Embraer's Q1 Earnings Miss Estimates, Revenues Increase Y/y

Embraer S.A. EMBJ reported first-quarter 2026 adjusted earnings of 19 cents per American Depository Share (ADS), which missed the Zacks Consensus Estimate of 29 cents by 34.5%. The bottom line also declined 52.5% from 40 cents per share reported in the prior-year quarter.

The company registered quarterly GAAP earnings of five cents per ADS compared with 10 cents in the first quarter of 2025.

Embraer’s Total Revenues

Revenues totaled $1.45 billion, up 31.2% year over year, driven by higher revenues from the company’s Executive Aviation, Defense and Security, Commercial Aviation and Services & Support segments. The figure also surpassed the Zacks Consensus Estimate of $1.33 billion by 8.7%.

EMBJ’s Order & Delivery

Embraer delivered 44 jets in the quarter. It delivered 10 commercial and 29 executive (16 small and 13 medium) jets compared with seven commercial and 23 executive (14 small and 9 medium) jets in the prior-year quarter. The company delivered five military jets in the first quarter of 2026.

The backlog at the end of the first quarter was $32.1 billion, much higher than the prior-year quarter’s figure of $26.4 billion.

EMBJ’s Segmental Details

Executive Aviation: This segment recorded revenues worth $418 million, up 30% year over year.

Defense & Security: This unit generated revenues of $227 million, which improved 63% year over year.

Commercial Aviation: This segment recorded revenues worth $293 million, up 45% year over year.

Services & Support: This segment recorded revenues worth $490 million, up 15% year over year.

Others: This segment includes EMBJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment were $18.3 million, up 21% year over year.

Operational Highlights for EMBJ

Embraer’s operating income amounted to $81.7 million compared with $51.2 million in the first quarter of 2025.

The company posted an adjusted EBITDA of $143.6 million, which increased 32.2% from the year-earlier quarter’s figure.

Financial Update for EMBJ

As of March 31, 2026, EMBJ’s cash and cash equivalents amounted to $1.32 billion compared with $1.95 billion as of Dec. 31, 2025.

Its adjusted free cash outflow (without Eve) for the first quarter of 2026 totaled $447.1 million compared with $385.8 million in the prior-year period.

The net cash outflow from operating activities during the first three months of 2026 amounted to $309.1 million compared with $102.8 million during the first three months of 2025.

Embraer’s 2025 Guidance

Embraer expects to deliver 80-85 commercial jets and 160-170 Executive Aviation jets.

EMBJ anticipates generating revenues in the range of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.44 billion, which lies above the midpoint of the company’s guided range.

Embraer expects the adjusted EBIT margin to be between 8.7% and 9.3%.

Adjusted free cash flow is projected to be $200 million or more.

EMBJ’s Zacks Rank

Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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