Embraer Reports Record Q3 Revenue of $2.3 Billion and Raises 2026 Guidance

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Embraer posted its highest third-quarter revenue in company history, reaching $2.3 billion—a 17% year-over-year (YoY) increase driven by strong performance across all business units. On the back of robust operational execution and accelerating momentum in its defense and services divisions, the Brazilian aerospace manufacturer officially raised its full-year financial guidance for 2026.

Operational Strength and Upgraded Annual Financial Guidance

The company’s operational efficiency was reflected in widespread margin expansion and strengthening financial metrics during the third quarter of 2026 (3Q26):

Adjusted Operating Result (EBIT – Earnings Before Interest and Taxes): Reached $254.8 million, delivering an operating margin of 10.9%, up from the 8.6% reported in the third quarter of 2025 (3Q25).
Adjusted Free Cash Flow (excluding Eve): Closed at $627.7 million, bolstered by strong operational performance and substantial pre-delivery payment (PDP) inflows linked to sales.
Adjusted Net Income: Totaled $73.6 million for the quarter (excluding $2.5 million in extraordinary items related to Eve), compared to $84.3 million in 3Q25. The year-over-year decline was primarily driven by higher net financial expenses and income taxes.
Net Income Attributable to Shareholders: Stood at $71.1 million, compared to $116.6 million recorded in 3Q25.

In terms of capital allocation, Embraer’s standalone capital expenditures (CapEx) totaled $149.7 million between July and September (compared to $98.6 million in 3Q25). On a consolidated basis, accounting for both Embraer and Eve, investments reached $219.0 million, up from $153.4 million in the prior-year period.

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Upward Revision to Full-Year 2026 Guidance

Consistent execution and favorable prospects across key business lines led the manufacturer to revise its targets for the current fiscal year:

Consolidated Revenue: Now projected in the range of $8.4 billion to $8.6 billion (up from the previous outlook of $8.2 billion to $8.5 billion).
Adjusted Free Cash Flow (excluding Eve): Expected to reach $700 million or higher, significantly raising the previous floor of $400 million or more.

Commercial Performance by Business Segment

All corporate business units delivered notable gains during the quarter, driven by strong pricing momentum and delivery volumes.

Commercial and Executive Aviation

Commercial Aviation: Generated $696 million in revenue, a 13% YoY increase underpinned by higher delivery volumes and improved pricing realization.
Executive Aviation: Reported $655 million in net revenues, up 12% YoY, driven by higher price points and a favorable product mix.

Services, Support, and Defense

Services & Support: Marked the company’s highest relative growth during the quarter, surging 30% YoY to $638 million, fueled by expanding fleet activity and higher overall volumes across all business units.
Defense & Security: Recorded revenue of $341 million, up 22% compared to 3Q25. Growth was driven by increased revenue recognition on the KC-390 Millennium multi-mission transport aircraft, stemming from higher unit volumes, customer mix, and current product development phases.

Deliveries and Firm Order Backlog Reach Historic Highs

Embraer delivered a total of 66 aircraft in 3Q26, representing a 6% increase compared to the 62 units handed over in the prior-year period:

22 Commercial Jets: Evenly split between 11 first-generation E-Jets (E1) and 11 new-generation E2 airliners.
41 Executive Jets: Comprising 22 light jets and 19 midsize jets.
3 Defense Aircraft: Including 1 KC-390 Millennium and 2 A-29 Super Tucano light attack and advanced trainer turboprops.

The company’s firm order backlog reached a new historic milestone of $35.7 billion, up 3% from the previous quarter’s record and a 14% increase compared to 3Q25, solidifying revenue visibility for the aerospace manufacturer in the quarters ahead.