Embraer SA Q1 FY2026 earnings call

• Achieved strongest first quarter revenue in history, highest aircraft deliveries in a decade, all-time record backlog. - Commercial Aviation had order of 18 E195E2 jets from Finnair. - Executive Aviation had best first quarter of the decade driven by new Praetor 500E and 600E. - Defense and security had double-digit revenue growth, momentum for K-59 and A-29 platforms with new partnership. - Service and support expanded recurring revenues. - EV's prototype had completed over 54 flights with 2 hours 17 minutes flight time year-to-date.

Commercial Aviation: Revenues up 45% to $293 million, adjusted EBIT negative $28 million with -9.7% margin. Executive Aviation: Revenues increased nearly 30% to $418 million, adjusted EBIT $25 million with 6% margin. Defense Security and Services Support: Defense securities revenues increased 62% to $227 million, adjusted EBIT $38 million with 17% margin. Service support revenues reached $490 million, adjusted EBIT $70 million with 14.3% margin. Consolidated net revenues increased 31% to $1.4 billion, services accounted for 34% of revenues, commercial and executive aviation around 20% each, defense 16%.

• Commercial aviation guidance: 10 commercial jets delivered equal 12% of guidance midpoint, one point above five-year average. - Executive aviation guidance: 29 jets delivered equal 18% of guidance midpoint and seven points above five-year average. - Company backlog reached 32 billion, up 22% year-on-year, new historical record. - Approximately 20 billion in options could expand backlog beyond 50 billion as exercised.

• Q: Christine Gliwak asked about Iran and oil prices affecting customers' fleet decisions and E2 vs A220.

A: Closely monitoring war, no direct impact on Embraer, E2 well positioned. - Q: Marcelo Mota asked about defense $25 million.

A: Amendment to contract with retroactive booking explained the $25 million. - Q: Luis Perfero asked about defense adjustment timing and share repurchase.

A: Timing ahead of expectation, conservative approach on share repurchase. - Q: Ron Epstein asked about investments and supply chain.

A: Investing in production facilities and working on supply chain improvements. - Q: Andrea Ferreira asked about commercial logistics costs and defense tariffs.

A: Logistics costs impact $7 million, defense tariffs impact $13 million with further $11 million in inventory. - Q: Luca Macchioli asked about defense Emirates order and margin.

A: Emirates order opens opportunity, confident in 9% margin midpoint. - Q: Noah Poponek asked about segment margins and defense growth.

A: Segments expected to have stable or improving margins, defense growth planned. - Q: Daniel Gasparetti asked about executive aviation margins and Republic order.

A: Executive aviation margins affected by tariffs and customer mix, Republic order delivery schedule revised. - Q: Alberto Valerio asked about tariffs and book to bill.

A: Tariffs had $13 million impact, no book to bill disclosure. - Q: Andre Mazzini asked about Rolls-Royce partnership and Boeing 777-7 competition.

A: Talking to suppliers, E2 competitive in 156-seat segment. - Q: Lucas Nagy asked about defense capacity and India/US partnerships.

A: Investing in KC-390 production, working on India and US partnerships. - Press Q&A: Richard Sherman asked about production leveling and AirAsia E2 offer.

A: Production leveling pushed to 2027, AirAsia chose competition. Jonathan Humerdinger asked about future commercial jets.

A: Working on studies but no disclosure yet. Steve Trimble asked about UAE C-390 infrastructure and delivery.

A: No completion center plan, delivery starts 2028. Edgardo Jimenez asked about E-190 fighter impact.

A: E-190 freighter helps showcase product. Kurt Epstein asked about executive jet deliveries.

A: 29 executive jet deliveries first quarter record. Joanna Bailey asked about UAE C-390 order and production.

A: UAE order helps in Middle East, working on other customers, ramping up production. Molly McMillan asked about business jet demand and tariffs.

A: No impact on business jet demand, strong demand for modern portfolio. Lucas Lackey asked about defense capacity and India/US partnerships.

A: Investing in KC-390 production, working on India and US partnerships.