Q1 2026 Embraer SA Earnings Call Transcript
Key Points
- Embraer SA (EMBJ) achieved the strongest first quarter revenue in its history, with the highest aircraft deliveries in a decade.
- The company reported a record backlog of $32 billion, up 22% year-on-year, marking the sixth consecutive historical record.
- Commercial Aviation saw significant orders, including 18 E195 E2 jets from Finnair and a major purchase agreement from the UAE for 10 C-390 aircraft plus 10 options.
- Executive Aviation experienced its best first quarter of the decade, driven by strong demand and the launch of new models, Praetor 500E and 600E.
- Defense and Security segment reported double-digit revenue growth, with a new partnership with Northrop Grumman for the U.S. and gas program.
- Adjusted EBIT for Commercial Aviation was negative $28 million, with a negative 9.7% margin, due to client mix, logistics costs, and absence of supplier credits.
- Executive Aviation margins were pressured by U.S. import tariffs, client mix, and higher selling expenses.
- Adjusted free cash flow excluding EVE was negative $447 million, reflecting preparation for higher aircraft deliveries.
- Logistics costs impacted the first quarter by approximately $7 million, affecting margins.
- The company faces ongoing challenges in leveling production, particularly in commercial jets, due to supply chain issues.
Good morning, ladies and gentlemen, and thanks for standing by.
As a reminder, this conference is being recorded. Its broadcast is intended exclusively for the participants of this event, and may not be reproduced or retransmitted without the express authorization of Embraer.
This conference call will be conducted in English, but please let me say a short announcement for Portuguese speakers.
As a conferencia sera haere desada original ancient English.
My name is Guy Paiva, and I'm the Head of Investor Relations, M&A and Venture Capital for Embraer.
Welcome to Embraer's First Quarter 2026 Earnings Conference Call.
The numbers in this presentation contain non-GAAP financial information. To help investors reconcile EAVE's financial information in GAAP standards to Embraer's IFRS.
We remind you, EAVE's results were discussed at the company's conference call earlier this week.
Before we begin, a little notice
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