Brazilian aircraft maker Embraer has raised its financial outlook for 2026 after reporting a 38.4 per cent increase in adjusted net income in the second quarter, helped by higher revenue, stronger operations and improved cash generation.
The company’s adjusted net income rose to $218.6m in the three months to June, from $158m a year earlier.
Revenue increased by 23 per cent year-on-year to $2.2bn, marking Embraer’s highest second-quarter revenue on record.
The strong performance in the April-June period also saw adjusted free cash flow, excluding Eve, the company’s electric air mobility business, reach $401m.
Embraer attributed the result to stronger operating performance, increased sales-related prepayment inflows and an extraordinary tax credit.
The aircraft manufacturer said the tax credit, tariff exemptions and an improved business outlook supported its decision to upgrade its full-year financial projections.
For 2026, Embraer now expects an adjusted EBIT margin of between 10 per cent and 10.6 per cent, compared with its previous forecast of 8.7 per cent to 9.3 per cent.
The company also raised its adjusted free cash flow target, excluding Eve, to at least $400m, double its earlier forecast of $200m or more.
Embraer’s order book provided another boost, reaching a record $34.5bn at the end of the second quarter. The backlog was 16 per cent higher than the figure recorded a year earlier.
The manufacturer delivered 65 aircraft during the quarter, describing the performance as its strongest second-quarter delivery result in 16 years.
The total represented a 17 per cent increase from the corresponding period of 2025, with commercial aviation accounting for 20 aircraft and executive aviation for 45.
No aircraft were delivered by the company’s Defence and Security division during the quarter.
Despite the strong quarterly performance, Embraer maintained its existing delivery targets for the year. It expects to deliver between 80 and 85 commercial aircraft and between 160 and 170 executive jets in 2026.
Executive aviation was a major contributor to the quarter’s revenue growth, generating $725m, up 32 per cent from the same period last year.
Embraer attributed the division’s performance to higher delivery volumes and a favourable product mix.
Revenue from the Defence & Security division also increased substantially, rising 38 per cent year-on-year to $304m.
According to the company, the growth was driven by stronger recognition of revenue from its KC-390 Millennium programme, reflecting customer mix and the stage of the products being delivered.
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