Strong Q1 revenue and record backlog confirm robust demand, but the sharp decline in adjusted net income and deeply negative free cash flow due to inventory build warrant caution. Monitor upcoming quarterly deliveries to see if the cash conversion cycle improves as expected. The reiterated guidance provides a positive forward anchor.
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Executive Summary
Embraer reported record Q1 2026 revenue of $1,447 million (+31% YoY) and a record backlog of $32.1 billion (+22% YoY), driven by strong growth across all segments. However, adjusted net income fell to $27.7 million from $50.0 million a year ago, and adjusted free cash flow was deeply negative at -$447.1 million due to inventory build for future deliveries. The company reiterated its 2026 guidance for revenue of $8.2-$8.5 billion and adjusted EBIT margin of 8.7%-9.3%.
Key Facts
- Revenue of $1,447 million in Q1 2026, a record for Q1 and +31% YoY
- Adjusted EBIT of $94.0 million with a 6.5% margin, up from 5.6% in Q1 2025
- Firm order backlog reached an all-time high of $32.1 billion, +22% YoY
- Deliveries of 44 aircraft in Q1 2026, +47% YoY
- Adjusted free cash flow (w/o Eve) was -$447.1 million, driven by $399.5 million inventory build
- Adjusted net income fell to $27.7 million from $50.0 million in Q1 2025
- 2026 guidance reiterated: revenue $8.2-$8.5 billion, adjusted EBIT margin 8.7%-9.3%
- U.S. import tariffs totaled $13 million in Q1 2026 (92bp impact)
Financial Impact
Revenue up 31% YoY to $1,447 million; adjusted EBIT up 52% to $94 million; backlog up 22% to $32.1 billion; free cash flow -$447 million
Risk Factors
- U.S. import tariffs of $13 million in Q1 (92bp) and $11 million in inventory for Q2 2026 could pressure margins
- Negative free cash flow of -$447 million may raise liquidity concerns if inventory build does not convert to deliveries
- Adjusted net income fell 45% YoY despite revenue growth, indicating margin pressure or higher costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001292814-26-002893 |
| Document: 0001292814-26-002893-index-headers.html | 0001292814-26-002893 |
| Document: 0001292814-26-002893-index.html | 0001292814-26-002893 |
| Document: 0001292814-26-002893.txt | 0001292814-26-002893 |
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%) |
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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%) |
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