Embraer surged to an ATH following today's earnings report, up over 55% since its mid-2026 pullback.
I remain invested and fully confident in the company.
A few Q3 highlights:
Revenue rose 17% YoY to $2.35B (vs. estimated $2.21B), boosted by all 4 of its segments:
- Services and Support: +30%
- Defense and Security: +22%
- Commercial Aviation: +13%
- Executive Aviation: +12%
Adjusted net income fell to $73.6M from $84.3M, primarily impacted by interest expenses, FX, and tax obligations.
🚀 Order backlog hit a new record: $35.7B (+14%), with around $23B in additional options.
2026 financial guidance:
- Raised revenue: $8.4-8.6B (from $8.2-8.5B)
- Raised FCF: at least $700M (from at least $400M), excluding its Eve air taxi units*
- Maintained adjusted EBIT margin: 10-10.6%
*One thing to watch is Eve's cash drain. While it's a promising growth lever, pre-commercialization and regulatory testing will remain a drag on cash flow in the near term.
Extracted from finviz.com today:
- P/E: 33.44
- Forward P/E: 21.11
- PEG: 0.63
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