Embraer

Embraer

Embraer is a Brazilian aircraft manufacturer headquartered in São José dos Campos, listed in São Paulo and with American depositary shares on the New York Stock Exchange as ERJ. It competes in a segment Airbus and Boeing largely leave alone: regional jets of roughly 70 to 150 seats. It runs four businesses — Commercial Aviation, Executive Aviation, Defense and Security, and Services and Support.

Founded in 1969 as a state-owned company and privatised in 1994, Embraer retains a Brazilian government golden share that gives the state a veto over certain decisions, including changes of control. That structure is part of why a proposed tie-up with Boeing, abandoned in 2020, was politically fraught.

Key Products

The E-Jet E2 family — the E175-E2, E190-E2 and E195-E2 — is the commercial mainstay. In Executive Aviation the Phenom and Praetor lines cover light and midsize business jets. Defense and Security centres on the C-390 Millennium military transport, the A-29 Super Tucano light attack aircraft, and the KC-390 tanker variant.

Business and Financial Position

For the second quarter of 2026, Embraer reported record second-quarter revenue of US$2.2 billion. Commercial Aviation contributed US$625 million, up 8 percent year on year; Executive Aviation US$725 million, up 32 percent; and Services and Support US$565 million, up 24 percent. Adjusted net income was US$218.6 million, against US$158 million in the year-ago quarter, and adjusted EBIT was US$296.9 million at a 13.3 percent margin.

The company delivered 65 aircraft in the quarter — 20 commercial jets, being 10 E2s and 10 E1s, and 45 executive jets. It described this as its strongest second quarter in 16 years, up 7 percent year on year.

Firm order backlog reached US$34.5 billion, an all-time high and the seventh consecutive record, up 7 percent on the first quarter and more than 16 percent year on year. By segment: Commercial Aviation US$15.1 billion, Executive Aviation US$7.8 billion, Defense and Security US$6.1 billion, and Services and Support US$5.5 billion. Embraer credited the commercial increase to an Azorra order for 15 E195-E2 aircraft, which took the E2 programme past 500 firm orders, and the 42 percent defense increase to an agreement with the United Arab Emirates covering 10 firm C-390 orders and 10 options.

Why It Matters

Embraer’s defense growth is the part of this business most relevant to readers of this site. The C-390 has been winning European and Middle Eastern orders against heavier American competition, and a 42 percent year-on-year backlog increase in that segment is a meaningful shift for a company long defined by regional jets.

The company also has an advanced-air-mobility position through Eve Air Mobility, the eVTOL developer it spun out and listed separately in 2022 and in which it remains the majority shareholder. That structure is more conservative than most eVTOL entrants have: Embraer gets exposure to the market without carrying the full development cost on its own balance sheet.