Earnings

Embraer Raises Cash-Flow Forecast To At Least $700 Million Despite Lower Adjusted Earnings

Third-quarter revenue rose 17%, while customer advance payments helped cash generation and the order book reached $35.7 billion.

Embraer, which builds commercial, business and military aircraft, raised its 2026 adjusted free cash flow forecast excluding Eve to at least $700 million from at least $400 million in its earnings statement Tuesday. The aircraft maker also lifted its revenue outlook, even as higher financial and tax expenses cut adjusted net income.

More Sales, Less Adjusted Income

Third-quarter revenue rose 17% from a year earlier to $2.3 billion, which Embraer described as a record for the third quarter. Before the results, Zacks Equity Research's revenue consensus stood at $2.30 billion.

Adjusted EBIT — earnings before interest and taxes — increased to $254.8 million from $172.0 million. Its margin reached 10.9%, versus 8.6% a year earlier, when U.S. import tariffs affected results; excluding those tariffs, the earlier margin was 9.4%.

Adjusted net income fell to $73.6 million from $84.3 million. Embraer attributed the decline mainly to higher net financial expenses, including changes in the market value of long-term incentive shares, and tax expenses. Profit attributable to Embraer shareholders fell to $71.1 million from $116.6 million.

Management now expects annual revenue of $8.4–$8.6 billion, versus $8.2–$8.5 billion previously. It kept its adjusted EBIT margin forecast at 10.0%–10.6% and its delivery targets at 80–85 commercial aircraft and 160–170 executive jets.

Customer Advances Strengthen Cash

Quarterly adjusted free cash flow excluding Eve reached $627.7 million, compared with $300.3 million a year earlier. Embraer said stronger operating performance and customer payments ahead of deliveries were the main contributors.

Excluding Eve, Embraer ended the quarter with $430.0 million more cash and financial investments than debt, compared with net debt of $214.5 million in the prior quarter. Its consolidated adjusted free cash flow was $572.7 million, including Eve's $55.0 million cash outflow.

Orders awaiting fulfillment reached $35.7 billion, up 14% year over year and 3% from the prior quarter, a company-described all-time high. Deliveries rose 6% to 66 aircraft: 22 commercial jets, 41 executive jets and three defense aircraft. The defense deliveries included one KC-390 Millennium and two A-29 Super Tucanos.

Maintenance Leads Revenue Growth

Services & Support revenue grew 30% to $638 million, the fastest growth among Embraer's main businesses. Defense & Security revenue rose 22% to $341 million, Commercial Aviation increased 13% to $696 million, and Executive Aviation grew 12% to $655 million.

The business combines aircraft sales with maintenance, training and parts. Commercial Aviation represented 31.3% of 2025 revenue, Executive Aviation 29.1%, Services & Support 25.4% and Defense & Security 13.0%. Annual revenue was $7.6 billion, with North American clients accounting for 58.7%.

Embraer's expansion spending includes $195 million during 2024–2028 to increase executive-aircraft production capacity in Brazil and the United States. It also plans $70 million during 2025–2027 for Fort Worth maintenance operations, targeting an increase of more than 50% in the footprint serving North American commercial-aircraft customers in 2027.

Embraer's company-wide market value was $13.7 billion at Monday's close.

On Monday, Embraer will change each American depositary share from representing four common shares to one. The company said the change will not affect its underlying equity value.