Embraer S.A. is heading toward 2027 with increasing aircraft production, a record order book and a stronger earnings outlook, extending the improvement in its operations over the past several years.

The latest evidence came in early October, when Embraer reported 66 aircraft deliveries during the third quarter of 2026, the strongest third-quarter delivery performance in its history. Deliveries increased 6% from a year earlier, bringing the first nine months of 2026 to 175 aircraft, 14% above the 153 delivered in the comparable period of 2025.

Commercial Aviation delivered 22 aircraft during the quarter, evenly divided between 11 E175s and 11 E2-family aircraft. Executive Aviation delivered 41 business jets, while Defense & Security delivered one KC-390 Millennium and two A-29 Super Tucanos.

The production gains follow strong financial performance earlier in the year. In August, Reuters reported that second-quarter revenue reached a record $2.23 billion, up 10% year over year, while net profit increased 25% and EBITDA climbed 30%. Analysts at Scotiabank, cited by Reuters, described operating performance as strong and broad-based, with sales increasingly weighted toward higher-margin business segments.

Perhaps more significant for the company's longer-term outlook is its expanding order book. Embraer's backlog reached a record $34.5 billion at the end of the second quarter, 16% higher than a year earlier. Commercial Aviation accounted for $15.1 billion, Executive Aviation $7.8 billion, Defense & Security $6.1 billion, and Services & Support $5.5 billion.

Defense is becoming an increasingly important contributor. The Defense & Security backlog stood at $6.1 billion, up 42% from a year earlier, at the end of the second quarter. Embraer said the increase was driven by an agreement with the United Arab Emirates involving 10 firm C-390 Millennium orders and 10 options.

The improving operating picture prompted management to raise its financial outlook for 2026. Reuters reported in August that Embraer increased its adjusted EBIT-margin forecast to 10.0%-10.6%, up from 8.7%-9.3%, and doubled its free-cash-flow forecast to at least $400 million, from at least $200 million. Revenue and aircraft-delivery guidance remained unchanged.

The company's improving business and financial profile has also drawn recognition from the credit markets. In September, Fitch Ratings upgraded Embraer's long-term issuer rating to BBB with a stable outlook, citing increased product and geographic diversification, greater medium-term revenue visibility, margin improvements, positive free-cash-flow generation, conservative leverage and robust liquidity. Fitch Ratings also said supply-chain bottlenecks had eased and normalized during 2026.

Risks remain. Fitch Ratings estimates that North America accounts for around 60% of revenue, leaving Embraer exposed to regional-airline capacity decisions, scope-clause restrictions and trade policy.

Management, meanwhile, is increasingly focused on the company's next stage of expansion. Chief Executive Francisco Gomes Neto said in an August earnings call that 2027 should bring better production leveling, supporting higher productivity and efficiency. Company executives also said Embraer expects to expand commercial-aircraft production capacity to 110 to 120 aircraft annually by 2030.

For 2026, Embraer continues to target 80 to 85 commercial-aircraft deliveries and 160 to 170 executive jets.

As 2027 approaches, the broader picture is markedly stronger than it was only a few years ago. Higher production, record demand, an expanding defense business, improved profitability and a stronger credit profile have placed Embraer in a favorable position heading into the new year. Its challenge will be converting its unusually large order book into aircraft, revenue and cash while sustaining recent improvements in manufacturing efficiency and margins.