Embraer has raised its 2026 revenue and free cash flow guidance after posting third-quarter revenue of $2.35 billion, the highest the Brazilian manufacturer has reported for a third quarter.
The figure, published in the company’s earnings release, was up 17% from $2 billion a year earlier. It follows two consecutive record quarters.
Adjusted earnings before interest and taxes (EBIT) reached $254.8 million, a 10.9% margin, compared with 8.6% a year earlier, or 9.4% excluding US import tariffs. The company recorded no US import tariffs in its Executive Aviation and Services & Support units during the quarter, against $15 million and $2 million a year earlier. Embraer’s second-quarter results cited an exemption from direct US import tariffs in the second half of 2026.
Adjusted net income fell to $73.6 million from $84.3 million, mainly on higher net financial and tax expenses, according to Embraer.
Guidance raised, margin target unchanged
Embraer now expects 2026 revenue of $8.4 billion to $8.6 billion, up from $8.2 billion to $8.5 billion. It also expects adjusted free cash flow excluding Eve Air Mobility of at least $700 million, up from at least $400 million.
Third-quarter adjusted free cash flow excluding Eve was $627.7 million, which Embraer linked to operating performance and pre-delivery payments. That brought the nine-month total to $581.6 million. Net cash excluding Eve stood at $430 million at the end of September 2026, compared with net debt of $214.5 million at the end of June 2026.
The adjusted EBIT margin target was left at 10% to 10.6%, below the 10.7% Embraer posted over the first nine months. Delivery guidance of 80 to 85 commercial jets and 160 to 170 executive jets was also unchanged. Having handed over 52 commercial and 115 executive jets through September 2026, Embraer needs 28 to 33 and 45 to 55 respectively in the fourth quarter to meet it.
KC-390 work lifts defense unit
Defense & Security revenue rose 22% to $341 million, which Embraer attributed to higher KC-390 Millennium revenue recognition tied to volumes, customer mix and product stage. The unit’s adjusted EBIT margin rose to 15.7% from 12.9%, and its backlog was up 56% year over year. Embraer delivered one KC-390 and two A-29 Super Tucanos in the quarter.
The quarter included Colombia’s order for two KC-390s, signed on August 4, 2026, following the United Arab Emirates’ contract for 10 C-390s with 10 options in May 2026. Greece signed for three KC-390s, with options for three more, on November 2, 2026, after the quarter closed.
Elsewhere, Services & Support revenue grew 30% to $638 million, Commercial Aviation 13% to $696 million and Executive Aviation 12% to $655 million. Commercial Aviation’s adjusted EBIT margin rose to 2.4% from 1.3%, mainly on supplier compensation, according to the release. Embraer delivered 66 aircraft in the quarter and ended September 2026 with a record backlog of $35.7 billion.