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Saturday, September 5, 2026

Embraer Teams With Northrop to Pitch KC-390 to Pentagon

By · February 20, 2026 · 3 min read

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Key Points
Embraer and Northrop Grumman signed a memorandum of understanding to develop an autonomous boom refueling system for the KC-390 Millennium, targeting U.S. Air Force and allied contracts
The boom would let the KC-390 refuel F-35s and other aircraft that use the boom-and-receptacle method standard across the U.S. Air Force fleet
Northrop is positioning the upgraded KC-390 as the midsize piece of a three-tier tanker strategy it plans to offer under the Pentagon’s next-generation refueling program

Brazil’s Embraer has landed the heavyweight American defense partner it has long sought. Northrop Grumman announced Thursday from its Melbourne, Florida facility that the two companies signed a memorandum of understanding to jointly develop an upgraded KC-390 Millennium equipped with an autonomous aerial refueling boom, enhanced communications, situational awareness, and survivability systems.

The target market is clear: the U.S. Air Force and allied nations operating boom-dependent aircraft like the F-35. The KC-390 currently refuels planes using the probe-and-drogue method favored by the U.S. Navy and Marines, but the Air Force exclusively uses boom-and-receptacle across its fleet of over 530 tankers.

Embraer Teams With Northrop to Pitch KC-390 to Pentagon.
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Northrop’s three-tier tanker play

The partnership fits into a broader Northrop strategy. According to Aviation Week, the company plans to offer the Pentagon a three-pronged package under its Next-Generation Air Refueling System program: a large blended-wing-body tanker being developed with JetZero, the KC-390 as a midsize tactical refueler, and a small uncrewed tanker.

The KC-390’s appeal for the tactical role rests on its ability to operate from austere airfields with soft-soil runways — a key requirement under the Air Force’s Agile Combat Employment doctrine, which envisions dispersed operations from remote locations across the Indo-Pacific.

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Embraer
NYSE: ERJEMBJ3IndustrialsAerospace & Defense20,923 employees
$12.33B
Market cap
Analyst target $68.50

Wall Street view

3.9Moderate Buy/ 5
10 Buy3 Hold1 Sell
Avg. price target $68.50  ·  +30% vs 200-day

Valuation & profitability

Market cap$12.33B
Revenue (TTM)$39.80B
P / E ratio37.7
Profit margin5.4%
Return on equity11.3%

Price & risk

52-wk low
$55.53
52-wk high
$66.87
Beta (volatility)0.92
200-day average$52.79

Revenue trend · 6y

20192024
Latest $6.39B

Ownership

Institutions46.0%
Shares outstanding183M
Top holderGQG Partners LLC
Institutional holders5+ funds

Dividend

Yield0.1%
Payout ratio31.0%
Fwd. annual$0.05
What Embraer does. Embraer S.A., together with its subsidiaries, designs, develops, manufactures, and sells aircraft and systems worldwide. It operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets. Its Defense & Security segment develops and produces military aircraft and…
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Second attempt at the U.S. market

Embraer previously teamed with L3Harris to promote the KC-390 in the United States, but that partnership dissolved in 2024 after two years of work without a sale. Northrop brings substantially more weight: the company leads the B-21 Raider stealth bomber program and has deep relationships across the Department of Defense. Embraer has signaled readiness to open a dedicated KC-390 manufacturing facility in the U.S. if orders materialize.

The KC-390 is already in service with Brazil and has been selected by Portugal, Hungary, South Korea, the Netherlands, Austria, the Czech Republic, Sweden, Slovakia, Lithuania, and most recently Uzbekistan — the first Central Asian operator. Eleven countries now fly or have ordered the aircraft.

Whether the U.S. Air Force ultimately buys the KC-390 remains uncertain. Senior leaders have shown more interest in a stealthy next-generation platform than a midsize tactical tanker. But with roughly 375 KC-135 Stratotankers averaging over 63 years of age and the KC-46 program plagued by engineering shortfalls, the case for a complementary tactical refueler is getting harder to dismiss. This is part of The Rio Times’ daily coverage of global affairs and Latin American financial news.

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