Embraer S.A. Q3 2026 Earnings Recap

Embraer’s shares rose 7.0% after the company reported record third-quarter revenue and raised its 2026 revenue and free-cash-flow guidance. The unchanged adjusted EBIT margin outlook and lower year-over-year net income temper the upbeat headline.

Key Takeaways

• Revenue increased 17% year over year to $2.35 billion; adjusted EBIT margin was 10.9%, versus 8.6% a year earlier (9.4% excluding U.S. import tariffs).
• Embraer raised 2026 revenue guidance to $8.4–$8.6 billion and said it was also increasing free-cash-flow guidance; adjusted EBIT margin guidance remains 10%–10.6%. The transcript cuts off before the revised free-cash-flow range.
• Backlog reached a record $35.7 billion, up 14% year over year. Defense & Security led growth at 56%, while Commercial Aviation backlog rose 4%.
• Adjusted net income fell to $74 million from a 4.2% margin a year earlier to 3.1%, mainly reflecting higher financial expenses and taxes.
• Fourth-quarter Commercial Aviation margins are expected to be broadly in line with last year’s average; Defense EBIT margins are not expected to match the strong second- and third-quarter levels.