The Brazilian aerospace manufacturer posted US$2.3 billion in third-quarter revenue, raised its full-year financial outlook and reported a 56% year-on-year increase in its Defense & Security backlog. With the KC-390 Millennium gaining new customers in Europe and beyond, defence is becoming an increasingly important contributor to Embraer’s long-term growth.
São Paulo, 10 November 2026 – Embraer has reported its strongest third-quarter revenue on record, reaching US$2.3 billion, an increase of 17% compared with the same period last year. The results reflect broad growth across the company’s four principal business segments, but the performance of Defense & Security offers a particularly interesting perspective on Embraer’s expanding international position.
The company reported adjusted EBIT of US$254.8 million, corresponding to an operating margin of 10.9%, compared with 8.6% in the third quarter of 2025. Adjusted free cash flow excluding Eve reached US$627.7 million, supported by operational performance and customer pre-delivery payments.
Embraer has consequently raised its full-year revenue guidance to US$8.4–8.6 billion, while increasing its adjusted free cash flow forecast, excluding Eve, from at least US$400 million to at least US$700 million.
The higher forecasts reflect management’s confidence in the company’s business performance, particularly the growing contributions from Defense & Security and Services & Support.
Defence growth extends beyond quarterly revenue
Embraer’s Defense & Security division generated US$341 million in revenue during the third quarter, representing a 22% increase year-on-year.
According to the company, the improvement was driven primarily by higher revenue recognition from the KC-390 Millennium programme, reflecting aircraft volumes, customer mix and production stages.
However, the most significant indicator of the division’s longer-term development may be its order backlog.
At the end of September 2026, Embraer’s Defense & Security backlog stood at US$6.1 billion, an increase of 56% compared with the previous year.
The division reported 43 firm orders for the KC-390 Millennium and 25 for the A-29 Super Tucano, with a trailing 12-month book-to-bill ratio of 2.9.
This indicates that new orders have been substantially outpacing recognised revenues, providing a stronger foundation for future production and deliveries.
For Embraer, the figures illustrate how its military aircraft programmes are evolving from individual national acquisitions into a broader international business with increasingly substantial long-term commitments.
KC-390 strengthens its position in Europe
The financial results come at a particularly important moment for the KC-390 Millennium.
On 2 November, just days before the publication of the quarterly earnings, Greece signed an intergovernmental agreement with Portugal for the acquisition of three KC-390 aircraft, with options for another three.
The agreement makes Greece the seventh European country to select the Millennium, joining Portugal, Hungary, the Netherlands, Austria, the Czech Republic and Sweden.
The first Greek aircraft is expected to be delivered in 2027.
For the Hellenic Air Force, the programme represents an important modernisation step, introducing jet-powered military transport and air-to-air refuelling capabilities.
For Embraer, the agreement further strengthens the emerging European KC-390 operator community, where cooperation in training, logistics, maintenance and operational support could become increasingly valuable.
Importantly, the Greek agreement was announced after the end of the third quarter and should therefore be distinguished from the US$6.1 billion Defense & Security backlog reported as of 30 September.
Beyond Europe, the KC-390 continues to expand its global presence. During the third quarter, Colombia signed for two aircraft, contributing to the division’s order activity and reinforcing its position in the Latin American market.
The programme’s appeal increasingly extends beyond replacing ageing transport aircraft. Its combination of tactical airlift, air-to-air refuelling and multi-mission flexibility is attracting customers seeking more versatile military aviation capabilities.
Services and Support becomes a strategic growth driver
Another important development is the performance of Embraer’s Services & Support division, which recorded the strongest percentage revenue growth among the company’s business segments.
Quarterly revenue increased by 30% year-on-year to US$638 million, while the division’s backlog reached a record US$5.6 billion.
Although the segment serves both civilian and military operators, its expansion is particularly relevant to Embraer’s growing defence portfolio.
Military aircraft acquisitions typically establish relationships lasting decades. As the KC-390 operator community expands, demand for maintenance, spare parts, fleet support, training and other services can be expected to grow alongside aircraft deliveries.
During the third quarter, Embraer also announced additional defence-related support agreements, including integrated logistics support for Colombia’s KC-390 fleet, renewed support for Chile’s A-29 Super Tucano aircraft and an expanded training agreement with Sweden.
The commercial opportunity is therefore not limited to producing more aircraft. It increasingly includes supporting those aircraft throughout their operational lives.
A record US$35.7 billion order backlog
Across all business segments, Embraer’s firm order backlog reached an all-time high of US$35.7 billion at the end of the third quarter, an increase of 14% year-on-year.
Commercial Aviation remained the largest contributor, with US$15.8 billion in outstanding orders, followed by Executive Aviation at US$8.2 billion.
The company delivered 66 aircraft during the quarter, compared with 62 in the same period of 2025.
These included 22 commercial jets, 41 executive jets and three military aircraft — one KC-390 Millennium and two A-29 Super Tucanos.
The financial performance was not uniformly positive. Adjusted net income declined from US$84.3 million to US$73.6 million, reflecting higher financial and tax expenses. Net income attributable to shareholders also decreased.
Nevertheless, the combination of stronger operating margins, improved cash generation and a growing order backlog points to an increasingly robust business.
From aircraft sales to long-term defence partnerships
For the European defence aerospace industry, Embraer’s latest results are significant for reasons extending beyond the company’s financial performance.
The KC-390 programme is becoming an increasingly established element of NATO and European military air mobility planning. With seven European nations having selected the aircraft, the opportunity for common training, maintenance, logistics and operational procedures continues to expand.
The growing number of operators also creates opportunities for European aerospace companies participating in industrial cooperation and through-life support activities.
For Embraer, the central challenge will be translating a rapidly expanding order book into predictable production, deliveries and sustained customer support.
Quarterly revenue growth alone does not determine the future of an aerospace manufacturer. In defence aviation, manufacturing capacity, programme execution and long-term customer relationships are equally important.
The third-quarter results suggest that Embraer is strengthening its position on all three fronts.
With record group revenues, a US$6.1 billion defence backlog and continued international success for the KC-390 Millennium, the company’s defence business is becoming an increasingly important pillar of its global aerospace strategy.
Sources: Embraer Q3 2026 financial results, published 10 November 2026; Embraer backlog report, 23 October 2026; Embraer KC-390 Greece announcement and the Hellenic Ministry of National Defence, 2 November 2026. Additional analysis by Aerospace Central Europe.
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