Embraer shares surge on record second-quarter revenue, raised guidance

Scotiabank analysts said Embraer's operating performance was strong and broad-based, with sales increasingly weighted toward the company's higher-margin business segments.

Embraer said its Defense & Security arm remained a standout performer, with revenue rising 22% from a year earlier, driven by stronger revenue for KC-390 Millennium aircraft.

The company delivered 65 aircraft in the second quarter, comprising 45 executive jets and 20 commercial jets, a 7% increase from a year earlier.

The firm's shares outperformed Brazil's benchmark Bovespa index, climbing some 7%, while the broader market declined 0.7%. Year to date, the stock is up 11.1%.

Embraer raised its 2026 free cash flow forecast to $400 million or more, from previous guidance of $200 million or more. It now expects an adjusted EBIT margin of between 10.0% and 10.6% this year, up from a previous forecast of 8.7% to 9.3%.

Aircraft deliveries and consolidated revenue remained unchanged.

($1 = 5.0854 reais)

Brazilian planemaker Embraer reported record second-quarter revenue of 11.34 billion reais ($2.23 billion) on Monday, up 10% from a year earlier, alongside a broadly strong performance that triggered a 7% rise in its shares.

The world's third-largest aircraft manufacturer's net profit rose 25% year-on-year to 1.11 billion reais, and EBITDA increased 30% to 1.81 billion reais.