Embraer's Second-Quarter Earnings and Revenues Surpass Estimates

Embraer S.A. EMBJ reported second-quarter 2026 earnings of $1.19 per American Depository Share (“ADS”), beating the Zacks Consensus Estimate of 61 cents by 95.1%. The bottom line surged 177.4% from 43 cents per ADS a year ago.

The company reported GAAP earnings of 30 cents per ADS compared with 11 cents in the second quarter of 2025.

Embraer’s Total Revenues

Revenues of $2.24 billion increased 22.9% year over year and topped the Zacks Consensus Estimate of $2.05 billion by 8.9%. The revenue increase reflected higher activity across Executive Aviation, Defense & Security, Commercial Aviation and Services & Support.

Embraer's Deliveries and Backlog Climb

Embraer delivered 65 aircraft in the quarter, up 6.6% from 61 a year ago. Commercial Aviation deliveries rose to 20 aircraft from 19, while Executive Aviation deliveries increased to 45 from 38.

The company-wide firm order backlog reached a record $34.5 billion, up 16% year over year. Commercial Aviation backlog rose 15% to $15.1 billion, Executive Aviation increased 5% to $7.8 billion, Defense & Security climbed 42% to $6.1 billion, and Services & Support advanced 12% to $5.5 billion.

EMBJ’s Segmental Details

Executive Aviation: This segment’s revenues climbed 32% to $725 million, supported by higher volumes and product mix. Its adjusted EBIT margin expanded to 23.4% from 14.5%.

Defense & Security: This segment’s revenues rose 38% to $304 million on stronger KC-390 revenue recognition tied to customer mix and product stage. Its adjusted EBIT margin improved to 11.9% from 9.2%. 

Commercial Aviation: Revenues increased 8% year over year to $625 million, mainly on higher volumes. Its adjusted EBIT margin declined to 2.9% from 4.3%.

Services & Support: This segment’s revenues advanced 24% to $565 million, while its adjusted EBIT margin increased to 18.7% from 15.5%.

Others: This segment includes ERJ’s Agricultural Aviation, cyber division Tempest, the landing gear division and other businesses. Revenues for this segment declined 6% to $15 million, primarily reflecting lower deliveries in agricultural aviation during the quarter.

Operational Highlights of EMBJ

Embraer’s operating income amounted to $285.8 million compared with $179.5 million in the second quarter of 2025.

The company posted adjusted EBITDA of $355.6 million compared with $245.5 million a year ago.

Financial Update of EMBJ

As of June 30, 2026, EMBJ’s cash and cash equivalents amounted to $1.39 billion compared with $1.95 billion as of Dec. 31, 2025.

Its adjusted free cash flow (without Eve) for the second quarter of 2026 totaled $401 million against the adjusted free cash outflow of $161.6 million in the prior-year period.

The net cash provided by operating activities during the first six months of 2026 amounted to $204.4 million against the net cash outflow from operating activities of $134.1 million during the first six months of 2025.

Embraer’s 2026 Guidance

Embraer continues to expect 80-85 Commercial Aviation deliveries and 160-170 Executive Aviation deliveries in 2026.

The company also maintained its revenue outlook of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.52 billion, which is higher than the company’s guided range.

EMBJ raised its adjusted EBIT margin guidance to 10-10.6% from 8.7-9.3%. It also lifted its adjusted free cash flow outlook excluding Eve to at least $400 million from at least $200 million.

EMBJ’s Zacks Rank

Embraer currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.

Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.

Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.

NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.

Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. 

The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.

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