Sao Jose dos Campos, Brazil - Embraer has announced its best-ever first quarter results, with defense products leading a significant improvement in profitability and setting new benchmarks for the Brazilian aerospace giant.
The company reported revenues of $1.4 billion for the three months ended March 31, 2026, marking a 31 percent rise over the same period in 2025 and the highest first-quarter top line in its history. Adjusted EBIT came in at $94 million, representing a 6.5 percent margin compared to 5.6 percent a year earlier.
Defense and security operations stood out as the primary growth driver. Revenues in this segment climbed 63 percent to $227 million, while the adjusted EBIT margin swung from negative 1.6 percent to a robust 17 percent. This performance was fueled by increased deliveries and revenue recognition for the KC-390 Millennium multi-mission transport and continued production of the A-29 Super Tucano light attack aircraft.
Just days before the earnings release, Embraer formalized an exclusive partnership with UAE-based Generation 5 Holding to establish MRO and after-sales capabilities for the C-390 in the United Arab Emirates and broader Middle East region. This move aligns with recent major orders, including a commitment from the UAE for up to 20 of the aircraft, the largest order for the type to date.
The company plans to gradually increase KC-390 production from around six units this year to 10 annually by the end of the decade, with efforts underway to expand capacity in Brazil and explore localized assembly in markets like India and the United States.
Commercial aviation revenues grew 45 percent to $293 million, supported by higher jet deliveries and pricing. Executive jets contributed $418 million, up 30 percent, boosted by demand for the newly launched Praetor 500E and 600E models. The services and support business, a stable revenue generator, increased 15 percent to $490 million.
Embraer handed over 44 aircraft during the quarter - a 47 percent increase from 30 a year ago - including 10 commercial E-Jets, 29 business jets, and five defense aircraft. Its firm order backlog expanded to a record $32.1 billion, up 22 percent year-over-year, with the commercial portion alone rising 50 percent to $15 billion. Additional options worth around $20 billion could lift the total above $50 billion if converted.
CEO Francisco Gomes Neto highlighted progress in stabilizing the supply chain, particularly for executive aircraft, and noted improvements with engine suppliers for the commercial division. While acknowledging potential headwinds from geopolitical tensions and tariffs - which affected the quarter by about $30 million - Neto expressed confidence in meeting 2026 targets and pursuing longer-term goals of double-digit revenues and margins.
The company maintained its full-year outlook, projecting 80 to 85 commercial aircraft and 160 to 170 executive jets deliveries, with total revenues between $8.2 billion and $8.5 billion and adjusted EBIT margins of 8.7 to 9.3 percent. Adjusted free cash flow, excluding the Eve urban air mobility program, is expected to be at least $200 million.
On the Eve side, the electric vertical takeoff and landing prototype has accumulated significant test flight time, with the program advancing toward horizontal flight testing in the coming months.
Analysts note that while cash flow was negative in the quarter due to inventory buildup for upcoming deliveries, the overall trajectory points to sustained momentum across Embraer's diversified portfolio.