By Isabel Teles
SAO PAULO, Aug 10 (Reuters) - Brazilian planemaker Embraer reported record second-quarter revenue of 11.34 billion reais ($2.23 billion) on Monday, up 10% from a year earlier, alongside a broadly strong performance that triggered a 7% rise in its shares.
The world's third-largest aircraft manufacturer's net profit rose 25% year-on-year to 1.11 billion reais, and EBITDA increased 30% to 1.81 billion reais.
Scotiabank analysts said Embraer's operating performance was strong and broad-based,
with sales increasingly weighted toward the company's higher-margin business segments.
Embraer said its Defense & Security arm remained a standout performer, with revenue rising 22% from a year earlier, driven by stronger revenue for KC-390 Millennium aircraft.
The company delivered 65 aircraft in the second quarter, comprising 45 executive jets and 20 commercial jets, a 7% increase from a year earlier.
"We expect that in 2027 we'll see a much better performance in terms of production leveling, which will help us to see a higher productivity and higher efficiency of our lines," CEO Francisco Gomes Neto told an earnings call.
In commercial aviation, Embraer expects to expand production capacity to 110 to 120 aircraft a year by 2030, another executive added.
Embraer is pursuing opportunities in India and the United States that could support the establishment of additional KC-390 Millennium assembly lines outside Brazil, potentially boosting production capacity depending on the size of future orders, executives said.
The firm's shares outperformed Brazil's benchmark Bovespa index, climbing some 7%, while the broader market declined 0.7%. Year to date, the stock is up 11.1%.
Embraer raised its 2026 free cash flow forecast to $400 million or more, from previous guidance of $200 million or more. It now expects an adjusted EBIT margin of between 10.0% and 10.6% this year, up from a previous forecast of 8.7% to 9.3%.
Aircraft deliveries and consolidated revenue remained unchanged.
($1 = 5.0854 reais)
(Reporting by Isabel Teles in Sao Paulo; Additional reporting by Michael Susin and Alexander Smith)
