Embraer S.A. (EMBJ)

Embraer delivered 66 aircraft in the third quarter of 2026, which it called the best third quarter in its history, up 6 percent from a year earlier 3.

Its newest financial results are for the second quarter, when revenue was $2,235 million, up 23 percent and an all-time high for a second quarter 1. The company raised its 2026 guidance for adjusted EBIT margin (operating profit as a share of revenue) to 10.0 to 10.6 percent, up from 8.7 to 9.3 percent 1. It said $68 million of the increase came from an extraordinary tax credit and $38 million from the exemption of direct U.S. import tariffs in the second half 1.

On 2 November Greece signed a contract for three KC-390 Millennium military transport aircraft, with options for three more and the first delivery in 2027 4.

On 30 October Embraer said each American depositary share (ADS), the certificate traded in New York, would represent one common share instead of four 5. Holders of record on 9 November are to receive three more ADSs for each one held, with trading on the new basis expected from 16 November 5.

Embraer was formed in 1969 by the Brazilian government to build aircraft for the Brazilian Air Force, became a publicly held company in 1989 and was privatized in 1994 2. In the sale the government created a golden share, a special share that gives it veto rights, in particular over military programs 2.

Its first regional jet, the ERJ 145, was certified in 1996 2. The EMBRAER 170/190 family followed, with the EMBRAER 170 certified in February 2004 and seats for between 70 and 118 passengers across the family 2.

In 2006 it simplified its share structure to common shares only and joined the Novo Mercado, a listing segment of the Brazilian exchange with stricter governance rules 2. Since then the company says it has had no controlling shareholder or group 2.

In 2011 and 2012 it expanded in defense technology, including the purchase of Atech and Bradar 2. In June 2013 it launched the second generation of the E-Jets, the E2; the E190-E2 entered service in April 2018 and the E195-E2 in September 2019 2.

Airline traffic worldwide was disrupted by the pandemic and only returned to 2019 levels in 2024, as reported by IATA, the airline trade body 2. In May 2022 its electric aircraft unit Eve listed in New York through a merger with Zanite Acquisition Corp. 2.

Revenue grew from $5,268.5 million in 2023 to $6,394.7 million in 2024 and $7,577.5 million in 2025 2. Profit for the year was $164.3 million, $354.6 million and $359.0 million in those years 2.

Revenue rose 18.5 percent in 2025, mainly on more commercial and executive jet deliveries and higher revenue from services and defense 2. Operating income slipped 9.0 percent to $607.6 million 2. Other income fell $164.9 million, mainly because 2024 held proceeds from the Boeing arbitration agreement 2.

Commercial jets

Commercial Aviation sells the E-Jet family, passenger jets with up to 150 seats, and made 31.3 percent of 2025 revenue 2. Segment revenue rose 7.3 percent to $2,369.8 million on 78 deliveries, against 73 a year earlier 2. The order backlog at the end of 2025 was 459 aircraft 2.

In the second quarter segment revenue was $625 million, up 8 percent, while gross margin (revenue left after production costs) fell to 8.4 percent from 10.1 percent 1. The company ties the lower margins to customer mix, meaning older contracts 1.

Abra Group, parent of Avianca and Gol, agreed in July to buy 20 E195-E2 aircraft, with 10 options and 15 purchase rights, and a first delivery expected in the fourth quarter of 2027 8. Rivals the annual report names include the Airbus A220 and the C909 of COMAC in China 2.

Executive jets

Executive Aviation makes business jets: the Phenom 100 and 300 in the light classes and the Praetor 500 and 600 in the midsize classes 2. It delivered 155 jets in 2025, up 19 percent, for about 33 percent of the market across all jet classes by the company's own count 2. Segment revenue rose 25.1 percent to $2,205.1 million 2.

In the second quarter its revenue was $725 million, up 32 percent, and a $60 million extraordinary tax credit lifted the segment's margin 1. The annual report names Textron, Honda, Pilatus, Gulfstream and Bombardier as rivals 2.

Defense and security

Defense & Security builds the KC-390 Millennium, a military transport and air-refueling jet, and the A-29 Super Tucano, a turboprop for light attack and training, and made 13.0 percent of 2025 revenue 2. Segment revenue rose 36.5 percent to $983.9 million 2. Sales to the Brazilian government were 11.2 percent of it, down from 23.0 percent in 2024 2.

Colombia signed in August for two KC-390 aircraft 10. Greece is the seventh European nation to select the aircraft, joining Portugal, Hungary, the Netherlands, Austria, the Czech Republic and Sweden 4. Its main rival is the Lockheed Martin C-130J 2.

At Gavião Peixoto, Brazil, the company says its plant will build 15 Gripen E fighters for Saab, with deliveries from 2026 2.

Services and support

Services & Support sells parts, maintenance, training and fleet services, supports more than 4,391 Embraer aircraft and made 25.4 percent of 2025 revenue 2. Revenue rose 17.7 percent to $1,925.6 million, helped by parts demand and an engine maintenance contract held by its Portuguese subsidiary OGMA 2.

Plants and people

Commercial jets are built in São José dos Campos, Brazil, and executive jets in Melbourne, Florida, and Gavião Peixoto, Brazil 2. The company had 25,037 consolidated employees at the end of 2025, with 86.9 percent of its workforce in Brazil 2. Francisco Gomes Neto is chief executive and Raul Calfat chairs the board, as the minutes of the 30 October shareholders' meeting record 9.

Pressures

U.S. tariffs on Brazilian goods are a named risk in the annual report, which says the company cannot assure that current exemptions will remain in place 2. In the second quarter tariffs cost $8 million, and the company still faces about $12 million a year of indirect U.S. import tariffs 1.

The umbrella, in words

The filed list of subsidiaries at the end of 2025 includes Embraer Aircraft Holding in the United States, Embraer Defesa e Segurança Participações, Atech, Visiona, Tempest and OGMA in Portugal 7. It owns 72.7 percent of Eve Holding, the New York-listed developer of electric vertical-takeoff aircraft, down from 83.7 percent a year earlier 2.

It owns 65 percent of OGMA, 51 percent of the satellite company Visiona, and all of the cybersecurity company Tempest, the last 39 percent of which it bought in 2024 2. It agreed in 2023 with Nidec to form Nidec Aerospace, a joint company for electric propulsion systems 2.

No shareholder controls Embraer, which says it has had no controlling shareholder or group since joining the Novo Mercado 2. The Brazilian government holds a golden share with veto rights, in particular over military programs 2.

BlackRock, Inc. reported 50,955,237 common shares, or 6.9 percent, in a Schedule 13G/A 11. Brandes Investment Partners reported 5.3 percent of the ADRs and common shares in a Schedule 13G filed in August 12.

The company's 2026 guidance calls for 80 to 85 commercial and 160 to 170 executive jet deliveries 1. It also guides to revenue of $8.2 billion to $8.5 billion and adjusted free cash flow, excluding Eve, of $400 million or higher 1.

The company lists $90 million of capital spending in 2024 to 2027 to raise executive jet capacity 1. It lists $105 million in 2021 to 2026 for an OGMA engine line, with full ramp-up at $650 million of revenue in 2030 1. It lists $70 million in 2025 to 2027 to expand maintenance in Fort Worth, Texas, by 50 percent or more in 2027 1.

Eve's first electric aircraft factory in Taubaté, Brazil, is scheduled to begin operations in 2027, according to the annual report 2. Greece is to receive its first KC-390 in 2027 4. The company expects at least six more KC-390 operators beyond today's three as it delivers its backlog 2.

Shareholders are called to an extraordinary meeting on 30 November 2026 to vote on a stock-based long-term incentive plan 6. Today the company pays executives with phantom shares settled only in cash 6.