Embraer (EMBJ) Reiterate Buy post strong 2Q26 results

Equity Research 13 August 2026 | 11:28PM EDT

Embraer (EMBJ) Reiterate Buy post strong 2Q26 results

EMBJ 12m Price Target: $90.00 Price: $74.22 Upside: 21.3% BUY Noah Poponak, CFA | Our view on the stock post 2Q26 earnings Goldman Sachs & Co. LLC

EMBJ 2Q26 revenue, EBITDA, and free cash flow were ahead of Connor Dessert | consensus. The company raised full-year guidance for margins and Goldman Sachs & Co. LLC

free cash flow. Embraer continues to hold strong positions in the Nizar Mesani | regional jet, business jet, defense and aircraft services markets, all Goldman Sachs India SPL

of which we believe have strong medium-term revenue growth and margin drivers. Valuation remains compelling. We are Buy rated on Key Data _____________________________________ the stock. Market cap: $13.6bn Enterprise value: $13.4bn 3m ADTV: $82.1mn Brazil Key elements of the quarter Americas Aerospace & Defense M&A Rank: 3 2Q26 revenue of $2.24bn was 11% above FactSet consensus. GS Forecast __________________________________ Commercial revenue was up 8% yoy, Executive was up 32% yoy, 12/25 12/26E 12/27E 12/28E

Defense was up 38% yoy, and Services was up 24% yoy. Adjusted Revenue ($ mn) New 7,577.5 8,514.3 9,588.8 10,677.4 Revenue ($ mn) Old 7,577.5 8,659.3 9,485.4 10,465.2 EBITDA of $356mn was above consensus at $249mn, reflecting an EBITDA ($ mn) 839.6 1,110.9 1,172.3 1,329.0

15.9% EBITDA margin. This result includes a $68mn tax credit EBIT ($ mn) EPS ($) New ,074.0 4.93 (+300bp). The company delivered 65 jets in the quarter, including 20 EPS ($) Old P/E (X) commercial aircraft (+1 yoy) and 45 executive jets (+7 yoy). Adjusted Dividend yield (%) 0.0 0.0 0.0 0.0 free cash flow (excluding Eve) was $401mn, compared to our Net debt/EBITDA (X) (0.0) (0.1) (0.6) (1.0)

$(145)mn estimate and consensus at $54mn. Backlog was up 16% 6/26 9/26E 12/26E 3/27E yoy. EPS ($)

GS Factor Profile ______________________________ EMBJ updated guidance for 2026, including commercial jet Growth

deliveries of 80-85 aircraft (reiterated), executive jet deliveries of Financial Returns 160-170 aircraft (reiterated), total revenues between $8.2-$8.5bn Multiple (reiterated, vs. consensus at $8.48bn), adjusted EBIT margin in the range of 10.0-10.6% (8.7-9.3% prior, vs. consensus at 9.2%), and Integrated

adjusted free cash flow >$400mn (>$200mn prior, vs. consensus at $254mn). Percentile 20th 40th 60th 80th 100th

EMBJ relative to Americas Coverage EMBJ relative to Americas Aerospace & Defense

Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Embraer (EMBJ) Balance Sheet ($ mn) _______________________________________ BUY Rating since Sep 23, 2021 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 1,949.8 1,847.4 1,877.4 2,522.4 Accounts receivable Inventory 3,267.1 4,688.5 5,580.6 4,604.9 Ratios & Valuation __________________________________________ Other current assets 1,643.8 1,887.7 1,887.7 1,887.7 12/25 12/26E 12/27E 12/28E Total current assets 7,150.1 9,234.0 10,319.6 9,892.6 P/E (X) Net PP&E 2,130.9 2,227.7 2,315.7 2,410.7 EV/EBITDA (X) Net intangibles 2,721.3 2,980.1 3,295.1 3,620.1 EV/sales (X) 1.3 1.5 1.3 1.1 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) 4.2 1.9 4.0 4.8 Other long-term assets EV/DACF (X) Total assets 12,920.2 15,303.0 16,791.6 16,784.6 CROCI (%) ROE (%) Accounts payable 1,179.7 1,502.9 1,788.8 1,703.2 Net debt/EBITDA (X) (0.0) (0.1) (0.6) (1.0) Short-term debt Net debt/equity (%) ( ) Current lease liabilities -- -- -- -- Interest cover (X) 1.0 2.8 3.6 4.2 Other current liabilities 3,574.1 3,743.2 3,743.2 3,743.2 Inventory days Total current liabilities 4,859.1 5,369.9 5,655.8 5,570.2 Receivable days…