Embraer sharply lifts 2026 profit and cash flow targets
EMBJ sits 36% above its 52-week low of $53.56.
Summary
Embraer raised its 2026 adjusted EBIT margin guidance to 10.0%-10.6% and free cash flow guidance to at least $400 million, reflecting stronger profitability and cash generation amid a record backlog.
Key Events · Earnings and Guidance · EMBJ
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EBIT Margin Guidance Raised
The 2026 adjusted EBIT margin target was increased to 10.0%-10.6% from 8.7%-9.3%, a 130-basis-point improvement at the midpoint.
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Free Cash Flow Guidance Doubled
Free cash flow guidance was raised to $400 million or higher from $200 million or higher, implying at least a $200 million increase in expected cash generation.
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Revenue and Delivery Targets Unchanged
Commercial and executive aviation delivery forecasts and consolidated revenue guidance of $8.2-$8.5 billion were maintained, indicating the upgrade is driven entirely by margin expansion and cash conversion.
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Follows Record Backlog and Strong Deliveries
The guidance raise comes after Embraer reported a record $34.5 billion backlog in Q2 2026 and its strongest second-quarter deliveries in 16 years, providing a solid foundation for the improved outlook.
Analysis · EMBJ · Manufacturing
Embraer lifted its 2026 adjusted EBIT margin target by 130 basis points to 10.0%-10.6% and doubled its free cash flow floor to $400 million, signaling stronger operational leverage and cash generation than previously expected. The upgrade comes on the heels of a record $34.5 billion backlog and the strongest Q2 deliveries in 16 years, reinforcing that the commercial and defense upcycle is translating directly into better financial returns. Revenue and delivery forecasts were left unchanged, so the entire improvement flows from margin expansion and working capital efficiency — a high-quality raise that suggests management sees sustainable profit momentum.
At the time of this filing, EMBJ was trading at $73.06 on NYSE in the Manufacturing sector, with a market capitalization of approximately $13.1B. The 52-week trading range was $53.56 to $80.75. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.