Embraer raises forecast after record quarter

Embraer continues to grow, reporting revenue of $2.2 billion for the second quarter of the year. This represents an increase of 23 per cent compared with the same period last year.

Adjusted operating profit, EBIT, rose to $296.9 million, corresponding to a margin of 13.3 per cent. Adjusted net income amounted to $218.6 million.

In light of the strong performance, Embraer is raising its forecast for the adjusted EBIT margin in 2026 to 10.0–10.6 per cent, from the previous 8.7–9.3 per cent.

The forecast for adjusted free cash flow, excluding Eve, has also been raised. Embraer now expects at least $400 million, compared with a previous forecast of at least $200 million.

However, forecasts for aircraft deliveries and revenue remain unchanged.

Record order backlog

Embraer delivered 65 aircraft during the quarter, the highest delivery level for a second quarter in 16 years. At the same time, the order backlog grew to a record $34.5 billion.

The defence and security business performed particularly strongly. Revenue increased by 38 per cent, primarily driven by demand for the KC-390 Millennium transport aircraft.

The commercial aviation business is also benefiting from favourable conditions. Embraer's order backlog has been strengthened by several major orders from airlines seeking to expand their regional networks and renew their fleets.

SAS ordered more than 50 Embraer aircraft

One of the larger deals in the Nordic market came last summer when SAS ordered more than 50 new Embraer aircraft.

The order comprises 45 firm orders for the Embraer E195-E2, with options for a further 35 aircraft. The deal was worth around $4 billion at list prices and was an important part of SAS’s plan to strengthen its regional operations.

For Embraer, the growing order book means the manufacturer enters the second half of the year from a strong position, while also raising its profitability forecast for 2026.