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Embraer
(NYSE:EMBJ)
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Rating:65Neutral
Price Target:
$78.00
▲(9.26% Upside)
Action:Reiterated
Date:08/10/26
The score is driven mainly by improved financial performance versus prior loss years, but capped by recent margin compression and softer cash conversion. Technicals are supportive (price above major moving averages and positive MACD) yet somewhat overbought, while valuation is a clear headwind due to the high P/E. Earnings call takeaways are constructive with higher profitability/FCF guidance and strong backlog, partially offset by commercial segment margin weakness and one-time benefits.
Positive Factors
Record backlog and demand visibility
A $34.5B backlog (up 16% YoY) provides multiyear revenue visibility, smoothing cyclical exposure and supporting stable production planning. This durable forward book underpins recurring aftermarket and services revenue, strengthens negotiating leverage with suppliers, and reduces short-term sales volatility.
Negative Factors
Recent margin uplift partly one-time
Reliance on a sizable tax credit and tariff refunds to lift quarterly margins indicates part of recent profitability is non-recurring. If these items do not recur, sustained margin improvement will depend on operational productivity and pricing, leaving future margins exposed to downside versus headline results.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and demand visibility
A $34.5B backlog (up 16% YoY) provides multiyear revenue visibility, smoothing cyclical exposure and supporting stable production planning. This durable forward book underpins recurring aftermarket and services revenue, strengthens negotiating leverage with suppliers, and reduces short-term sales volatility.
Read all positive factors
Embraer (EMBJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.86B
Dividend Yield1.06%
Average Volume (3M)973.14K
Price to Earnings (P/E)41.5
Beta (1Y)0.72
Revenue Growth19.91%
EPS Growth20.26%
CountryUS
Employees21,122
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)12.96
Shares Outstanding185,116,260
10 Day Avg. Volume843,576
30 Day Avg. Volume973,137
Financial Highlights & Ratios
PEG Ratio-2.93
Price to Book (P/B)3.42
Price to Sales (P/S)1.56
P/FCF Ratio30.56
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$87.67Price Target Upside22.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.88
Revenue Forecast (FY)$8.48B
Embraer Business Overview & Revenue Model
Company Description
Embraer SA engages in the design, manufacture, and sale of aircraft and its parts for commercial, defense, and executive aviation sectors. It operates through the following segments: Commercial Aviation, Defense and Security, Executive Jet Busines...
How the Company Makes Money
Embraer primarily makes money by selling aircraft and by earning recurring revenue from aftermarket and aviation services.
1) Aircraft sales (original equipment revenue)
- Commercial Aviation: Revenue is generated from the sale and delivery of re...
Embraer Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
Overall the call was positive: Embraer reported record second-quarter revenue, stronger deliveries, a record backlog (+16% YoY), significant cash generation (adjusted FCF $401M) and improved leverage (net debt/EBITDA 0.2x). Strong growth in executive aviation (+32% revenue) and defense (+38% revenue) and notable order wins (E2 >500 orders, UAE C-390 order, new KC-390 customers) underpin confidence. Offsetting factors include low commercial aviation margins (2.9% adjusted EBIT), reliance on a material extraordinary tax credit and tariff refunds that boosted margins, residual tariff exposure (~$12M/year), and supplier delays that constrain near-term production leveling. On balance, highlights materially outweigh the lowlights.Positive Updates
Record Quarter — Highest Q2 Revenue and Deliveries
Consolidated net revenues increased 23% year-over-year to $2.2 billion, delivering the strongest second-quarter revenue in company history. The company delivered 65 aircraft (20 commercial, 45 executive), a nearly 7% increase year-over-year, and achieved the highest second-quarter deliveries in 16 years.
Negative Updates
Commercial Aviation Profitability Weakness
Commercial Aviation revenues increased 8% YoY to $625 million, but adjusted EBIT was only $18 million with a 2.9% margin. Management attributed the year-over-year decline primarily to customer/contract mix and legacy contracts, raising questions on near-term margin recovery in the segment.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter — Highest Q2 Revenue and Deliveries
Consolidated net revenues increased 23% year-over-year to $2.2 billion, delivering the strongest second-quarter revenue in company history. The company delivered 65 aircraft (20 commercial, 45 executive), a nearly 7% increase year-over-year, and achieved the highest second-quarter deliveries in 16 years.
Read all positive updates
Company Guidance
Embraer kept 2026 delivery guidance unchanged at 80–85 commercial aircraft and 160–170 executive jets (H1 deliveries: 30 commercial, 36% of the midpoint, and 74 executive, 45% of the midpoint), left revenue guidance unchanged at $8.2–$8.5 billion (H1 revenues $3.7B, 44% of midpoint), raised adjusted EBIT margin guidance to 10.0%–10.6% (midpoint up ~130 bps, ~+$110M) and increased adjusted free cash flow guidance to $400M or higher (Q2 adjusted FCF excl. Eve was $401M); these updates reflect stronger operating performance, a $68M extraordinary tax credit, lower U.S. tariffs (≈$8M recorded in Q2) and production/efficiency gains supported by Q2 results (adj. EBITDA $356M, 15.9% margin; adj. EBIT $297M, 13.3%), with net debt/adj. EBITDA improving to 0.2x.Embraer Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
63
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.43B | 41.50B | 39.54B | 25.90B | 24.29B | 23.56B |
| Gross Profit | 7.94B | 7.28B | 7.13B | 4.47B | 4.88B | 3.54B |
| EBITDA | 3.61B | 3.97B | 6.27B | 2.94B | 1.22B | 2.69B |
| Net Income | 2.36B | 1.93B | 2.18B | 806.09M | -991.84M | -250.69M |
Balance Sheet | ||||||
| Total Assets | 68.42B | 70.76B | 73.12B | 53.00B | 54.26B | 56.95B |
| Cash, Cash Equivalents and Short-Term Investments | 11.16B | 14.38B | 13.62B | 10.57B | 12.36B | 14.41B |
| Total Debt | 13.37B | 14.85B | 16.10B | 14.66B | 17.52B | 22.94B |
| Total Liabilities | 48.62B | 49.89B | 52.44B | 38.06B | 39.15B | 41.39B |
| Stockholders Equity | 17.77B | 18.87B | 19.02B | 13.70B | 13.74B | 14.96B |
Cash Flow | ||||||
| Free Cash Flow | 4.81B | 2.11B | 2.50B | 915.20M | 2.65B | 1.39B |
| Operating Cash Flow | 6.36B | 4.76B | 5.39B | 3.03B | 4.02B | 2.89B |
| Investing Cash Flow | -1.91B | -3.35B | -3.71B | -2.20B | -585.79M | -790.11M |
| Financing Cash Flow | 512.98M | 800.19M | -2.08B | -1.71B | -3.58B | -2.38B |
Embraer Technical Analysis
71.39
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMBJ, the sentiment is undefined. The current price of 71.39 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for EMBJ.
Embraer Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
Embraer Corporate Events
Embraer Lifts 2026 Profit Outlook as Q2 Revenue and Backlog Hit Record Levels
Aug 10, 2026
In the second quarter of 2026, Embraer reported consolidated revenue of US$2.24 billion, a 23% year-on-year increase, driven by double-digit growth in Executive Aviation, Defense Security, and Services Support. The firm delivered 65 aircraft, ra...
Embraer Posts Record Q2 2026 Results and Raises 2026 Profit, Cash-Flow Guidance
Aug 10, 2026
In the second quarter of 2026, Embraer reported the best Q2 revenue in its history at US$2.2 billion and its highest second-quarter aircraft deliveries in 16 years with 65 aircraft, driving a record backlog of US$34.5 billion and a seventh consecu...
Embraer Raises 2026 Profitability and Cash Flow Guidance While Holding Delivery Targets Steady
Aug 10, 2026
Embraer S.A. announced on August 10, 2026, that it has revised its 2026 guidance, updating previously disclosed projections to better reflect current business opportunities and risks. The company kept its delivery targets for commercial aircraft a...
Embraer Secures KC-390 Millennium Contract with Colombian Air Force
Aug 4, 2026
On August 4, 2026, Embraer announced that the Fuerza Aeroespacial Colombiana signed a contract to acquire two KC-390 Millennium multi-mission aircraft, including mission equipment, integrated services and support, and an offset program to meet Col...
Embraer Files Routine July 2026 Form 6-K with U.S. SEC
Jul 24, 2026
Embraer S.A. filed a Form 6-K report for July 2026 with the U.S. Securities and Exchange Commission, confirming its status as a foreign private issuer and its use of Form 20-F for annual reporting. The filing, dated July 24, 2026, was signed by Ex...
Embraer Secures New Binter Order for Five E195-E2 Jets at Farnborough
Jul 21, 2026
On July 21, 2026, at the Farnborough Airshow in the U.K., Embraer announced that Spanish carrier Binter ordered five additional E195-E2 jets, along with four purchase rights. The deal marks Binter’s fourth E2 order and underscores the aircra...
Embraer Secures New Luxair E190-E2 Order at Farnborough
Jul 21, 2026
On July 21, 2026, at the Farnborough Airshow in the U.K., Embraer announced that Luxair has converted purchase rights for three E190-E2 jets into firm orders and added one extra purchase right. This follow-on deal lifts Luxair’s firm E2 orde...
Embraer Secures Abra Group Order for Up to 45 E195-E2 Jets
Jul 21, 2026
On July 21, 2026, Embraer announced from Farnborough that Abra Group has agreed to purchase 20 E195-E2 jets, with 10 purchase options and 15 purchase rights, for up to 45 aircraft. The largest model in Embraer’s E-Jet E2 family, the E195-E2 ...
Embraer Posts Best Second-Quarter Aircraft Deliveries in 16 Years
Jul 2, 2026
Embraer reported on July 2, 2026 that it delivered 65 aircraft in the second quarter of 2026, its strongest second-quarter performance in 16 years, representing a 48% increase quarter-on-quarter and 7% year-on-year. In the first half of 2026, tota...
Embraer Declares R$200 Million Second-Quarter Interest on Equity for 2026
Jun 19, 2026
On June 18, 2026, Embraer’s board approved interest on equity for the second quarter of the 2026 fiscal year totaling R$200 million, corresponding to R$0.28096472120 per ordinary share, to be credited against mandatory dividends for the year...
Embraer’s E2 Jet Program Tops 500 Orders as Azorra Adds 15 E195-E2s
Jun 5, 2026
On June 5, 2026, Embraer announced that U.S.-based lessor Azorra placed an additional firm order for 15 E195-E2 jets and secured purchase rights for 15 more, lifting its total firm E2 commitments from 39 to 54 aircraft. The deal, the third upsizin...
Embraer to Fully Redeem 7.000% 2030 Notes in June 2026
May 22, 2026
Embraer announced on May 21, 2026, that its indirect subsidiary Embraer Netherlands Finance B.V. has issued a notice to redeem in full all outstanding 7.000% notes due 2030, with the redemption scheduled for June 2, 2026. The redemption price will...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.