This article is based on an official press release from Embraer.

Embraer Reports Record Q1 2026 Revenue of $1.4 Billion Amid Strong Defense and Commercial Growth

Embraer has reported its highest-ever first-quarter revenue, reaching US$1.4 billion in Q1 2026. According to the company’s official earnings press release published on May 8, 2026, the Brazilian aerospace manufacturers achieved a 31% year-over-year increase in revenue, propelled primarily by robust performances in its Defense & Security and Commercial-Aircraft divisions.

Alongside the record revenue, Embraer announced that its firm order backlog has reached a sixth consecutive all-time high of US$32.1 billion, representing a 22% increase compared to the same period last year. The company delivered 44 aircraft in the first quarter, marking a 47% increase from the 30 aircraft delivered in the opening quarter of 2025.

The result represents a 31% year-over-year (yoy) increase, driven mainly by Defense & Security and Commercial Aviation.

Financial Performance and Delivery Metrics

Revenue and Profitability

According to the company’s financial statements, Embraer reported an adjusted EBIT of US$94 million for the period, achieving a margin of 6.5%, which is an improvement from the 5.6% margin recorded a year earlier. However, adjusted net income saw a decline, totaling US$27.7 million compared to US$50 million in the first quarter of 2025. Supplementary market research indicates this drop was largely influenced by client mix, higher selling expenses, and U.S. import tariffs. Net income attributable to shareholders stood at US$33.4 million, or US$0.1856 per American Depositary Share (ADS).

Cash Flow and Strategic Investments

Embraer reported that its adjusted free cash flow, excluding its Eve Air Mobility subsidiary, was negative US$447.1 million. Market data highlights that this cash consumption was primarily driven by a US$399.5 million increase in inventory. The company is actively building its working capital to support a higher planned delivery rate in the upcoming quarters. Total investments for the period, including Eve, reached US$148.6 million, up from US$124.5 million in Q1 2025.

Business Unit Highlights

Defense & Security Leads Growth

The Defense & Security segment was a standout performer, generating US$227 million in revenue, a 63% year-over-year increase. The company attributes this to stronger revenue recognition for the KC-390 program and increased production rates for the A-29 Super Tucano. The segment’s adjusted EBIT margin rose significantly to 17%.

Broader market reports note a major recent milestone for this division: on May 4, 2026, the United Arab Emirates announced a firm order for 10 C-390 Millennium aircraft, with an option for 10 more. This landmark deal includes local maintenance, repair, and overhaul (MRO) development, marking the aircraft’s first major success in the Middle East.

Commercial and Executive Aviation

Commercial Aviation revenues reached US$293 million, a 45% increase year-over-year, driven by higher volumes and pricing. Market data shows the commercial backlog surged by 50% to US$15.0 billion, aided by a recent order from Finnair for up to 46 E195-E2 aircraft. Executive Jets also performed strongly, with revenues totaling US$418 million, a 30% increase supported by volume growth and product mix. Meanwhile, the Services & Support division recorded US$490 million in revenue, a 15% growth over the previous year.

Eve Air Mobility Updates

Embraer’s urban air mobility subsidiary, Eve, continues to make progress on its electric vertical take-off and landing (eVTOL) aircraft. According to industry research, Eve’s full-scale prototype completed its 50th successful test flight by April 2026, accumulating over two hours of flight time. The company plans to begin transition flight testing by the third quarter of 2026. However, Eve has adjusted its certification and entry-into-service target from 2027 to 2028 to accommodate a full 12 months of rigorous flight testing.

AirPro News analysis

We observe that Embraer’s Q1 2026 results present a mixed picture for investors, balancing exceptional top-line growth against seasonal cash burn. The reported consolidated revenue of US$1.447 billion comfortably exceeded Wall Street forecasts, beating the Zacks consensus estimate of US$1.33 billion. Conversely, adjusted earnings of 19 cents per share missed the consensus estimate of 29 cents.

Aerospace equity analysts generally view the negative free cash flow as a necessary and expected working-capital build. The strategic inventory accumulation of nearly US$400 million is essential to support the aggressive delivery ramp-up planned for the remainder of 2026. Furthermore, Embraer’s decision to reaffirm its full-year guidance, projecting 80–85 commercial jet deliveries, 160–170 executive jet deliveries, and revenues between US$8.2 billion and US$8.5 billion, signals strong management confidence in executing its record US$32.1 billion backlog.

Frequently Asked Questions (FAQ)

What was Embraer’s total revenue for Q1 2026?
Embraer reported a record first-quarter revenue of US$1.4 billion, a 31% increase year-over-year.

How many aircraft did Embraer deliver in the first quarter?
The company delivered 44 aircraft in Q1 2026, comprising 10 commercial, 29 executive, and 5 defense aircraft. This is a 47% increase from Q1 2025.

Why was Embraer’s free cash flow negative in Q1 2026?
The negative adjusted free cash flow of US$447.1 million was primarily due to a US$399.5 million strategic inventory buildup to prepare for higher delivery volumes later in the year.

When is Eve Air Mobility expected to certify its eVTOL?
Eve has adjusted its certification and entry-into-service target to 2028 to allow for comprehensive flight testing.

Sources

• Embraer Q1 2026 Earnings Press Release