Brazil aircraft maker Embraer raises outlook after record revenue

Embraer raised its 2026 profit outlook after posting record second-quarter revenue of $2.24 billion, up 23 percent, and an all-time high order backlog of $34.5 billion. The company expects roughly $110 million more in profit than previously forecast, helped along by a one-off $68 million tax credit that its CFO called a tariff refund.

Civil aircraft remain exempt from direct U.S. tariffs on Brazilian goods, though Embraer still expects about $12 million a year in indirect tariff costs. The company delivered 65 aircraft in the quarter, its best second-quarter tally in 16 years, and landed the largest international order in its history: 10 military transport planes for the United Arab Emirates.

CEO Francisco Gomes Neto noted that countries are accelerating sales campaigns amid the current geopolitical climate, and that air travel demand keeps rising despite higher ticket costs. The company's electric air-taxi subsidiary, Eve Air Mobility, also completed its first transition flight this month.

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