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Embraer's Q1 Earnings Miss Estimates, Revenues Increase Y/Y
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Key Takeaways
Embraer posted Q1 revenues of $1.45B, up 31%, while adjusted earnings missed estimates.
EMBJ delivered 44 jets in Q1, with backlog rising to $32.1B from $26.4B a year ago.
EMBJ expects 2026 revenues of $8.2B-$8.5B and commercial jet deliveries of 80-85.
Embraer S.A. (EMBJ - Free Report) reported first-quarter 2026 adjusted earnings of 19 cents per American Depository Share (ADS), which missed the Zacks Consensus Estimate of 29 cents by 34.5%. The bottom line also declined 52.5% from 40 cents per share reported in the prior-year quarter.
The company registered quarterly GAAP earnings of five cents per ADS compared with 10 cents in the first quarter of 2025.
Embraer’s Total Revenues
Revenues totaled $1.45 billion, up 31.2% year over year, driven by higher revenues from the company’s Executive Aviation, Defense and Security, Commercial Aviation and Services & Support segments. The figure also surpassed the Zacks Consensus Estimate of $1.33 billion by 8.7%.
EMBJ’s Order & Delivery
Embraer delivered 44 jets in the quarter. It delivered 10 commercial and 29 executive (16 small and 13 medium) jets compared with seven commercial and 23 executive (14 small and 9 medium) jets in the prior-year quarter. The company delivered five military jets in the first quarter of 2026.
The backlog at the end of the first quarter was $32.1 billion, much higher than the prior-year quarter’s figure of $26.4 billion.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Executive Aviation: This segment recorded revenues worth $418 million, up 30% year over year.
Defense & Security: This unit generated revenues of $227 million, which improved 63% year over year.
Commercial Aviation: This segment recorded revenues worth $293 million, up 45% year over year.
Services & Support: This segment recorded revenues worth $490 million, up 15% year over year.
Others: This segment includes EMBJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment were $18.3 million, up 21% year over year.
Operational Highlights for EMBJ
Embraer’s operating income amounted to $81.7 million compared with $51.2 million in the first quarter of 2025.
The company posted an adjusted EBITDA of $143.6 million, which increased 32.2% from the year-earlier quarter’s figure.
Financial Update for EMBJ
As of March 31, 2026, EMBJ’s cash and cash equivalents amounted to $1.32 billion compared with $1.95 billion as of Dec. 31, 2025.
Its adjusted free cash outflow (without Eve) for the first quarter of 2026 totaled $447.1 million compared with $385.8 million in the prior-year period.
The net cash outflow from operating activities during the first three months of 2026 amounted to $309.1 million compared with $102.8 million during the first three months of 2025.
Embraer’s 2025 Guidance
Embraer expects to deliver 80-85 commercial jets and 160-170 Executive Aviation jets.
EMBJ anticipates generating revenues in the range of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.44 billion, which lies above the midpoint of the company’s guided range.
Embraer expects the adjusted EBIT margin to be between 8.7% and 9.3%.
Adjusted free cash flow is projected to be $200 million or more.
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
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Embraer's Q1 Earnings Miss Estimates, Revenues Increase Y/Y
Key Takeaways
Embraer S.A. (EMBJ - Free Report) reported first-quarter 2026 adjusted earnings of 19 cents per American Depository Share (ADS), which missed the Zacks Consensus Estimate of 29 cents by 34.5%. The bottom line also declined 52.5% from 40 cents per share reported in the prior-year quarter.
The company registered quarterly GAAP earnings of five cents per ADS compared with 10 cents in the first quarter of 2025.
Embraer’s Total Revenues
Revenues totaled $1.45 billion, up 31.2% year over year, driven by higher revenues from the company’s Executive Aviation, Defense and Security, Commercial Aviation and Services & Support segments. The figure also surpassed the Zacks Consensus Estimate of $1.33 billion by 8.7%.
EMBJ’s Order & Delivery
Embraer delivered 44 jets in the quarter. It delivered 10 commercial and 29 executive (16 small and 13 medium) jets compared with seven commercial and 23 executive (14 small and 9 medium) jets in the prior-year quarter. The company delivered five military jets in the first quarter of 2026.
The backlog at the end of the first quarter was $32.1 billion, much higher than the prior-year quarter’s figure of $26.4 billion.
Embraer-Empresa Brasileira de Aeronautica Price, Consensus and EPS Surprise
Embraer-Empresa Brasileira de Aeronautica price-consensus-eps-surprise-chart | Embraer-Empresa Brasileira de Aeronautica Quote
EMBJ’s Segmental Details
Executive Aviation: This segment recorded revenues worth $418 million, up 30% year over year.
Defense & Security: This unit generated revenues of $227 million, which improved 63% year over year.
Commercial Aviation: This segment recorded revenues worth $293 million, up 45% year over year.
Services & Support: This segment recorded revenues worth $490 million, up 15% year over year.
Others: This segment includes EMBJ’s Agricultural Aviation, cyber division Tempest and other businesses. Revenues for this segment were $18.3 million, up 21% year over year.
Operational Highlights for EMBJ
Embraer’s operating income amounted to $81.7 million compared with $51.2 million in the first quarter of 2025.
The company posted an adjusted EBITDA of $143.6 million, which increased 32.2% from the year-earlier quarter’s figure.
Financial Update for EMBJ
As of March 31, 2026, EMBJ’s cash and cash equivalents amounted to $1.32 billion compared with $1.95 billion as of Dec. 31, 2025.
Its adjusted free cash outflow (without Eve) for the first quarter of 2026 totaled $447.1 million compared with $385.8 million in the prior-year period.
The net cash outflow from operating activities during the first three months of 2026 amounted to $309.1 million compared with $102.8 million during the first three months of 2025.
Embraer’s 2025 Guidance
Embraer expects to deliver 80-85 commercial jets and 160-170 Executive Aviation jets.
EMBJ anticipates generating revenues in the range of $8.2-$8.5 billion. The Zacks Consensus Estimate for revenues is pegged at $8.44 billion, which lies above the midpoint of the company’s guided range.
Embraer expects the adjusted EBIT margin to be between 8.7% and 9.3%.
Adjusted free cash flow is projected to be $200 million or more.
EMBJ’s Zacks Rank
Embraer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.