Embraer (EMBR3) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter revenue of $1,447 million 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, new Praetor models, and record revenues.

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

• 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, surpassing the five-year average.

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

• Adjusted net income was $27.7 million, with EPS at $1.91; margin declined to 1.9%.

• Adjusted free cash flow (excluding Eve) was -$447 million, reflecting inventory build for future deliveries.

• Cash position at quarter-end was $2,298.6 million, with an undrawn $1.0 billion revolver.

Outlook and guidance

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

• Commercial jet deliveries at 12% of guidance midpoint; executive jets at 18%, both above five-year averages.

• Defense deliveries projected to grow to 10 KC-390s annually by decade's end.

• Production leveling improvements expected, especially for commercial jets, by 2027.