Embraer Second Quarter Backlog Hits Record US$34.5 Billion
Brazil · Companies
Key Facts
—Total firm order backlog US$34.5 billion, a record high
—Quarterly revenue US$1.82 billion
—Net income US$79.4 million
—Aircraft deliveries 65 total (20 commercial, 45 executive)
—Defense revenue growth Approximately 42% year-on-year
Embraer second quarter results for 2026 pushed the Brazilian aerospace champion to a record firm order backlog of US$34.5 billion, the company reported on July 24. The performance marked the seventh consecutive record quarter for the São José dos Campos-based manufacturer, driven by a sharp rise in defense revenue and solid executive jet deliveries.
Embraer Second Quarter in Numbers
For foreign investors and expats following Latin America, Embraer (Empresa Brasileira de Aeronáutica) is Brazil’s leading aerospace company and the world’s third-largest commercial aircraft maker, behind only Boeing and Airbus. It designs and builds jets for commercial airlines, executive clients, and military forces, while also running a large services and support network.
The company is a publicly traded entity listed on Brazil’s B3 stock exchange and on the New York Stock Exchange. Its performance is often seen as a barometer for Brazilian industrial exports and high-tech manufacturing.
A “firm order backlog” represents signed contracts for aircraft that have not yet been built or delivered. It gives investors a window into future revenue, because each jet in the queue will eventually turn into recognized sales once it leaves the factory.
A rising backlog generally signals that airlines and governments are confident enough to commit capital years in advance.
The São José dos Campos industrial base, located in São Paulo state, is the heart of Embraer’s engineering and production operations. The cluster of skilled labor and suppliers there has made the region one of Latin America’s most important aerospace hubs.
Financial Performance and Profitability
Embraer posted quarterly revenue of US$1.82 billion in the second quarter. Adjusted earnings before interest and taxes (EBIT) reached US$198.8 million, yielding an adjusted EBIT margin of 10.9%.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at US$273.4 million, with an adjusted EBITDA margin of 15.0%. Net income attributable to shareholders was US$79.4 million.
The company generated US$172.0 million in adjusted free cash flow. Reported free cash flow, after working-capital and other effects, was a near-breakeven US$-0.2 million.
For readers less familiar with financial jargon, EBIT strips out the cost of debt and taxes to show how profitable the core operations are. EBITDA goes a step further by also removing non-cash charges like depreciation, which reflects the gradual aging of factory equipment and tooling.
Free cash flow, meanwhile, is the money left after essential investments—it is a practical gauge of whether a company can fund growth, pay dividends, or reduce debt without leaning on outside capital.
The contrast between the adjusted free cash flow of US$172 million and the near-breakeven reported figure is worth understanding. Adjustments typically exclude one-time items or working-capital swings tied to the timing of supplier payments and customer receipts, which can temporarily mask the underlying cash generation of the business.
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Deliveries and Operational Momentum
Embraer delivered 65 aircraft during the period, comprising 20 commercial jets and 45 executive jets. This was the strongest second-quarter delivery performance in 16 years.
The delivery mix highlights the company’s dual focus. The commercial division ships E-Jets to regional airlines worldwide, while the executive aviation unit produces Phenom and Praetor business jets for corporate and private clients.
It is important to separate these operational deliveries from the order announcements made at the Farnborough International Airshow. Those new sales bookings will feed the backlog but are not recognized as revenue until aircraft are delivered.
A 16-year high in second-quarter deliveries suggests that production lines are running at a pace not seen since the late 2000s. That period preceded a global financial crisis that reshaped aviation demand, so the current tempo indicates a markedly different operating environment.
Segment Mix and Backlog Breakdown
The record US$34.5 billion firm order backlog was distributed across four segments. Commercial Aviation accounted for US$15.1 billion, reflecting sustained demand for narrow-body regional jets.
Executive Aviation held a backlog of US$7.4 billion. Defense & Security followed with US$6.1 billion, while Services & Support contributed US$5.5 billion.
The Defense & Security unit stood out operationally, with revenue rising approximately 42% year-on-year. This jump aligns with the segment’s backlog growth and includes sales of the C-390 Millennium military transport aircraft to international air forces.
The C-390 Millennium is a multi-mission military transport jet that competes with older turboprop designs in the medium-lift category. Its appeal to foreign air forces lies in its ability to carry heavy cargo, perform medical evacuations, and operate from short or unpaved runways—capabilities that have helped Embraer diversify beyond its commercial-aviation roots.
The Services & Support segment, while sometimes overlooked, provides a steady stream of income from maintenance, training, and parts. This recurring revenue can cushion the company during periods when new-aircraft orders temporarily soften.
2026 Guidance Reaffirmed
Embraer’s management reaffirmed its full-year 2026 guidance in the earnings release. The company expects to deliver between 77 and 85 commercial aircraft and between 145 and 155 executive jets.
Total revenue for the year is projected in a range of US$7.0 billion to US$7.5 billion. The adjusted EBIT margin is forecast between 7.5% and 8.3%.
Adjusted free cash flow is expected to be US$200 million or higher for the full year. The reaffirmed outlook signals confidence that supply-chain and production rates will support the record backlog conversion.
Guidance is essentially a company’s public estimate of its own near-term performance. When management reaffirms it, they are telling the market that internal production schedules, supplier commitments, and demand signals remain on track.
For a manufacturer with a complex global supply chain, that stability is not automatic—it depends on everything from engine deliveries to the availability of skilled technicians.
What This Means for Foreign Observers
For international investors, the results reinforce Embraer’s position as a resilient Latin American industrial exporter. The company’s ability to grow its defense revenue while maintaining a record commercial backlog diversifies its risk profile.
The seventh straight record quarter also highlights disciplined execution in a global aerospace market still navigating supply-chain bottlenecks. With a US$34.5 billion backlog, Embraer has strong revenue visibility stretching across several years.
For expats living in Brazil, the company’s health matters beyond the stock ticker. Embraer is a major employer of engineers and technicians, and its export earnings help support the Brazilian real.
A strong order book can also influence the economic mood in São José dos Campos and the surrounding industrial corridor.
Looking ahead, several open questions will shape the story. Can the defense segment sustain its rapid growth rate as comparisons become tougher?
Will the commercial delivery pace accelerate enough to meet the upper end of the annual target? And how will global interest-rate movements affect airline fleet-planning decisions that ultimately determine future backlog additions?
These are the threads worth watching as the year unfolds.
Connected Coverage
Related reporting from The Rio Times: Embraer Farnborough Orders Span Spain, Luxembourg, Japan.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What was Embraer’s net income in the second quarter of 2026?
Embraer reported a net income of US$79.4 million in the second quarter of 2026.
How many aircraft did Embraer deliver in Q2 2026?
Embraer delivered 65 total aircraft in Q2 2026, consisting of 20 commercial jets and 45 executive jets.
What is Embraer’s total firm order backlog?
Embraer’s total firm order backlog reached a record US$34.5 billion at the end of the second quarter of 2026.
Sources: Embraer.
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