Embraer raised its 2026 adjusted EBIT margin guidance and doubled its minimum free cash flow outlook, with approximately $106 million of the $110 million increase in the midpoint of implied adjusted EBIT guidance tied to an extraordinary tax credit and a U.S. tariff exemption.
The aerospace company now expects an adjusted EBIT margin of 10.0% to 10.6%, compared with its previous range of 8.7% to 9.3%. Adjusted free cash flow excluding Eve is expected to reach at least $400 million, double the previous guidance of at least $200 million. Revenue guidance remains unchanged at $8.2 billion to $8.5 billion.
Embraer said approximately $68 million, or 80 basis points, of the improvement in the midpoint of adjusted EBIT guidance comes from an extraordinary tax credit. Another $38 million, or 45 basis points, comes from an exemption from direct U.S. import tariffs during the second half of 2026. Only approximately $4 million, or five basis points, reflects an improved business outlook.
The company noted that it remains exposed to approximately $12 million annually in indirect U.S. import tariffs.
The guidance increase accompanies strong operating momentum. Second-quarter revenue reached an all-time high of $2.24 billion, up 23% year over year. Embraer delivered 65 aircraft during the quarter, while its firm order backlog reached a company record of $34.5 billion, up more than 16% from the prior year. Defense & Security backlog increased 42%, Commercial Aviation backlog increased 15%, Services & Support increased 12%, and Executive Aviation rose 5%.
KEY QUOTES:
“Management believes prior guidance no longer represents evenly balanced opportunities and risks for full-year operations.”
Embraer Management
