Embraer revenues up 30%, margins under pressure in Q1 2026

In addition, selling expenses saw massive jump tied in part to the company’s announcement of Praetor 500/600 ‘E’ family models.

Embraer’s Executive Aviation division opened 2026 with its strongest first-quarter delivery performance tossing the revenue up by 30% year-over-year to $418m.

The Brazilian aerospace manufacturer delivered 29 executive jets in Q1 2026, comprising 16 light jets and 13 midsize aircraft, a 26% increase on the 23 aircraft handed over in the same period a year earlier.

However, the company’s gross margins compressed sharply from 21.8% of the revenue in Q1 2025 to 15.1% in Q1 2026. Following through this, the adjusted EBIT margin fell from 11.3% to 6.0% over the same period.

The company pinned this to the impact from US import tariffs costing the company nearly $12m on the segment during the quarter eroding 280 basis points of margin.

In addition, selling expenses saw massive jump tied in part to the company’s announcement of Praetor 500/600 ‘E’ family models.

The company has factored a 10% US tariff assumption into its full-year guidance, suggesting management does not expect near-term relief.

For the executive jet business – which relies heavily on US-based buyers and production facilities – the tariff woes are likely to stay rather than being a one-off shock.

On the backlog side, Executive Aviation held steady at $7.6bn, broadly flat year-over-year, even as the company-wide backlog surged 22% to a record $32.1bn.

To improve its capacity, Embraer is midway through a $90m capital investment programme at its Gavião Peixoto facility in Brazil and its Melbourne, Florida plant, targeting a meaningful increase in production capacity by 2027.