Embraer S.A. (EMBJ) delivered a standout second quarter in 2026, reporting earnings of $1.19 per American Depositary Share, blowing past the Zacks Consensus Estimate of 61 cents by 95.1%.
That result represented a 177.4% surge compared to the 43 cents per ADS the Brazilian aerospace giant posted in the same period a year ago.
On a GAAP basis, the company earned 30 cents per ADS, up from 11 cents recorded in the second quarter of 2025.
Total revenues came in at $2.24 billion, a 22.9% increase year over year, topping the Zacks Consensus Estimate of $2.05 billion by 8.9%.
Revenue gains were broad-based, reflecting stronger activity across Executive Aviation, Defense and Security, Commercial Aviation, and Services and Support segments.
Embraer delivered 65 aircraft during the quarter, up 6.6% from 61 deliveries in the same period last year, with Executive Aviation deliveries jumping to 45 from 38.
The company’s firm order backlog hit a record $34.5 billion, rising 16% year over year, with Defense and Security leading segment growth at 42% to reach $6.1 billion.
Operating income reached $285.8 million for the quarter, compared with $179.5 million in the second quarter of 2025, reflecting the company’s broad operational momentum.
Adjusted EBITDA climbed to $355.6 million from $245.5 million a year ago, while adjusted free cash flow excluding Eve totaled $401 million versus a cash outflow of $161.6 million in the prior-year period.
Executive Aviation was a standout segment, with revenues climbing 32% to $725 million and adjusted EBIT margin expanding sharply to 23.4% from 14.5% a year earlier.
Defense and Security revenues rose 38% to $304 million on stronger KC-390 revenue recognition, with adjusted EBIT margin improving to 11.9% from 9.2%.
Services and Support revenues advanced 24% to $565 million, while its adjusted EBIT margin increased to 18.7% from 15.5%, continuing to demonstrate the segment’s profitability strength.
Commercial Aviation revenues grew 8% to $625 million, though its adjusted EBIT margin slipped to 2.9% from 4.3% in the year-ago period.
As of June 30, 2026, Embraer held cash and cash equivalents of $1.39 billion, compared with $1.95 billion at the close of 2025.
Embraer maintained its full-year delivery outlook of 80 to 85 Commercial Aviation aircraft and 160 to 170 Executive Aviation aircraft for 2026.
The company also reaffirmed its revenue guidance range of $8.2 billion to $8.5 billion, even as the Zacks Consensus Estimate of $8.52 billion sits at the upper end of that range.
Embraer raised its adjusted EBIT margin guidance to a range of 10% to 10.6%, up from its prior outlook of 8.7% to 9.3%, reflecting growing confidence in profitability.
The company also lifted its adjusted free cash flow outlook excluding Eve to at least $400 million, doubling the prior floor of at least $200 million.
Embraer currently carries a Zacks Rank of 2, or Buy, as the company heads into the second half of 2026 with record backlog and upgraded financial targets.
