Q2 2026 Embraer S.A. Earnings Call Transcript
Key Points
- Embraer SA (EMBJ) delivered its strongest second-quarter revenue in history, with total company deliveries up nearly 7% year-over-year.
- The company achieved a new all-time high backlog of $34.5 billion, marking the seventh consecutive quarter of record backlog growth.
- Executive Aviation posted record second-quarter revenues and deliveries, with adjusted EBIT margin reaching 23.4% (16.1% excluding one-time items).
- Defense & Security secured a landmark order from the UAE for 10 C-390 aircraft, the platform's first Middle East selection and largest international order to date.
- The company raised its 2026 adjusted EBIT margin guidance to 10%-10.6% and adjusted free cash flow guidance to $400 million or higher, reflecting strong operational performance.
- Commercial Aviation adjusted EBIT margin declined year-over-year to 2.9% due to unfavorable customer mix, including legacy contracts.
- The company recorded approximately $8 million in US import tariffs during the quarter, with an additional $12 million in annual indirect tariff costs expected, particularly impacting Services & Support.
- Executive Aviation margins were temporarily boosted by an extraordinary tax credit of $68 million and tariff refunds, which are non-recurring items.
- Supply chain issues persist, with some suppliers still delivering parts late, forcing aircraft to be moved late in the production line, though improving.
- The company's adjusted EBIT margin for the first half was 10.6%, which, while above the five-year average, still reflects ongoing cost pressures and the need for continued efficiency gains.
Good morning, ladies and gentlemen. 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.
(spoken in foreign language) (interpreted)
My name is Gui Paiva. And I am the head of Investor Relations, M&A, and the Venture Capital for Embraer. Welcome to Embraer's second-quarter 2026 earnings conference call.
The numbers in this presentation contain non-GAAP financial information to help investors reconcile Eve's financial information in GAAP standards to Embraer's IFRS.
We remind you Eve's results were already discussed at the company's conference call last week.
Before we begin, a legal notice to everyone. This presentation may contain forward-looking
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