, and free cash flow of at least $400 million, compared with its earlier forecast of at least $200 million. Embraer attributed the revised outlook to a tax credit, tariff relief and an improved business outlook.
Adjusted EBIT margin measures how much operating profit a company generates from its revenue before interest and taxes, excluding one-off items. A higher margin means Embraer expects to earn more from its business without increasing sales targets.
Free cash flow is the cash left after operating expenses and capital investments. By doubling its minimum forecast, Embraer expects to retain substantially more cash during the year, strengthening its financial position and providing greater flexibility for future investments.
Adjusted EBIT reached R$1.5 billion in the second quarter, with a margin of 13.4%. Adjusted free cash flow, excluding Eve Air Mobility, totaled R$2 billion, supported by operational performance, proceeds from aircraft sales and an extraordinary tax credit.
Adjusted net income increased to R$1.1 billion from R$890.3 million a year earlier. Net income attributable to shareholders reached R$1 billion, more than doubling from R$448.9 million in the second quarter of 2025.
Defense & Security posted the strongest revenue growth among Embraer's business units, rising 22% year over year to R$1.5 billion, driven by increased revenue recognition from KC-390 Millennium production. Executive Aviation revenue climbed 19% to R$3.7 billion, while Services & Support grew 11% to R$2.9 billion. Commercial Aviation generated R$3.2 billion in revenue, down 2% from a year earlier as the appreciation of the Brazilian real against the U.S. dollar more than offset higher aircraft deliveries.
Embraer delivered 65 aircraft during the second quarter, its best April-June performance in 16 years and 7% more than in the same period of 2025. First-half deliveries reached 109 aircraft, up about 20% year over year.
The company's order backlog increased to a record $34.5 billion, extending a growth streak that has now reached seven consecutive quarters. The figure was 16% higher than a year earlier.
The revised guidance excludes Eve Air Mobility, whose financial results are reported separately after the eVTOL developer became an independent publicly traded company.
