Embraer Executive Aviation Delivers 41 Jets in Q3, Unchanged Year on Year, as Revenue Rises 12% to $655m

Embraer's Executive Aviation division delivered 41 executive jets in the third quarter of 2026, the same as in the third quarter of 2025. Revenue from the segment rose 12% to $655m from $583m, which Embraer attributed to higher prices and product mix. Adjusted EBIT climbed $34m to $105m, lifting the margin to 16.0% from 12.1%, an improvement of 390 basis points.

The quarter's deliveries comprised 22 light and 19 medium jets, against 23 light and 18 medium a year earlier. Deliveries were down from 45 in the second quarter of 2026. Embraer's head of investor relations, Guilherme Paiva, said there is a pricing lag of roughly two to three years given demand for the company's products.

The segment's gross margin rose to 22.2% from 18.7%, as Embraer booked no US import tariffs in the third quarter of 2026, compared with $15m in the same period of 2025. Excluding that tariff cost, the adjusted EBIT margin a year earlier was 14.7%, so the like-for-like gain is about 130 basis points.

Executive Aviation backlog reached a record $8.2bn, up 12% from $7.3bn a year earlier and from $7.8bn in the second quarter of 2026. The trailing 12-month book-to-bill ratio is 1.4 times. CEO Francisco Gomes Neto said demand for the Phenom 300 is "even stronger now with the launch of the EV version" and that Embraer is investing to increase production of the Phenoms and the Praetors. The Phenom 300EV launched in the quarter, and the Praetor 500E and 600E launched earlier this year.

Embraer has delivered 115 executive jets in the first nine months of 2026, 70% of the midpoint of its full-year guidance of 160 to 170. That guidance implies 45 to 55 deliveries in the fourth quarter, against 53 in the fourth quarter of 2025.

Paiva said the company has moved close to 10 points of Executive Aviation production out of the fourth quarter to spread output more evenly across the year. Felipe Santana de Lima said Embraer wants more deliveries in the first quarter of 2027 in both executive and commercial.

Embraer is targeting 200 executive jet deliveries a year by 2028. It plans to spend $195m between 2024 and 2028 to expand production capacity at Gavião Peixoto in Brazil and Melbourne, Florida. Paiva said group capex should rise temporarily to $500m to $550m in 2027 and 2028 before returning to the usual $400m.

A quarter in which unit deliveries stand still while revenue rises 12% and margin widens shows how earnings in the light and medium jet segment are currently being made: through price realisation and mix rather than through volume. Tariff costs also matter at this scale, since removing a $15m charge accounts for much of the year-on-year margin gain, leaving roughly 130 basis points as the underlying improvement.

A backlog at a record $8.2bn, with a trailing book-to-bill ratio of 1.4 times, means orders are being added faster than aircraft are delivered. When that holds, the constraint on a manufacturer's results shifts from demand to production slots and supply chain throughput, which is why capacity spending at the two assembly sites sits alongside the delivery target.

The next milestone is the fourth-quarter delivery count against the 45 to 55 range implied by guidance, and whether the production moved out of that quarter shows up as a stronger first quarter of 2027.