# Embraer raises 2026 outlook after record $2.3 billion Q3

*Brazilian aircraft maker posts 17% revenue growth and stronger cash flow, while higher financial and tax expenses weigh on earnings*

- Published: 2026-11-10
- Section: Insights
- Tags: Embraer financial results, Embraer revenue 2026, Embraer stock
- URL: https://brazilstockguide.com/insights/embraer-raises-2026-outlook-after-record-2-3-billion-q3/

![BNDES Embraer SkyWest Airlines](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/08/Captura-de-tela-2025-08-16-195616.png?fit=1024%2C680&ssl=1)

*BNDES Approves R$ 1.7 Billion for Embraer to Export 13 Jets 
(Image/Embraer)*

**By Brazil Stock Guide –** Brazilian aircraft manufacturer Embraer (NYSE: EMBJ; B3: EMBJ3) raised its full-year revenue and free cash flow forecasts after reporting record third-quarter sales of $2.3 billion, up 17% from a year earlier. The company benefited from growth across all four business divisions and stronger operating margins, although higher financial and tax expenses weighed on net earnings.

According to financial results released by Embraer on Tuesday, November 10, the company now expects 2026 revenue of $8.4 billion to $8.6 billion, compared with its previous projection of $8.2 billion to $8.5 billion. Its adjusted free cash flow forecast, excluding subsidiary Eve Air Mobility (NYSE: EVEX; B3: EVEB31), was raised to at least $700 million from a previous minimum of $400 million.

The revised guidance reflects improved business prospects, particularly in Embraer’s Services & Support and Defense & Security operations, as the Brazilian aerospace group continues expanding its international activities.

#### Operating profitability improves despite lower net income

Embraer reported adjusted earnings before interest and taxes (EBIT) of $254.8 million in the third quarter, equivalent to approximately R$1.3 billion.

Its adjusted EBIT margin increased to 10.9%, compared with 8.6% in the corresponding quarter of 2025, reflecting stronger operating performance.

Adjusted free cash flow excluding Eve reached $627.7 million, or approximately R$3.2 billion, supported by operating improvements and cash inflows associated with aircraft sales.

Profitability at the bottom line, however, declined from a year earlier.

Adjusted net income totaled $73.6 million, compared with $84.3 million in the third quarter of 2025. The company attributed the decrease primarily to higher net financial expenses and tax costs.

Net income attributable to Embraer shareholders fell to $71.1 million, equivalent to R$366.7 million, from $116.6 million, or R$622.6 million, a year earlier.

The figures highlight a divergence between the company’s improving operating performance and the financial expenses affecting its net results.

#### Services and defense lead revenue expansion

Embraer’s Services & Support division recorded the strongest percentage growth among its business segments, with revenue increasing 30% year over year to $638 million.

The expansion was driven by higher activity volumes across the company’s aviation businesses, reinforcing the importance of aftermarket services within its revenue mix.

Defense & Security generated $341 million in quarterly revenue, an increase of 22% from a year earlier.

The defense business benefited from greater revenue recognition associated with the KC-390 Millennium military transport aircraft, reflecting increased volumes, customer mix and aircraft production stages.

Commercial Aviation revenue rose 13% to $696 million, supported by higher aircraft volumes and improved pricing.

Executive Aviation generated $655 million, up 12% year over year, as stronger pricing and a favorable product mix contributed to growth.

The increases across all four divisions helped Embraer achieve its highest third-quarter revenue in company history.

#### Aircraft deliveries rise 6% as order backlog reaches record

Embraer delivered 66 aircraft between July and September 2026, compared with 62 in the same period last year, representing a 6% increase.

Commercial aircraft accounted for 22 deliveries, evenly divided between 11 E2 jets and 11 E1 jets.

The Executive Aviation division delivered 41 aircraft, including 22 light jets and 19 midsize jets.

Defense deliveries totaled three aircraft: one KC-390 Millennium military transport plane and two A-29 Super Tucano aircraft.

The company’s firm order backlog reached a record $35.7 billion at the end of September, increasing 14% from the third quarter of 2025.

The backlog also expanded 3% from the previous quarter, surpassing the company’s earlier record and providing additional visibility into future aircraft production and revenue.

#### Investment spending increases across aerospace operations

Embraer also stepped up investment during the quarter as it continued allocating resources across its operations.

On a standalone basis, the company invested $149.7 million between July and September, compared with $98.6 million in the same period of 2025.

Including Eve Air Mobility, consolidated investment reached $219 million, up from $153.4 million a year earlier.

The increase came alongside stronger revenue generation and improved adjusted free cash flow, with Embraer’s aircraft manufacturing, defense and services businesses contributing to the company’s operational expansion.

The combination of higher sales, a record order backlog and increased cash generation underpins Embraer’s revised financial targets for 2026, while the decline in net income underscores the continued impact of financial and tax expenses on overall profitability.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/embraer-raises-2026-outlook-after-record-2-3-billion-q3/