By Thomas Blackwood
May 8, 2026, © Leeham News: Embraer has posted its best first quarter results in the Brazilian planemaker’s history, as increased demand for its defense products boosted its profitability.
Adjusted EBIT reached $94 million for the period, with a margin of 6.5% (versus 5.6% a year earlier), on revenues of $1.4 billion – the highest level the company has ever achieved and a 31% year-over-year (yoy) increase.
Embraer said this was as a result of strong showing across both its defense and commercial air transport divisions.
But it was the former that was a stand-out performer. Its Defense & Security unit generated revenues of $227 million, an increase of 63% over the previous year, driven by the KC-390 and A-29 Super Tucano. Notably, the adjusted EBIT margin rose from -1.6% to 17% yoy.
This week, Embraer signed a partnership agreement with Generation 5 Holding, a UAE-based defense and technology company, to develop MRO capabilities and after-sales support for the C-390 Millennium multi-mission military transport aircraft in the UAE and the wider Middle East.
Embraer also plans to ramp KC‑390 deliveries from about six aircraft in 2026 to 10 per year by the end of the decade, while capacity expansion is underway in Brazil and via potential localized final assembly lines in India and the US.
Demand up across the board
The Commercial Aviation business achieved quarterly revenues of $293 million, a 45% increase over the same period of 2025, thanks to both higher volumes and prices.
In Executive Jets, revenues totaled $418 million in the quarter, 30% higher yoy, driven by strong demand and launch of the new Praetor 500E and 600E. Services & Support recorded revenues of $490 million in the quarter – 15% growth.
The upwards trajectory of Embraer’s balance sheet is matched by its production numbers. Embraer delivered 44 aircraft in the first quarter of 2026, a 47% increase compared with 30 aircraft delivered in the first quarter of 2025.
Ten of the deliveries were commercial jets (four E2s and six E1s), 29 were executive jets (16 small and 13 medium) and five were defense related (one KC-390 Millennium and four A-29 Super Tucano).
Embraer’s key financial indicators for Q126. Photo: Embraer
The company’s backlog has now reached US$32.1 billion, up 22% yoy and its sixth consecutive all‑time high.
Narrowing in on the commercial aviation backlog, this stands at $15 billion, up 50% YoY, with a book‑to‑bill ratio of more than 1 over the last 12 months.
Options also total about $20 billion, which could push the backlog beyond $50 billion over time if exercised.
Adjusted free cash flow without Eve was -$447.1 million, which Embraer said was explained by preparation for a higher number of aircraft deliveries in the coming months.
Progress on supply chain stabilisation
On the supply chain, significant progress has been made in stabilizing production, especially in executive jets, where production is now close to the desired level.
The commercial division still faces some “pacers” in the supply chain (notably some suppliers), but Francisco Gomes Neto, Embraer’s CEO, said on the call with analysts and the media on Friday morning that the “situation is improving, regarding engines specifically.”
He said: “We continue to see tangible progress in production leveling and greater stability across our assembly lines.
“This gives us confidence, not only to deliver on our 2026 guidance, but also to pursue our mid term ambition of double digit billion revenues and double digit EBIT margins.”
Neto added that Q2 2026 was already “off to a great start,” but cautioned that sales of the E2 family may not match the highs of last year.
“We have campaigns in almost all the regions for E‑Jets. We normally do not disclose the campaigns, but we are optimistic that we will have a good year as well, not as good as last year, because last year we had amazing sales of E‑Jets, but this year is going to be good as well,” he said.
No impact from Iran conflict, says Neto
Turning to the Iran conflict, Neto said that it had not yet started filtering through to the purchasing behavior of Embraer’s customers.
“We are closely monitoring the situation; rising costs may impact airlines, fleet expansion and renewal plans, however, at this time, there is no direct impact on Embraer, so we don’t see any diminished interest in new campaigns or any movements to delay deliveries.”
Tariffs are having a material impact, however. Felipe Santana Santiago de Lima, Embraer’s new Chief Financial Officer, said the company saw “the impact on the first quarter of $30 million, mainly related to inventory effects,” and that this would also stretch into the second quarter of 2026.
On the EVE program, Neto said there had been “steady progress”. The test campaign is transitioning towards horizontal flights in the second quarter, and the prototype has completed more than 50 flights over a total of two hours and 17 minutes of flight time in the year to date.
Embraer also used the earnings release to reiterate its full-year 2026 guidance. The company said it still expected Commercial Aviation deliveries of between 80 and 85 aircraft and Executive Aviation deliveries between 160 and 170 aircraft.
Revenues are forecast in the $8.2-8.5 billion range, with adjusted EBIT margin between 8.7% and 9.3% and adjusted free cash flow without Eve of $200 million or higher for the year.
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