Embraer is executing strongly across all business units with record revenue, expanding margins, and massive free cash flow conversion. The raised guidance on both margins and cash flow reinforces the positive trajectory. Traders should watch for continued strength in the backlog and potential upside to the new $400M+ FCF target as production ramps.
Price Chart
Executive Summary
Embraer reported record Q2 2026 revenue of $2.235 billion, up 23% YoY, and delivered 65 aircraft (+7% YoY). Adjusted EBIT was $296.9 million with a 13.3% margin, boosted by a $68 million extraordinary tax credit, while Adjusted free cash flow surged to $401 million. The firm order backlog hit an all-time high of $34.5 billion. Guidance was raised: Adjusted EBIT margin to 10.0%-10.6% (from 8.7%-9.3%) and free cash flow to >$400 million (from >$200 million).
Key Facts
- Record Q2 revenue of $2.235 billion, up 23% YoY.
- 65 aircraft deliveries in Q2 2026, up 7% YoY.
- Firm order backlog reached an all-time high of $34.5 billion, up 16% YoY.
- Adjusted EBIT was $296.9 million (13.3% margin), vs. $191.8 million (10.5% margin) in Q2 2025.
- Adjusted free cash flow w/o Eve was $401 million, vs. a -$161.6 million use in Q2 2025.
- 2026 guidance raised: Adjusted EBIT margin to 10.0%-10.6% (from 8.7%-9.3%), and free cash flow to >$400 million (from >$200 million).
- Commercial Aviation backlog rose 15% YoY; Defense & Security backlog rose 42% YoY.
- Net cash position w/o Eve improved to -$214.5 million from -$688.7 million a year ago.
Financial Impact
Q2 2026 revenue $2.235B (+23% YoY); Adjusted EBIT $296.9M; Adjusted FCF $401M; guidance midpoint for EBIT margin raised 130bp to 10.3%, FCF raised $200M to >$400M.
Risk Factors
- Ongoing exposure to U.S. import tariffs (indirect tariffs of ~$12M/year remain).
- Customer mix in Commercial Aviation weighed on segment margins (Adj. EBIT margin fell to 2.9% from 4.3% YoY).
- Eve (eVTOL subsidiary) continues to burn cash, consuming $49.2M in FCF in Q2 2026.
- The Q2 2026 EBIT and FCF figures were boosted by a $68M extraordinary tax credit, which is non-recurring.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (EMBJ) — Batch item 1 | 0001292814-26-004152 |
| Document: 0001292814-26-004152-index-headers.html | 0001292814-26-004151 |
| Document: 0001292814-26-004152-index.html | 0001292814-26-004152 |
| Document: 0001292814-26-004152.txt | 0001292814-26-004152 |
| 6-K Filing (EMBJ) — Batch item 5 | 0001292814-26-004151 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 6w ago | 6-K | $75.95 $77.02 | ▲ +1.41% | ▲ +1.94% | $75.21 (−0.97%) |
Aug 14, 2026 7w ago | 6-K | $75.38 $75.00 | ▼ −0.50% | ▲ +1.49% | $75.21 (−0.23%) |
Aug 13, 2026 7w ago | Institutional Cluster | $74.22 $75.49 | ▲ +1.71% | ▲ +3.46% | $75.21 (+1.33%) |
Aug 10, 2026 7w ago | 6-K | $73.80 $73.91 | ▲ +0.15% | ▲ +1.06% | $75.21 (+1.91%) |
Aug 10, 2026 7w ago | 6-K | $73.80 $73.91 | ▲ +0.15% | ▲ +1.06% | $75.21 (+1.91%) |
Jul 24, 2026 10w ago | 6-K | $67.99 $76.26 | ▲ +12.16% | ▲ +8.86% | $75.21 (+10.62%) |
Jul 21, 2026 10w ago | 6-K | $65.47 $77.08 | ▲ +17.73% | ▲ +15.17% | $75.21 (+14.88%) |
Jul 21, 2026 10w ago | 6-K | $65.47 $77.08 | ▲ +17.73% | ▲ +15.17% | $75.21 (+14.88%) |
Jun 5, 2026 17w ago | 6-K | $56.68 $67.24 | ▲ +18.63% | ▲ +16.77% | $75.21 (+32.69%) |
May 8, 2026 21w ago | 6-K | $60.11 $56.68 | ▼ −5.71% | ▼ −5.73% | $75.21 (+25.12%) |
US Market Status
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