EMBJ

Overall Corporate Performance

• This was Embraer's strongest Q2 in history by revenue, with the highest Q2 aircraft deliveries in 16 years and a new all-time high backlog for the seventh consecutive quarter.
• Total company-wide backlog reached $34.5 billion, up 16% YoY, with approximately $21 billion in additional options that could grow total backlog to over $55 billion if exercised.
  • Commercial Aviation backlog grew 15% YoY, with a 1.8 12-month book-to-bill ratio
  • Defense and Security backlog grew 42% YoY, with a 2.6 12-month book-to-bill ratio
  • Executive Aviation backlog grew 5% YoY, with a book-to-bill ratio above 1
  • Service and Support backlog grew 12% YoY, with a book-to-bill ratio above 1
• Total Q2 deliveries were 65 aircraft, up nearly 7% YoY: 20 commercial jets (up 5% YoY) and 45 executive jets (up 18% YoY).

Segment Operational Milestones

• Commercial Aviation: Secured a 15-aircraft E195-E2 order from Azorra (with 15 remaining purchase rights), and the E2 program surpassed 500 firm orders. 28 additional E2 orders were announced shortly after quarter-end.
• Executive Aviation: Achieved record Q2 revenue and deliveries on strong market demand, and earned triple certification for the Praetor 500E and Praetor 600E. A new EV edition of the Phenom 300 was launched after quarter-end.
• Defense and Security: Secured an order for 10 C-390 aircraft from the UAE (with 10 additional options), the platform's first Middle East order and the largest international C-390 order to date. Colombia became the 13th global customer for the KC-390 after quarter-end, expanding the aircraft's global footprint.
• Service and Support: Expanded its recurring revenue base via new contracts, including support for Jazz Aviation's E175 fleet and a new maintenance agreement for the Brazilian Air Force's KC-390 fleet.

Eve Urban Air Mobility Update

• Eve's flight test campaign is progressing on schedule: after successful hover test flights, the program has moved to transition flights, a key milestone on the path to certification. Embraer expects certification and entry into service by the end of 2028.

Financial Health

• Net debt to adjusted EBITDA (excluding Eve) improved to 0.2x from 0.7x YoY. Average debt maturity increased to 9.3 years, and average debt cost declined to 5.1%. Adjusted net income for Q2 was $290 million, with a 9.8% adjusted net income margin, up 1.1 percentage points YoY.

• Delivery guidance for 2026 is maintained at 80-85 aircraft for commercial aviation and 160-170 aircraft for executive aviation.
• Full-year 2026 revenue guidance is maintained at $8.2 billion to $8.5 billion.
• Adjusted EBIT margin guidance is revised upward to 10%–10.6%, representing a 130 basis point (≈$110 million at midpoint) increase from prior guidance. The upward revision reflects the extraordinary tax credit, resolved U.S. import tariffs, and a better-than-expected business outlook.
• Adjusted free cash flow guidance is revised upward to $400 million or higher, driven by strong operational performance, progress in production leveling initiatives, and strong first-half cash generation.

Consolidated net revenue for Q2 2026 was $2.2 billion, a 23% year-over-year increase. 1. Commercial Aviation: Revenue increased 8% YoY to $625 million, contributing 28% of total consolidated revenue. Adjusted EBIT was $18 million, with a 2.9% margin (the YoY decline was driven by customer mix). 2. Executive Aviation: Revenue increased 32% YoY to $725 million, contributing 32% of total consolidated revenue. Adjusted EBIT was $170 million, with a 23.4% margin; excluding one-off U.S. import tariff and extraordinary tax credit effects, adjusted EBIT margin was 16.1%. 3. Defense and Security: Revenue increased 38% YoY to $304 million, contributing 14% of total consolidated revenue. Adjusted EBIT was $36 million, with an 11.9% margin, driven by stronger KC-390 revenue recognition and operating leverage. 4. Service and Support: Revenue increased 24% YoY to $565 million, contributing 26% of total consolidated revenue. Adjusted EBIT was $106 million, with an 18.7% margin; excluding one-off tariff and tax credit effects, adjusted EBIT margin was 17.6%.

• Commercial Aviation margins faced near-term headwinds from customer mix tied to legacy contracts in Q2 2026.
• Executive Aviation still faces residual supplier delivery delays that force late aircraft movement on the production line, with full production leveling improvements expected in 2027.
• Ongoing indirect U.S. import tariffs will continue to impact the Service and Support segment at an estimated annual cost of $12 million.

Q: What drove Q2's strong margins in executive aviation and defense, and how much is structural versus one-off? What is the margin outlook under the Growficiency efficiency strategy? / A: One-off effects from the net tariff refund and extraordinary tax credit added approximately $54 million to Q2 EBIT for executive aviation. Structural margin gains come from multi-year ongoing production leveling and lean operational initiatives (including Kaizen and Obeya practices) across the entire workforce. Supplier delivery delays are still improving, with full production-leveling benefits expected in 2027, and management expects continued margin improvements going forward.

Q: How should investors think about the long-term structural margin level for the Service and Support segment after 18% EBIT margin in Q2? / A: Management expects this strong margin level to be sustainable in future quarters, driven by operating leverage from scale, newly signed service pool agreements across all business segments, and ongoing efficiency gains. OGMA's GTF engine maintenance business is also expected to contribute improving margins in coming years. Company-wide, management expects profitability to grow faster than revenue over the next several years as efficiency gains deliver disproportionate margin expansion.

Q: What is Embraer's outlook for its investment in Eve, and is the company committed to retaining Eve long-term? / A: Management remains fully confident that Eve will be a key driver of Embraer growth starting in the late 2020s, complementing the company's core business strategy. While hundreds of engineers are supporting Eve's development, engineering resources are also sufficient to support upgrades for current products, new KC-390 configurations, and new product technology development for other segments. Eve is on track to achieve certification and enter service by the end of 2028.

Q: Could you update us on business opportunities for C-390 in India, and when will the project de-risk? / A: India has two major opportunities: a 60-80 aircraft military transport tender (MTA) partnered with Mahindra, and a commercial aviation initiative to introduce E-Jets to India's domestic market partnered with the Adani Group under the Make in India program. Both opportunities are progressing, and Embraer is waiting for the Indian Air Force to issue the formal RFP for the military tender. For Eve, de-risking will occur after key milestones including full transition flights and landing reversals, with material progress expected by early 2007.

Q: What is the plan for C-390 production capacity, can output exceed 10 aircraft per year by 2030? / A: If the Indian MTA opportunity proceeds, Embraer will open a second C-390 assembly line in India, enabling production above 10 units per year. A potential U.S. order could support a third assembly line, enabling further production increases. By 2030, Embraer's Brazilian facility is already planned to produce 10 C-390s per year.