# 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. Published 2026-11-10 by TGOs. Canonical: https://tgos.io/news/2026/11/10/embraer-links-defense-revenue-growth-to-kc-390-revenue/ Embraer's Defense & Security revenue reached $341 million in the third quarter of 2026.[1] The company attributes the year-over-year growth to stronger KC-390 revenue recognition tied to higher volumes, customer mix and product stage.[1] That recognition follows the percentage-of-completion method.[1] 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.[1] Its backlog ended the quarter up 56% year over year.[1] ## Why it matters 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 1. Embraer 3Q26 earnings results (Form 6-K, Nov. 10, 2026) 2. Embraer 2Q26 earnings results (release dated Aug. 10, 2026; Form 6-K signed Aug. 9)