Industry · Military transport
Embraer links defense revenue growth to KC-390 revenue recognition
Defense & Security revenue rose 22% year over year in the third quarter, with KC-390 revenue recognized using the percentage-of-completion method.
Embraer's Defense & Security revenue reached $341 million in the third quarter of 2026. The company attributes the year-over-year growth to stronger KC-390 revenue recognition tied to higher volumes, customer mix and product stage.1
Defense & Security backlog was up 56% year over year at the end of 3Q26
Embraer Defense & Security
Defense & Security backlog was up 56% year over year at the end of 3Q26; Services & Support +14%, Executive Aviation +12%, Commercial Aviation +4%
Embraer Defense & Security revenue in 3Q26 (quarter ended Sept 30, 2026) was US$341 million, up 22% year over year
Defense & Security 3Q26 gross margin rose from 20.3% to 23.4% year over year; Adjusted EBIT margin rose from 12.9% to 15.7%
Source: Embraer 3Q26 earnings results, SEC Form 6-K, Nov. 10, 2026.
Sources
That recognition follows the percentage-of-completion method. Aircraft handovers are a separate measure: during the quarter, Embraer delivered one KC-390 Millennium and two A-29 Super Tucano aircraft.1
The unit's third-quarter adjusted EBIT margin rose to 15.7% from 12.9% a year earlier. Its backlog ended the quarter up 56% year over year.1
Aircraft deliveries alone do not explain quarterly defense revenue under the percentage-of-completion method.1–2 In the second quarter of 2026, the defense unit recorded $304 million in revenue with no aircraft deliveries.2
Sources (2)
- Embraer 3Q26 earnings results (Form 6-K, Nov. 10, 2026) www.sec.gov
- Embraer 2Q26 earnings results (release dated Aug. 10, 2026; Form 6-K signed Aug. 9) www.sec.gov