Brazilian aircraft manufacturer Embraer recorded a sharp increase in profitability in the second quarter of 2026, supported by higher revenue, stronger operating performance and improved cash generation.
The company’s adjusted net income rose 38.4 per cent to $218.6 million in the three months ended June, compared with $158 million in the same period of 2025.
Revenue climbed 23 per cent year-on-year to a record $2.2 billion for the second quarter, while adjusted free cash flow excluding Eve, Embraer’s electric aircraft subsidiary, reached $401 million.
Embraer attributed the strong performance to improved operations, higher sales-related pre-delivery payment inflows and an extraordinary tax credit. The company also cited tariff exemptions and a more positive business outlook as factors supporting its decision to raise its full-year guidance.
Embraer now expects an adjusted EBIT margin of between 10 per cent and 10.6 per cent for 2026, compared with its previous forecast of 8.7 per cent to 9.3 per cent. It also raised its adjusted free cash flow target excluding Eve to at least $400 million, double its earlier guidance of $200 million.
The manufacturer delivered 65 aircraft during the quarter, its strongest second-quarter delivery performance in 16 years and a seven per cent increase from the corresponding period last year. The deliveries comprised 20 commercial aircraft and 45 executive jets.
For the first half of 2026, Embraer delivered 109 aircraft, up about 20 per cent from the 91 aircraft delivered in the first half of 2025, reflecting continued progress in its production-levelling initiatives.
The company’s commercial aviation business continued to benefit from strong demand, while its executive aviation division generated $725 million in revenue during the quarter, representing a 32 per cent increase year-on-year. Embraer attributed the growth to higher volumes and a favourable product mix.
Its Defence and Security business also recorded strong growth, with revenue rising 38 per cent year-on-year to $304 million, driven by stronger revenue recognition from the KC-390 Millennium programme.
Embraer’s firm order backlog reached a record $34.5 billion at the end of the quarter, representing a 16 per cent increase from the second quarter of 2025 and providing further visibility for future production and deliveries.
The company reaffirmed its 2026 delivery targets of 80 to 85 commercial aircraft and 160 to 170 executive jets, as it continues to expand production to meet demand across its commercial, executive and defence businesses.
