Embraer Earnings Results - 3rd Quarter 2026

Embraer posts record Q3 results, raises 2026 revenue and cash flow guidance.

What the company is saying

Embraer S.A. is emphasizing operational and financial momentum, highlighting record third quarter revenues of US$2,347 million, a 17% year-over-year increase. The company frames its narrative around improved performance, with a 10.9% adjusted EBIT margin for Q3 and a 6% increase in aircraft deliveries to 66 units. Updated 2026 guidance raises expected revenues to US$8.4–8.6 billion and boosts adjusted free cash flow guidance to US$700 million or higher, up from US$400 million or higher, while maintaining prior delivery and EBIT margin targets. The announcement stresses an all-time high firm order backlog of US$35.7 billion, up 14% year-over-year, and attributes strong cash flow to operating performance and robust pre-delivery payments. The tone is confident and data-driven, focusing on realised gains and near-term targets rather than long-dated projections.

What the data suggests

The disclosed figures confirm a strong operational and financial trajectory. Third quarter revenues reached US$2,347 million, marking an all-time high and a 17% increase from the previous year. Adjusted EBIT for Q3 was US$254.8 million, with a 10.9% margin, up from 10.5% in Q3 2025 and 8.6% (9.4% excluding U.S. tariffs) the prior year, indicating improved profitability. Aircraft deliveries rose 6% year-over-year to 66 units, with 22 commercial jets, 41 executive jets, and 3 defense aircraft delivered. Adjusted free cash flow excluding Eve was US$627.7 million for the quarter, reflecting stronger operations and higher pre-delivery payments. The firm order backlog reached US$35.7 billion, up 14% year-over-year and at a record level. Updated 2026 guidance raises revenue expectations to US$8.4–8.6 billion and free cash flow to US$700 million or higher, while delivery and EBIT margin targets remain unchanged. The numbers support management's claims of improved performance and justify the upward revision in guidance.

Analysis

The announcement's tone is positive but proportionate to the measurable progress disclosed. Half of the key claims are forward-looking (updated 2026 guidance), but the other half are realised, with detailed third quarter 2026 results showing record revenues, improved EBIT margin, strong free cash flow, increased deliveries, and a record backlog. The forward-looking elements (guidance for full-year 2026) are near-term, as the year is already underway and the company is reporting Q3 results. There is no evidence of exaggerated narrative or overstatement: all major claims are supported by hard numbers, and the language does not inflate beyond the facts. No large new capital outlay is disclosed, and the benefits (profitability, cash flow, backlog) are already being realised. The data quality is high, with comprehensive disclosure of both operational and profitability metrics.

Risk flags

• ●Execution risk remains in meeting the upper end of the raised revenue and cash flow guidance, as macroeconomic or supply chain disruptions could impact deliveries in the final quarter.
• ●Sustaining record-level backlog and converting it into revenue depends on continued demand and timely fulfillment, which could be challenged by market volatility or customer deferrals.
• ●The unchanged EBIT margin guidance suggests limited room for further margin expansion, so future profitability gains may rely more on volume growth than on operational leverage.
• ●The company's strong cash flow is partly attributed to pre-delivery payments, which could fluctuate if order momentum slows or if customers seek to renegotiate terms.

Bottom line

Embraer has delivered a record third quarter, with revenues up 17% year-over-year and a 6% increase in aircraft deliveries, supporting a raised full-year revenue guidance to US$8.4–8.6 billion and higher free cash flow expectations. The company is converting a record US$35.7 billion backlog into realised sales, and the Q3 results show improved profitability with a 10.9% EBIT margin. The operational and financial momentum is clear, and the near-term outlook is credible given the year is nearly complete and most targets are within reach. Risks remain around execution in Q4, potential backlog conversion delays, and the sustainability of current cash flow dynamics. Investors should focus on Q4 delivery performance and any signs of order deferrals or margin pressure. The most important takeaway is that Embraer is on a strong upward trajectory, with realised results justifying the raised guidance.

Announcement summary

(NYSE:EMBJ) Embraer S.A. released its third quarter 2026 earnings results. The company updated its 2026 financial guidance, now forecasting revenues in the US$8.4 to US$8.6 billion range, up from the previous US$8.2 to US$8.5 billion. Commercial Aviation deliveries are expected to be between 80 and 85 aircraft for the year, unchanged from prior guidance. Executive Aviation deliveries are expected to be between 160 and 170 aircraft, also unchanged. The company maintains its Adjusted EBIT margin guidance between 10.0% and 10.6%. Adjusted free cash flow excluding Eve is now forecast at US$700 million or higher for the year, up from the previous guidance of US$400 million or higher. Revenues for the third quarter of 2026 totaled US$2,347 million, representing an all-time high for a third quarter and a 17% year-over-year increase. Adjusted EBIT for 3Q26 was US$254.8 million, with a margin of 10.9%, compared to 10.5% in 3Q25 and 8.6% in 3Q25 (9.4% excluding U.S. import tariffs). Adjusted free cash flow excluding Eve was US$627.7 million in the period, attributed to stronger operating performance and solid sales-related pre-delivery payment inflows. Embraer delivered 66 aircraft in 3Q26, including 22 commercial jets (11 E2s and 11 E1s), 41 executive jets (22 small and 19 medium), and 3 defense-related aircraft (1 KC-390 Millennium and 2 A-29 Super Tucano), which is a 6% increase from the 62 aircraft delivered in the same period last year. The firm order backlog reached US$35.7 billion in 3Q26, an all-time high and up 14% year-over-year.

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