Embraer’s Executive Aviation revenue rises 32% in second quarter
The segment was the fastest growing of Embraer’s four business units on a percentage basis after Defense & Security.
Embraer’s Executive Aviation segment generated revenue of $725m in the second quarter of 2026, up 32% from $549m in the same period last year, according to the company’s second-quarter earnings results.
The segment was the fastest growing of Embraer’s four business units on a percentage basis after Defense & Security.
“In Executive Aviation, we achieved record second quarter revenues and deliveries, supported by strong market demand. We also received a triple certification for the Praetor 500E and Praetor 600E,” said Francisco Neto, president and CEO, on the company’s earnings call.
The revenue growth came alongside a jump in deliveries. Embraer delivered 45 executive aviation aircraft in the quarter, up 55% from 29 in the first quarter and 18% higher than the 38 delivered a year earlier, marking the strongest second-quarter executive aviation delivery performance in 16 years.
Deliveries were split between 24 small jets and 21 medium jets, up from 13 medium jets in the first quarter. For the first half of the year, Embraer delivered 74 executive aviation aircraft, up about 21% from 61 a year earlier, and the company maintained its full-year guidance of 160 to 170 deliveries for the segment.
Embraer said the Executive Aviation growth was supported by higher volumes and product mix.
Gross margin for the segment rose to 23.8% from 20.9% a year earlier, which the company attributed to improved volumes, pricing and lower U.S. tariff costs during the period. Tarriff costs amounted to $6m, or 83bps, compared with $10m, or 175bps, a year ago.
Adjusted EBIT margin for Executive Aviation rose to 23.4% in the quarter, from 14.5% in the second quarter of 2025, a gain Embraer attributed to stronger operating performance and an extraordinary $60m tax credit worth 820 basis points to the margin.
“Q2 was really strong for us in Executive Aviation. We have done a lot of progress in our production level initiatives in the last 2 years, and we’re close to where we want to be. That has definitely helped the results,” said Guilherme Paiva, head of investor relations, on the call. “In the quarter, when you look at Executive, obviously we had also the impact of the tax credit and the tariff payments, and that helped the results on a net basis for the division for around $54 million at the EBIT level.”
Neto said executive jet production was benefiting from the company’s production-levelling initiative, though some supplier delays remain. “We still have some issues to be fixed with a few suppliers that are still delivering parts late… forcing us to move aircraft late in the line, but it’s improving,” he said.
“We expect that in 2027, we’ll see a much better performance in terms of production level, which will help us to see a higher productivity and high efficiency of our lines.”
Excluding the effects of both US tariffs and the tax credit, Embraer said Executive Aviation’s adjusted EBIT margin would have been 16.1% in the quarter.
Embraer’s companywide adjusted EBIT, which strips out $11.1m tied to the results of eVTOL affiliate Eve, was $296.9m in the quarter, a 13.3% margin.
Reported EBIT was $285.8m, or a 12.8% margin, up from $179.5m, or 9.9%, in the second quarter of 2025. The company said the gain was driven primarily by stronger operating performance and a $68m extraordinary tax credit across the business.
Excluding the effects of tariffs and the tax credit at the group level, Embraer said adjusted EBIT margin would have been 10.6% in the quarter.
