Revenue and backlog set the tone
Embraer said its firm order backlog reached a record $34.5 billion in the second quarter — the seventh straight quarter at an all-time high. Reuters reported that the backlog rose 16% from a year earlier. Embraer’s own update confirmed the result marks its seventh consecutive record high.
Revenue also strengthened. Second-quarter revenue rose 23% to $2.24 billion. That was the company’s strongest second-quarter revenue on record, according to CEO Francisco Gomes Neto.
Deliveries added to the picture. Embraer delivered 65 aircraft in the quarter, up from 61 a year earlier. The company said that was its highest second-quarter delivery tally in 16 years.
The order book remains broad-based. Commercial aviation accounted for $15.1 billion of backlog, executive aviation $7.8 billion, defence $6.1 billion and services and support $5.5 billion. That mix gives Embraer more revenue visibility into the second half and beyond.
What does the guidance upgrade mean for investors?
Embraer raised its 2026 profit outlook by about $110 million. Chief financial officer Felipe Santana said much of the increase came from a one-off $68 million tax credit, which he described as a refund of previous tariffs. Embraer still expects about $12 million a year in indirect tariff-related costs.
The tariff effect is therefore manageable rather than disruptive. Civil aircraft and aerospace products remain exempt from direct US tariffs on Brazilian goods. That helps explain why the company could raise guidance while still flagging some cost pressure.
Defence demand is emerging as an important driver. Gomes Neto said the United Arab Emirates ordered 10 KC-390 military transport aircraft — the largest international order for the type to date. Colombia also ordered two of the aircraft this month. Meanwhile, Gomes Neto said geopolitical tensions are accelerating sales campaigns.
‘Embraer is turning record demand into clearer earnings power, while tariff costs remain small enough to absorb.’
Embraer also gave an update on Eve Air Mobility, its electric air-taxi subsidiary. The company said Eve completed its first transition flight this month, a key step in development. Investors will now watch whether backlog conversion, delivery growth and defence wins can keep supporting margins through the rest of 2026.
Quick answers
Embraer’s firm order backlog reached a record $34.5 billion in Q2 2026, the seventh consecutive quarter at an all-time high and 16% higher than a year earlier.
Embraer raised its 2026 profit outlook by approximately $110 million, with $68 million of that increase coming from a one-off tax credit described as a refund of previous tariffs.
The impact is limited: civil aircraft and aerospace products are exempt from direct US tariffs on Brazilian goods, and Embraer expects only about $12 million a year in indirect tariff-related costs.
