Embraer posted record 2Q26 revenue of $2.2 billion, up 23% year over year and its strongest second quarter ever. Adjusted EPS of $1.19 crushed the $0.61 consensus by 95%. Backlog hit a new all-time high of $34.5 billion, up 16% year over year — the seventh consecutive quarter of record backlog growth. The company raised full-year adjusted EBIT margin guidance to 10-10.6%, from 8.7-9.3%, and doubled its free cash flow floor to at least $400 million.
Revenue and delivery guidance for the year, notably, didn’t move at all — still $8.2-8.5 billion, still 80-85 commercial deliveries
and 160-170 executive jets. Everything raised was about profitability, nothing about volume. That’s worth pondering before accepting the headline at face value. Because the industry’s lessons are there to see. And harvesting with no clear planting sends a signal.
The Segment the Headline Doesn’t Feature
Commercial Aviation is the one most of the Embraer coverage this year has centered on — grew revenue 8% to $625 million. Its adjusted EBIT margin declined year over year, to 2.9%, which management attributed directly to unfavorable customer mix, including legacy contracts. The segment carrying Embraer’s entire “best available slot in a sold-out market” narrative is currently the least profitable part of the company on a margin basis.
Embraer posted record 2Q26 revenue of $2.2 billion, up 23% year over year and its strongest second quarter ever. Adjusted EPS of $1.19 crushed the $0.61 consensus by 95%. Backlog hit a new all-time high of $34.5 billion, up 16% year over year — the seventh consecutive quarter of record backlog growth. The company raised full-year adjusted EBIT margin guidance to 10-10.6%, from 8.7-9.3%, and doubled its free cash flow floor to at least $400 million.
Revenue and delivery guidance for the year, notably, didn’t move at all — still $8.2-8.5 billion, still 80-85 commercial deliveries and 160-170 executive jets. Everything raised was about profitability, nothing about volume. That’s worth pondering before accepting the headline at face value. Because the industry’s lessons are there to see. And harvesting with no clear planting sends a signal.
We can run a focused 15–20 minute walkthrough on the implications for your specific programs or risk exposure — or put together a custom subscription proposal.
We use cookies to optimize our website and our service.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
