Q2 2026 Embraer SA Earnings Call

August 10, 2026

Speaker #1: Good morning, ladies and gentlemen, and thank you for standing by. As a reminder, this conference is being recorded. Its broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer.

Gui Paiva: Good morning, ladies and gentlemen, and thanks for standing by. As a reminder, this conference is being recorded. Its broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer. This conference call will be conducted in English. Please let me say a short announcement for Portuguese speakers. My name is Gui Paiva, and I'm the head of Investor Relations, M&A, and venture capital for Embraer. Welcome to Embraer's Q2 2026 earnings conference call. The numbers in this presentation contain non-GAAP financial information to help investors reconcile Eve's financial information in GAAP standards to Embraer's IFRS. We remind you Eve's results were already discussed at the company's conference call last week. Before we begin, a legal notice to everyone.

Gui Paiva: Good morning, ladies and gentlemen, and thanks for standing by. As a reminder, this conference is being recorded. Its broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer. This conference call will be conducted in English. Please let me say a short announcement for Portuguese speakers. [Foreign language] My name is Gui Paiva, and I'm the head of Investor Relations, M&A, and venture capital for Embraer. Welcome to Embraer's Q2 2026 earnings conference call. The numbers in this presentation contain non-GAAP financial information to help investors reconcile Eve's financial information in GAAP standards to Embraer's IFRS. We remind you Eve's results were already discussed at the company's conference call last week. Before we begin, a legal notice to everyone.

Speaker #1: This conference call will be conducted in English, so please let me say a short announcement for Portuguese speakers. Essa conferência será realizada originalmente em inglês, para ouvir a tradução em português primeiro selecione o idioma no botão Interpretação e segundo desative o áudio original na plataforma Zoom.

Speaker #1: My name is Guy Paiva, and I'm the head of Investor Relations, M&A, and Venture Capital for Embraer. Welcome to Embraer’s second quarter 2026 earnings conference call.

Speaker #1: The numbers in this presentation contain non-GAAP financial information to help investors reconcile EVE's financial information in GAAP standards to Embraer's IFRS. We remind you EVE's results were already discussed at the company's conference call last week.

Speaker #1: Before we begin, a legal notice to everyone: This presentation may contain forward-looking statements which involve risks and uncertainties, as detailed in the disclaimer available in the slides.

Gui Paiva: This presentation may contain forward-looking statements, which involve risks and uncertainties, as detailed in the disclaimer available in the slides and in the documents filed with the Brazilian Securities Commission, CVM. At this time, all participants are in a listen-only mode. Instructions for the Q&A section will be provided later. Participants on today's conference call are Francisco Gomes Neto, President and CEO of Embraer, Felipe Santana, Chief Financial Officer, Thais Moraes, Corporate Communications Director, and myself. This conference call consists of three parts. First, we'll present the results for Q2 2026. Second, we'll host a Q&A session exclusively for investors. Finally, we'll hold a dedicated Q&A session for the press. It is my pleasure to now turn the conference call to our President and CEO, Francisco Gomes Neto. Please go ahead, Francisco.

Speaker #1: And in the documents filed with the Brazilian Securities Commission (CVM). At this time, all participants are in listen-only mode. Instructions for the Q&A session will be provided later.

Speaker #1: Participants on today's conference call are Francisco Gomes Neto, President and CEO of Embraer; Felipe Santana, Chief Financial Officer; Thais Morais, Corporate Communications Director; and myself.

Speaker #1: This conference call consists of three parts. First, we'll present the results for the second quarter of 2026. Second, we'll host a Q&A session exclusively for investors.

Speaker #1: And finally, we'll hold a dedicated Q&A session for the press. It is my pleasure to now turn the conference call over to our President and CEO, Francisco Gomes Neto.

Speaker #1: Please go ahead, Francisco.

Speaker #2: Thank you, Guy. Good morning and good afternoon, everyone. It is a pleasure to be with you today to discuss EMBRAER's second quarter 2026 results.

Francisco Gomes Neto: Thank you, Gui. Good morning and good afternoon, everyone. It is a pleasure to be with you today to discuss Embraer's Q2 2026 results. We delivered the strongest Q2 revenue in our history. We achieved our highest Q2 deliveries in the past 16 years, and reached a new all-time high backlog for the seventh consecutive Q. Simply put, we're continually executing the fundamentals exceptionally well. These results further strengthen our confidence in the outlook for our businesses and have led us to raise our 2026 guidance, also supported by favorable effects. Let me now turn to the key highlights of the quarter. In commercial aviation, Azura placed an order for 15 E195-E2 aircraft while maintaining 15 purchase rights.

Speaker #2: We delivered the strongest second quarter revenue in our history. We achieved our highest second quarter deliveries in the past 16 years, and reached a new all-time high backlog for the seventh consecutive quarter.

Speaker #2: We continue to see strong performance across all our business units. Driven by our focus on sales execution, efficiency, operational discipline, and production ramp-up. Simply put, we continually executing the fundamentals exceptionally well.

Speaker #2: These results further strengthen our confidence in the outlook for our businesses and have led us to raise our 2026 guidance, also supported by favorable effects.

Speaker #2: Let me now turn to the key highlights of the quarter. In Commercial Aviation, Azura placed an order for 15 E195-E2 aircraft, while maintaining 15 purchase rights.

Speaker #2: During the quarter, the E2 program surpassed the milestone of 500 firm orders. In Executive Aviation, we achieved record second quarter revenues and deliveries, supported by strong market demand.

Francisco Gomes Neto: During the quarter, the E2 program surpassed the milestones of 500 firm orders. In executive aviation, we achieved the record Q2 revenues and deliveries supported by strong market demand. We also received a triple certification for the Praetor 500E and Praetor 600E. In defense and security, the UAE ordered 10 C-390 aircraft with options for an additional 10 units. This marks the platform's first selection in the Middle East, the largest international order for the C-390 to date. In service and support, we continue to expand our recurring revenue base through new contracts, including support for Jet Aviation's E175 fleet and a new maintenance agreement with the Brazilian Air Force covering its KC-390 fleet. During the quarter, we delivered 65 aircraft, 20 commercial jets, and 45 executive jets. Total company deliveries increased by nearly 7% year over year, with commercial aviation growing 5% and executive aviation growing 18%.

Speaker #2: We also received the triple certification for the Pretor 500E in Pretor 600E. In defense and security, the UAE ordered 10 C390 aircraft, with options for an additional 10 units.

Speaker #2: This marks the platform's first selection in the Middle East, in the largest international order for the C390 to date. In service and support, we continue to expand our recurring revenue base through new contracts, including support for JAS Aviation's E175 fleet, and a new maintenance agreement with the Brazilian Air Force covering its KC390 fleet.

Francisco Gomes Neto: In service and support, we continue to expand our recurring revenue base through new contracts, including support for Jet Aviation's E175 fleet and a new maintenance agreement with the Brazilian Air Force covering its KC-390 fleet. During the quarter, we delivered 65 aircraft, 20 commercial jets, and 45 executive jets. Total company deliveries increased by nearly 7% year-over-year, with commercial aviation growing 5% and executive aviation growing 18%.

Speaker #2: During the quarter, we delivered 65 aircraft, 20 commercial jets, and 45 exactive jets. Total company deliveries increased by nearly 7% year over year. With commercial aviation growing 5% and exactive aviation growing 18%, the commercial aviation we delivered 30 aircraft in the first half of the year, representing 36% of the midpoint of our full-year guidance, 1% point above the five-year average.

Francisco Gomes Neto: In Commercial Aviation, we delivered 30 aircraft in H1, representing 36% of the midpoint of our full year guidance, 1 percentage point above the five-year average. In Executive Aviation, we delivered 74 aircraft in H1, representing 45% of the midpoint of our full year guidance, and an impressive 11% above the five-year average. Our company-wide backlog reached $34.5 billion, an increase of 16% year over year, and another all-time record for Embraer. Commercial Aviation backlog grew 15% year over year, supported by a 1.8 book-to-bill ratio over the last 12 months. Defense and Security backlog increased 42% with a strong 2.6 book-to-bill ratio. Executive Aviation backlog grew 5% year over year, while Service and Support increased 12%, with both segments maintaining book-to-bill ratios above one.

Francisco Gomes Neto: In Commercial Aviation, we delivered 30 aircraft in H1, representing 36% of the midpoint of our full year guidance, 1 percentage point above the five-year average. In Executive Aviation, we delivered 74 aircraft in H1, representing 45% of the midpoint of our full year guidance, and an impressive 11% above the five-year average. Our company-wide backlog reached $34.5 billion, an increase of 16% year-over-year, and another all-time record for Embraer. Commercial Aviation backlog grew 15% year-over-year, supported by a 1.8 book-to-bill ratio over the last 12 months. Defense and Security backlog increased 42% with a strong 2.6 book-to-bill ratio. Executive Aviation backlog grew 5% year-over-year, while Service and Support increased 12%, with both segments maintaining book-to-bill ratios above one.

Speaker #2: In exactive aviation, we delivered 74 aircraft in the first half, representing 45% of the midpoint of our full-year guidance, and an impressive 11% pointage above the five-year average.

Speaker #2: Our company-wide backlog reached $34.5 billion, an increase of 16% year over year, and another all-time record for Embraer. Commercial aviation backlog grew 15% year over year, supported by a 1.8 book-to-build ratio over the last 12 months.

Speaker #2: Defense and security backlog increased 42%, with a strong 2.6 book-to-build ratio. Exactive aviation backlog grew 5% year over year, while service and support increased 12%, with both segments maintaining book-to-build ratios above 1.

Speaker #2: In addition, we hold approximately $21 billion in options, which could expand our backlog to more than $55 billion over time if exercised. I would also like to provide a brief update on Eve's continued progress.

Francisco Gomes Neto: In addition, we hold approximately $21 billion in options, which could expand our backlog to more than $55 billion over time if exercised. I would also like to provide a brief update on Eve's continued progress. The flight testing campaign is advancing according to plan. Following the successful completion of hover flights, the team is now moving into transition flights, an important next step on the path towards certification. With that, I will now hand the call over to Felipe, who will walk you through our financial results. Felipe, the floor is yours.

Speaker #2: The flight test campaign is advancing according to plan. Following the successful completion of hover flights, the team is now moving into transition flights, an important next step on the path toward certification.

Speaker #2: With that, I will now hand the call over to Felipe, who will walk you through our financial results. Felipe, the floor is yours.

Speaker #1: Thank you, Francisco. Good morning and good afternoon, everyone. Let me start with the results by business unit. Our comparisons are year over year, unless otherwise noted.

Felipe Santana Santiago de Lima: Thank you, Francisco. Good morning, and good afternoon, everyone. Let me start with the results by business unit. All comparisons are year over year, unless otherwise noted. Starting with Commercial Aviation, revenues increased 8% to $625 million, driven by higher volumes. Adjusted EBIT totaled $80 million with a +2.9% of margin. The year over year decline was primarily due to customer mix. In Executive Aviation, revenues increased at 32% to $725 million, supported by higher volumes and product mix. Adjusted EBIT reached $170 million with a +23.4% of margin. These results include the strong operating performance and the effects of US import tariffs and extraordinary tax credit. Excluding both effects, adjusted EBIT margin would have been 16.1%. In Defense and Security, revenues increased 38%, reaching $304 million. Adjusted EBIT was $36 million, with a +11.9% of margin, supported by stronger KC-390 revenue recognition and operating leverage.

Felipe Santana Santiago de Lima: Thank you, Francisco. Good morning, and good afternoon, everyone. Let me start with the results by business unit. All comparisons are year-over-year, unless otherwise noted. Starting with Commercial Aviation, revenues increased 8% to $625 million, driven by higher volumes. Adjusted EBIT totaled $80 million with a +2.9% of margin. The year-over-year decline was primarily due to customer mix. In Executive Aviation, revenues increased at 32% to $725 million, supported by higher volumes and product mix.

Speaker #1: Starting with commercial aviation, revenues increased 8% to $625 million, driven by higher volumes. Adjusted EBIT totaled $18 million, with a positive margin of 2.9%.

Speaker #1: The year-over-year decline was primarily due to customer mix. In Executive Aviation, revenues increased 32% to $725 million, supported by higher volumes and product mix.

Speaker #1: Adjust EBIT reached 170 million dollars, with a positive 23.4% of margin. These results include strong operating performance and the effects of U.S. import tariffs, and they started Norway tax credit.

Felipe Santana Santiago de Lima: Adjusted EBIT reached $170 million with a +23.4% of margin. These results include the strong operating performance and the effects of US import tariffs and extraordinary tax credit. Excluding both effects, adjusted EBIT margin would have been 16.1%. In Defense and Security, revenues increased 38%, reaching $304 million. Adjusted EBIT was $36 million, with a +11.9% of margin, supported by stronger KC-390 revenue recognition and operating leverage.

Speaker #1: Excluding both effects, adjust EBIT margin would have been 16.1%. In defense security, revenues increased 38%, reaching 304 million dollars. Adjust EBIT was 36 million dollars, with a positive 11.9% of margin, supported by stronger KC390 revenue recognition and operating leverage.

Speaker #1: In Service and Support, revenues increased 24% to $565 million, driven by higher volumes. Adjusted EBIT totaled $106 million, with a positive margin of 18.7%.

Felipe Santana Santiago de Lima: In Service and Support, revenues increased 24% to $565 million, driven by higher volumes. Adjusted EBIT totaled $106 million with a +18.7% of margin. These results include US import tariffs and an extraordinary tax credit. Excluding both items, adjusted EBIT margin would have been 17.6%. At the consolidated level, net revenues increased at 23% to $2.2 billion in Q2. From business mix perspective, Executive Aviation represented 32% of revenues, Commercial Aviation, Service more than 25% each, and Defense 14%. In H1, revenues reached $3.7 billion, representing 44% of the midpoint of our full year guidance. Adjusted EBITDA was $356 million, with a +15.9% of margin, while adjusted EBIT totaled $297 million with a +13.3% of margin. During the quarter, the company recorded approximately $8 million of US import tariffs and an extraordinary tax credit of $68 million.

Speaker #1: These results include U.S. import tariffs and an extraordinary tax credit, excluding both items adjust EBIT margin would have been 17.6%. At the consolidated level, net revenues increased 23%, to 2.2 billion dollars in the second quarter.

Speaker #1: From a business mix perspective, executive aviation represented 32% of revenues, commercial aviation serviced more than 25% each, and defense 14%. In the first half, revenues reached $3.7 billion, representing 44% of the midpoint of our full-year guidance.

Speaker #1: Adjust EBITDA was 356 million dollars, with a positive 15.9% of margin, while adjust EBIT totaled 297 million dollars, with a positive 13.3% of margin.

Speaker #1: During the quarter, the company recorded approximately $8 million of U.S. import tariffs and an extraordinary tax credit of $68 million. Excluding both effects, adjusted EBIT margin would have been 10.6%.

Felipe Santana Santiago de Lima: Excluding both effects, adjusted EBIT margin would have been 10.6%. In H1, adjusted EBIT margin reached 10.6% or 5.5 percentage points higher than the 5-year average. Adjusted free cash flow, excluding Eve, was BRL 401 million in the quarter. This reflects stronger operating results, sales-related pre-down payments, and extraordinary tax credit. Investment totaled BRL 121 million during the quarter, including BRL 42 million in CapEx, BRL 24 million in tangible additions, BRL 18 million in the pool program, and BRL 36 million in research. Research expenses include engineering service to current projects, as well as other development technologies for future programs. Adjusted net income was BRL 219 million in the last quarter. Adjusted net income margin was +9.8%, up 1.1 percentage points, mainly due to operating performance and lower net financial expenses, which were partially offset by higher taxes. Earnings per ADS now stands at BRL 2.50 on a last 12-month basis.

Speaker #1: In the first half, adjusted EBIT margin reached 10.6%, or 5.5 points higher than the five-year average. Adjusted free cash flow, excluding EVE, was $401 million in the quarter.

Speaker #1: This reflects stronger operating results, sales-related pre-down payments, and an extraordinary tax credit. Investment totaled $121 million during the quarter, including $42 million in additions, $18 million in the pool program, and $36 million in research.

Speaker #1: Research expenses, including engineering service to current projects, as well as other developments and technologies for future programs. Adjusted net income was $219 million in the last quarter. Adjusted net income margin was positive 9.8%, up 1.1 points, mainly due to operating performance and lower net financial expenses, which were partially offset by higher taxes.

Felipe Santana Santiago de Lima: Research expenses include engineering service to current projects, as well as other development technologies for future programs. Adjusted net income was BRL 219 million in the last quarter. Adjusted net income margin was +9.8%, up 1.1 percentage points, mainly due to operating performance and lower net financial expenses, which were partially offset by higher taxes. Earnings per ADS now stands at BRL 2.50 on a last 12-month basis.

Speaker #1: Earnings per ADS now stand at $2.50 on a last-12-month basis. Net debt to adjusted EBITDA, excluding EVE, improved to 0.2 times in the quarter, from 0.7 times a year ago.

Felipe Santana Santiago de Lima: Net debt to adjusted EBITDA, excluding IF, improved to 0.2x in the quarter from 0.7x a year ago. Through our liability management initiatives, average debt maturity increased to 9.3 years, and its average cost declined to 5.1%. During the quarter, we declared BRL 200 million in interest on equity. This corresponds to BRL 0.28 per share or approximately $0.22 per ADS. Based on the share price at the quarter end, this represents a dividend yield of approximately 0.34%. From an operational standpoint, we are maintaining our delivery guidance unchanged at 80 to 85 aircraft in commercial aviation and 160 to 170 aircraft in executive aviation. On the financial side, revenue guidance remains unchanged at BRL 8.2 billion to BRL 8.5 billion. However, we are increasing our adjusted EBIT margin guidance to between 10% and 10.6%.

Speaker #1: Through our liability management initiatives, average debt maturity increased to 9.3 years, and its average cost declined to 5.1%. During the quarter, we declared 200 million in interest on equity, this corresponds to 0.28 per share, or approximately 0.22 cents of dollars per ADS.

Speaker #1: Based on the share price at quarter end, this represents a dividend yield of approximately 0.34%. From an operational standpoint, we are maintaining our delivery guidance unchanged, at 80 to 85 aircraft in commercial aviation and 160 to 170 aircraft in executive aviation.

Speaker #1: On the financial side, revenue guidance remains unchanged at $8.2 billion to $8.5 billion. However, we are increasing our adjusted EBIT margin guidance to between 10% and 10.6%.

Speaker #1: At the midpoint, this represents an increase of approximately $110 million, or 130 basis points, reflecting the extraordinary tax credit, lower U.S. tariffs, and a better business outlook.

Felipe Santana Santiago de Lima: At the midpoint, this represents an increase of approximately BRL 110 million or 130 basis points, reflecting the extraordinary tax credit, lower U.S. tariffs, and a better business outlook. We are also increasing our adjusted free cash flow guidance to BRL 400 million or higher, reflecting strong operational performance, progress in our production leveling initiatives, and a strong H1 cash generation. With that, I will hand back to Francisco for his closing remarks. Thank you.

Speaker #1: We are also increasing our adjusted free cash flow guidance to 400 million dollars, or higher, reflecting strong operational performance, progress in our production leveling initiatives, and a strong first half cash generation.

Speaker #1: With that, I will hand it back to Francisco for his closing remarks. Thank you.

Speaker #2: Thank you, Felipe. The second quarter of 2026 reinforced our confidence in Embraer's strategic positioning and our ability to consistently execute. We have also started the third quarter with strong momentum, including the announcement of 28 additional E2 orders and welcomed Colombia as the newest KC-390 customer.

Francisco Gomes Neto: Thank you, Felipe. The Q2 2026 reinforced our confidence in Embraer's strategic positioning and our ability to consistently execute. We have also started Q3 with strong momentum, including the announcement of 28 additional E2 orders, and welcomed Colombia as the newest KC-390 customer. Colombia became the 13th country worldwide to select the KC-390, further expanding the aircraft's global footprint. We were also pleased to introduce the new EV edition of our best-selling Phenom 300. Strong demand across our businesses continues to support our growth trajectory. Our performance reflects the discipline, focus, commitment, and energy of our people across the organization. Their dedication enables us to deliver stronger results today while continuing to invest in the technologies that will drive our future growth. Behind these achievements are the values that guide everything we do, safety first and quality always.

Speaker #2: Colombia became the 13th country worldwide to select the KC-390, further expanding the aircraft's global footprint. We were also pleased to introduce the new EV edition of our best-selling Phenom 300s. Strong demand across our businesses continues to support our growth trajectory.

Francisco Gomes Neto: Strong demand across our businesses continues to support our growth trajectory. Our performance reflects the discipline, focus, commitment, and energy of our people across the organization. Their dedication enables us to deliver stronger results today while continuing to invest in the technologies that will drive our future growth. Behind these achievements are the values that guide everything we do, safety first and quality always. With that, we are now ready to take your questions.

Speaker #2: Our performance reflects the discipline, focus, commitment, and energy of our people across the organization. Their dedication enables us to deliver stronger results today while continuing to invest in the technologies that will drive our future growth.

Speaker #2: Behind this achievement are the values that guide everything we do: safety first and quality always. With that, we are now ready to take your questions.

Francisco Gomes Neto: With that, we are now ready to take your questions.

Speaker #3: Well, now start the question and answer session. We remind you again that this conference is being recorded. Its broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of EMBRAER.

Operator: We'll now start the question and answer session. We remind you again that this conference is being recorded. Its broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer. We also highlight that this conference call is being conducted in English with translation to Portuguese. We request participants interested in asking questions to press the Raise-a-Hand button on the platform. When your name is announced, please make sure your microphone is on and start your question. To give everyone a chance to participate, we request to ask just one question per time. If you need assistance, please use the Q&A button on the platform. We'll also answer questions sent via the platform chat. The first part of the Q&A session will be exclusively for equity research analysts and investors.

Operator: We'll now start the question-and-answer session. We remind you again that this conference is being recorded. Its broadcast is intended exclusively for the participants of this event and may not be reproduced or retransmitted without the express authorization of Embraer. We also highlight that this conference call is being conducted in English with translation to Portuguese. We request participants interested in asking questions to press the Raise-a-Hand button on the platform. When your name is announced, please make sure your microphone is on and start your question.

Speaker #3: We also highlight that this conference call is being conducted in English, with translation to Portuguese. We request participants interested in asking questions to press the raise a hand button on the platform.

Speaker #3: When your name is announced, please make sure your microphone is on and start your question. To give everyone a chance to participate, we request to ask just one question per time.

Operator: To give everyone a chance to participate, we request to ask just one question per time. If you need assistance, please use the Q&A button on the platform. We'll also answer questions sent via the platform chat. The first part of the Q&A session will be exclusively for equity research analysts and investors. The second part of the Q&A will be only for the press. The first question comes from Kristine Liwag with Morgan Stanley. Please go ahead.

Speaker #3: If you need assistance, please use the Q&A button on the platform. We'll also answer questions sent via the platform chat. The first part of the Q&A session will be exclusively for equity research analysts and investors; the second part of the Q&A will be only for the press.

Operator: The second part of the Q&A will be only for the press. The first question comes from Kristine Liwag with Morgan Stanley. Please go ahead.

Speaker #3: The first question comes from Christine Duhague with Morgan Stanley. Please go ahead.

Speaker #4: Hey, good morning Francisco, Felipe, Guy, and Thais. I wanted to ask about margins. Margins were a clear standout in the quarter. Can you talk more about them and provide more detail about what drove operating leverage in Executive Aviation and Defense?

Kristine Liwag: Hey. Good morning, Francisco, Felipe, Gui, and Thais. I wanted to ask about margins. Margins were a clear standout in the quarter. Can you talk about more and provide more detail about what drove operating leverage in executive aviation and defense? Was there anything that was one time in the quarter? Basically, how should we think about this as being structural change in your cost structure versus quarter specific? Any update regarding your Growficiency strategy would be really helpful so that we can better understand your margin trajectory from here.

Speaker #4: Was there anything that was one-time in the quarter? Basically, how should we think about this as being a structural change in your cost structure versus quarter-specific?

Speaker #4: And any update regarding your growth efficiency strategy would be really helpful, so that we can better understand your margin trajectory from here.

Speaker #1: Hi, Christine. Good morning. And thanks for the call. Q2 was really strong for us in exactive aviation. We have done a lot of progress in our production leveling initiatives in the last two years.

Felipe Santana Santiago de Lima: Hi, Kristine. Good morning, and thanks for the call. Q2 was really strong for us in executive aviation. We have done a lot of progress in our production leveling initiatives in the last two years. We're close to where we want to be. That has definitely helped the results. In the quarter, when you look at executive, obviously we have also the impact of a tax credit and the tariff payments, that helped the results on a net basis for the division for around BRL 54 million at the EBIT level.

Speaker #1: And we are almost close to where we want to be. That has definitely helped the results. In the quarter, when you look at exactly, obviously we have also the impact of a tax credit and the tariff payments.

Speaker #1: And that helped the results on a net basis for the division for around $54 million at the EBIT level.

Speaker #4: Great. And anything about what would be structural change in your cost structure versus and thinking about the broader growth efficiency plan in the next few years?

Kristine Liwag: Great. Anything about what would be structural change in your cost structure thinking about the broader Growficiency plan in the next few years. Maybe it's a little too early to look out a few years, but it seems like you're achieving some of your margin targets much earlier than expected. I just wanted to see if there's more upside from here.

Speaker #4: Maybe it's a little too early to look out a few years, but it seems like you're achieving some of your margin targets much earlier than expected.

Speaker #4: So I just wanted to see if there's more upside from here.

Speaker #1: Yeah.

Speaker #2: Maybe. Yeah, go ahead, Guy. Go ahead.

Gui Paiva: Yeah.

Gui Paiva: Maybe I can.

Speaker #1: No, I was just going to highlight one of the things that you're very passionate about, Francisco, which is lean operations and the fact that we do Kaizens, we do Obeyas, and we do efficiency projects on a day-to-day basis.

Francisco Gomes Neto: Yeah, go ahead, Gui. Go ahead.

Gui Paiva: No, I was just going to highlight one of the things that you're very passionate about, Francisco, which is lean operations and the fact that we do Kaizen and we do Obeya, and we do efficiency projects on a day-to-day basis. There's not a silver bullet, Kristine. This is an ongoing effort by thousands of thousands of people that do this on a regular basis. I'll pass it to Francisco because it's one of his most passionate topics. Okay. Thank you. You didn't answer the question. Kristine, it is true what Gui just said. We have seen our executive jets production progressing very well with the production leveling initiatives. This year, we still have some issues to be fixed with a few suppliers that are still delivering parts late, forcing us to move the aircraft late in the line. It's improving.

Speaker #1: It's not that there's a silver bullet, Christine. This is an ongoing effort by thousands and thousands of people who do this on a regular basis.

Speaker #1: But I'll pass it to Francisco, because it's one of his most passionate topics.

Speaker #2: Okay, thank you. But you did answer the question. But Christine, it is true what Gui just said. So we have seen our executive JAS production I mean, progressing very well with the leveling the production leveling initiative.

Francisco Gomes Neto: Okay. Thank you. You didn't answer the question. Kristine, it is true what Gui just said. We have seen our executive jets production progressing very well with the production leveling initiatives. This year, we still have some issues to be fixed with a few suppliers that are still delivering parts late, forcing us to move the aircraft late in the line. It's improving. 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.

Speaker #2: So, this year we still have some issues to be fixed with a few suppliers that are still delivering parts late. I mean, forcing us to, no, to move the aircraft late in the line.

Speaker #2: But it's improving. It's improving. So we expect that in 2027, we'll see much better performance in terms of production leveling, which will help us achieve higher productivity and higher efficiency on our lines.

Francisco Gomes Neto: 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.

Speaker #4: Great. Thank you very much.

Speaker #2: Thank you.

Kristine Liwag: Great. Thank you very much.

Speaker #3: The next question comes from Marcelo Motta with JP Morgan. Please go ahead.

Felipe Santana Santiago de Lima: Thank you.

Operator: The next question comes from Marcelo Motta with JPMorgan. Please go ahead.

Speaker #1: Hi, everyone. Thanks for taking my question. I would like to hear more about this $4 million improvement in business outlook that you mentioned as one of the reasons to improve the adjusted EBIT margin guidance.

Marcelo Motta: Hi, everyone. Thanks for taking my question. I would like to hear more about this $4 million improvement in business outlook that you mentioned as one of the reasons to improve the adjusted EBIT margin guidance. Just wondering here if this is related to a specific segment, if this is also a cash gain, if it's more on the accounting. Anything that you could comment about the upside and downside risks for this $4 million to be lower or higher, that would be very interesting. Thank you.

Speaker #1: So, just wondering here if this is related to a specific segment, if this is also a cash gain, or if it's more on the accounting side.

Speaker #1: So anything that you could comment about the upsides and downside trees for these four million to be four million dollars to be lower or higher, that would be very interesting.

Speaker #1: Thank you.

Speaker #5: Good morning, Marcelo. Felipe here. Thank you for your question. So, these four million is really connected with what Gui mentioned and Francisco, right? On enterprise efficiency, where we focus in all business units.

Felipe Santana Santiago de Lima: Good morning, Marcelo. Felipe here. Thank you for your question. This $4 million is really connected with what Gui mentioned, and Francisco, right? On enterprise efficiency, where we focus in all business units. This $4 million is spread out among all the business units. Of course, that we see that more on Executive Aviation, mainly because of the production leveling and all the efforts that we're doing. This year is recurring, the way that we see this $4 million improving from all the segments that we have.

Speaker #5: So, these $4 million are spread out among all the business units. Of course, we see that more on Executive Aviation, mainly because of the production leveling and all the efforts that we're doing.

Speaker #5: But here is recurring, the way that we see these $4 million improving from all the segments that we have.

Speaker #1: Thanks. Super clear.

Marcelo Motta: Thanks. Super clear.

Speaker #3: The next question comes from Lucas Marchiori with BTG. Please go ahead.

Operator: The next question comes from Lucas Marquiori with BTG. Please go ahead.

Speaker #6: Thank you. Hey guys, good morning. I just wanted to clarify this. Let's say one of the facts on the Q, of course.

Lucas Marquiori: Thank you. Hey, guys. Morning. I just wanted to clarify this, let's say, one-off effect on the Q, of course. It caught our attention, the tax credits, right? If you could just kind of give us some color on what's the nature of it, and if this was like a cash impact already in the Q, I'm assuming it is, but just to confirm the numbers, right? If you guys can give us at least some more color on what's the nature of it, and if there's any other kind of reversal coming in the second half of the year as well. Thanks for the clarification.

Speaker #6: Because with respect to the tax credits, right? I mean, if you could just kind of give us some color on the nature of them, and if this was like a cash impact already in the quarter—I’m assuming it is, but just to confirm the numbers, right?

Speaker #6: And then, if you guys can give us at least some more color on what's the nature of it, and if there's any other kind of a reversal coming in the second half of the year as well.

Speaker #6: Thanks for the clarification.

Speaker #5: Hey Lucas, good morning. Felipe, sorry.

Speaker #1: No, thank you, Lucas, for your question. Good morning. So, this impact—we have both, right? We have both on cash and also on EBIT, right?

Felipe Santana Santiago de Lima: Hey, Lucas. Good morning. Felipe, start.

Gui Paiva: Hey, Lucas. Good morning. Felipe, start.

Felipe Santana Santiago de Lima: No, thank you, Lucas, for your question. Good morning. This impact, we have both, right? We have both on cash and also on EBIT. Most of it is refund of the tariffs that we impact the company last year in the Q1 and the Q2 of this year. This is what we had done. We still have some pending amount to receive on cash, but everything was already recognized on the EBIT margin of the company. Going forward, we don't going to have any more direct tariffs to the company, but we also going to have indirect tariffs to the company impacting especially service support around $12 million annually basis.

Speaker #1: Most of it is a refund of the tariffs that impacted the company last year in the first quarter and the second quarter of this year.

Speaker #1: So this is what we had done. We still have some pending amount to receive in cash, but everything was already recognized in the EBIT margin of the company.

Speaker #1: And going forward, we are not going to have any more direct tariffs to the company. But we are also going to have indirect tariffs to the company, impacting especially sev-en support.

Speaker #1: Around $12 million on an annual basis.

Speaker #6: Great, that's clear. Thank you, Felipe.

Lucas Marquiori: Great. That's clear. Thank you, Felipe.

Speaker #3: The next question comes from Louis Jafeto with Volve Research. Please go ahead.

Operator: The next question comes from Luis Hafner with Wolfe Research. Please go ahead.

Operator: The next question comes from Luis Perfetto with Wolfe Research. Please go ahead.

Speaker #7: Good morning, guys.

Kristine Liwag: Thanks.

Luis Perfetto: Thanks.

Speaker #1: Good morning, Louis.

Luis Hafner: Hey. Good morning, guys.

Luis Perfetto: Hey. Good morning, guys.

Speaker #7: I think you just actually answered the question I had, whether that $16 million was the tariff refund or not. It seems like it is. So just to be clear, the $12 million that you still have indirect, so you basically expect $6 million in the back half, and that's primarily in services.

Felipe Santana Santiago de Lima: Morning, Luis.

Luis Hafner: I think you just actually answered the question I had, whether that BRL 60 million was the tariff refund or not. Seems like it is. Just to be clear, the BRL 12 million that you still have indirect, basically expect BRL 6 million in the H2 and primarily in services.

Luis Perfetto: I think you just actually answered the question I had, whether that BRL 60 million was the tariff refund or not. Seems like it is. Just to be clear, the BRL 12 million that you still have indirect, basically expect BRL 6 million in the H2 and primarily in services.

Speaker #1: Yeah, that's it totally.

Speaker #7: Okay. And are we done with going through the tariff cost from, sort of, the backlog or from inventory, excuse me?

Felipe Santana Santiago de Lima: Yeah. That's it.

Luis Hafner: Okay. Are we done with going through the tariff cost from the backlog or from inventory, excuse me?

Luis Perfetto: Okay. Are we done with going through the tariff cost from the backlog or from inventory, excuse me?

Speaker #1: Yes, we are.

Speaker #7: Okay. And then maybe just—I know you mentioned the 28 orders—can you expand on any additional pipeline opportunities this year or skyline opportunities?

Felipe Santana Santiago de Lima: Yes, we are.

Luis Hafner: Okay. Then maybe just, I know you mentioned the 28 orders, can you expand on any additional pipeline opportunities this year or skyline opportunities?

Luis Perfetto: Okay. Then maybe just, I know you mentioned the 28 orders, can you expand on any additional pipeline opportunities this year or skyline opportunities?

Speaker #2: Yeah, Luis, Francisco speaking. Thanks for the question. Yes, we are happy with this last announcement we made in Farnborough. We did 28 orders, and yes, we are working on other campaigns.

Francisco Gomes Neto: Yeah. Luis, Francisco speaking. Thanks for the question. Yes, we are happy with this last announcement we did in Farnborough with these 28 orders. Yes, we are working in other campaigns, they still need to do some work to cross the finish line. Yes, we are positive with more sales of our products until the end of the year.

Speaker #2: But they still need to do some work to cross the finish line. But yes, we are positive about having more sales of our products until the end of the year.

Speaker #7: Thank you very much.

Speaker #2: You're very welcome.

Luis Hafner: Thank you very much.

Luis Perfetto: Thank you very much.

Speaker #3: The next question comes from Alberto Valerio with UBS. Please go ahead.

Francisco Gomes Neto: You are welcome.

Operator: The next question comes from Alberto Valerio with UBS. Please go ahead.

Speaker #1: Good morning, Francisco, Felipe, and Guy. Thank you for giving me the opportunity to ask my questions here. I have two on my side. The first one: really strong margins on executive jets.

Alberto Valerio: Good morning, Francisco, Felipe, and Gui. Thank you for giving the opportunity to do my questions here. I have two on my side. The first one, really strong margins on executive jets. You mentioned the Kaizen model of Embraer and so forth. Can we consider that it is any different mix for this quarter for looking forward? We used to have 12% margins on business jets coming ex tariffs at 16%. Should we consider for the future something between, or you think it's more tied to the 16%? My second one on backlog. I think you guys are very comfortable for the guidance of long term on 2030 for the commercial with 1.6, if I'm not mistake. Times what we have the book-to-bill of this year, with more than two times, 2.6, the defense, and 1.1 for the business jets.

Speaker #1: You mentioned the Kaizen model of Embraer, and so forth. But can you reconsider if there is any different mix for this quarter, looking forward?

Speaker #1: We used to have 12% margins on business jets coming ex-tariffs at 16%. Should we consider for the future something in between, or do you think it’s more towards the 16%?

Speaker #1: And my second one, on backlog, I think you guys are very comfortable with the guidance for the long-term, or 2030, for the commercial, with $1.6, if I'm not mistaken.

Speaker #1: Time is what we have the book to view of this year, with more than two times: 2.6 for Defense and 1.1 for the business jets.

Alberto Valerio: Times what we have the book-to-bill of this year, with more than two times, 2.6, the defense, and 1.1 for the business jets. The business jet, it's one that I'm talking about to see if you guys are comfortable with the long term. It's the only one that the book-to-bill a little bit below the long-term goals. Thank you very much.

Speaker #1: The business jet—it's the one that I'm talking about to see if you guys are comfortable with the long-term. It's the only one in the book to view. It's a little bit below the long-term goals.

Alberto Valerio: The business jet, it's one that I'm talking about to see if you guys are comfortable with the long term. It's the only one that the book-to-bill a little bit below the long-term goals. Thank you very much.

Speaker #1: Thank you very much.

Speaker #5: Well, Alberto, good morning, and thanks for the question. On executive aviation, I guess we continue to see further improvement in our operations, despite having a product and client mix which has provided a little bit of headwind.

Gui Paiva: Hi, Alberto. Good morning, and thanks for the question. On executive aviation, I guess we continue to see a gradual improvement in our operations despite having a product and client mix, which has provided a little bit of headwinds. That is just a testament to the efficiency gains that the company has been able to generate, to offset the slight headwinds that I alluded to. When you look through the rest of the company, we continue to be really optimistic. We have seen defense margins continue to improve on a steady basis, and you obviously saw the order that we were able to obtain from the UAE in Q2, and we do expect the success of the KC platform to continue in the next few years. We have continued to expand the backlog in services also, which provide us with a steady stream of value for the company.

Speaker #5: And that is just a testament to the efficiency gains that the company has been able to generate to offset these slight headwinds that I alluded to.

Speaker #5: When you look through the rest of the company, we continue to be really optimistic. We have seen defense margins continue to improve on a steady basis, and you obviously saw the order that we were able to obtain from the UAE in Q2.

Speaker #5: And we do expect the success of the KC platform to continue in the next few years. We have continued to expand the backlog in services also, which provides us with a steady stream of value for the company.

Speaker #5: And we have continued to work, and we should continue to see improvements in the second half, and most importantly in the next few years, for the profitability that we have in our commercial aviation as well.

Gui Paiva: We have continued to work, and we should continue to see improvements in H2 and most importantly in the next few years, for the profitability that we have in our commercial aviation as well. Right now, with a record backlog for the company, we are able to produce at target levels that we have for 2030, which is going to be our capacity. We remain very upbeat about the outlook for the company in the next few years.

Speaker #5: Right now, we have a record backlog for the company. We are able to produce at the target levels that we have for 2030, which is going to be our capacity.

Speaker #5: So, we remain very upbeat about the outlook for the company over the next few years.

Speaker #1: Fantastic. Very clear, Guy. Congrats on the result.

Alberto Valerio: Fantastic. Very clear, Gui. Congrats on the results.

Speaker #3: The next question is from Lucas Barbosa with Santander. Please go ahead.

Operator: The next question is from Lucas Barbosa with Santander. Please go ahead.

Speaker #1: Good morning, Francisco, Felipe, and Guy. Congratulations on the result, and thanks for taking my question. My question is on commercial aviation. This quarter, the margins saw a slight drop due to client mix.

Lucas Barbosa: Good morning, Francisco, Felipe, and Gui. Congratulations on the results, and thanks for taking my question. My question is on commercial aviation. This quarter, the margin saw a slight drop due to client mix. I wanted to understand what are the expectations in terms of customer mix and margins for H2 2026 or 2026 as a whole. In other words, could we see a year-over-year expansion in margins for H2 or for 2026 as a whole? Or should we see this drop that we saw in Q2 persisting throughout the year? Thank you very much.

Speaker #1: I wanted to understand what the expectations are in terms of customer mix and margins for the second half of 2026, or for 2026 as a whole.

Speaker #1: In other words, could we see a year-over-year expansion in margins for the second half, or for 2026 as a whole? Or should we expect that the drop we saw in the second quarter will persist throughout the year?

Speaker #1: Thank you very much.

Speaker #5: Thank you, Lucas, for your question. Felipe here. When we look at the result for the second quarter of commercial aviation, as we mentioned, we had an impact from customer mix, driven by legacy contracts.

Gui Paiva: Thank you, Lucas, for your question. Felipe here. When we look right to the result of Q2 Commercial Aviation, as we mentioned, we had an impact of customer mix and driven by legacy contracts. When you look for the full year of Commercial Aviation, should be in line from what it was last year. Right? We are going to see some improvements going forward on EBIT and also customer mix on Commercial Aviation.

Felipe Santana Santiago de Lima: Thank you, Lucas, for your question. Felipe here. When we look right to the result of Q2 Commercial Aviation, as we mentioned, we had an impact of customer mix and driven by legacy contracts. When you look for the full year of Commercial Aviation, should be in line from what it was last year. Right? We are going to see some improvements going forward on EBIT and also customer mix on Commercial Aviation.

Speaker #5: When you look right for the full year of commercial aviation, it should be in line with what it was last year, right? So we're going to see some improvements going forward on EBIT and also customer mix on commercial aviation.

Speaker #1: Perfect. Super clear. Thank you very much.

Lucas Barbosa: Perfect. Super clear. Thank you very much.

Speaker #3: The next question comes from Lucas Lucky with XP. Please go ahead.

Operator: The next question comes from Lucas Laghi with XP. Please go ahead.

Speaker #6: Hi everyone, good morning. I have a follow-up question on profitability. I mean, we saw this very strong performance in exactly— but also in services.

Lucas Laghi: Hi, everyone. Good morning. I have a follow-up question on profitability, but we saw this very strong performance on Executive Aviation, but also in Services & Support. Almost 18% of recurring EBIT margin on the Services & Support division. My question is, how to think of the structurally levels for Services & Support going forward? I guess that this performance was slightly above what we saw as a reference according to our conversations with market participants. When it is interesting that gross margin decline and EBIT margin increased, so not sure about the effects of operating leverage that you still have to capture going forward. If you could also comment on the nature and the profile of the revenues this quarter, thinking of these different components that you have in Services & Support and how to think of this going forward.

Speaker #6: I mean, almost 18% of recurring EBIT margin on the Services division. My question is, how should we think about the structural levels for Services going forward?

Speaker #6: I guess that this performance was slightly above what we saw as a reference, according to our conversations with market participants. So, it's interesting that gross margin declined and EBIT margin increased, so not sure about the effect of operating leverage that you still have to capture going forward.

Speaker #6: I mean, you could also comment on the nature and the profile of the revenues this quarter, thinking of these different components that you have in services, and how to think of this going forward—if you should see some more upside or downside, considering these 18% return levels that you saw in the second part going forward.

Lucas Laghi: If you could also comment on the nature and the profile of the revenues this quarter, thinking of these different components that you have in Services & Support and how to think of this going forward. If you should see some more upside or downside considering this 18% return levels that you saw in tech part going forward. Thank you very much.

Lucas Laghi: If you should see some more upside or downside considering this 18% return levels that you saw in tech part going forward. Thank you very much.

Speaker #6: Thank you very much.

Speaker #5: Felipe here. Thank you for your question. Right. As we've mentioned, we do not just focus on efficiency for the business using that aircraft, but also on certain areas of support.

Felipe Santana Santiago de Lima: Felipe here. Thank you for your question. As we mentioned, we do not just do efficiency on the business unit on aircraft, but also on certain support. When we look to the 17% Almost 18% of margin on service and support on Q2, really believe that should be the way that we could do for the next quarters, right? Especially mainly because of the scale that we have and also all these new deals that we've been signing on pool agreements and everything with the customers on Commercial Aviation and also on Defense and Executive Jets, is also helping us to see better margins going forward on service and support.

Speaker #5: So, when we look to the 17%, almost 18% margin on certain support in the second quarter, we really believe that should be the way that we could do for the next quarters, right?

Felipe Santana Santiago de Lima: Almost 18% of margin on service and support on Q2, really believe that should be the way that we could do for the next quarters, right? Especially mainly because of the scale that we have and also all these new deals that we've been signing on pool agreements and everything with the customers on Commercial Aviation and also on Defense and Executive Jets, is also helping us to see better margins going forward on service and support.

Speaker #5: Especially, mainly because of the scale that we have, and also all these new deals that we've been signing on pool agreements and everything with the customers on commercial aviation, and also on defense and executives, is also helping us to see better margins going forward on certain support.

Speaker #6: And of course, we do have Osimhan, right, as well. That is also improving, especially on the DTF engines. So, also for the upcoming years, we're going to see better margins coming also from Osimhan.

Francisco Gomes Neto: And-

Felipe Santana Santiago de Lima: Of course, we do have OGMA, right, as well, that is also improving, especially on the GTF engines. Also for the coming years, we're going to see better margins coming also from OGMA.

Speaker #7: And Philippe, if you allow me to complement your explanation, we have been pushing for efficiency gains in the entire organization. I mean, to make sure that we have the right cost structure.

Francisco Gomes Neto: Felipe, if you allow me to complement your explanation. We have been pushing for efficiency gains in the entire organization. We need to make sure that we have the right cost structure, the right expenditure, to support the business, the right level of investment, and productivity gains, continuous productivity gains. This is for us to enjoy the growth we are planning for the future, improving more than proportionally the profitability. That's why we are doing this very strongly in the entire organization, we should see the profitability growing more than the revenues in the coming years.

Speaker #7: The right expenditure to support the business, the right level of investment, and productivity gains—continuous productivity gains. So, this is for us to enjoy the growth we are planning for the future, improving, more than proportional, the profitability.

Speaker #7: So that's why we are doing this very strongly across the entire organization. Then we should see profitability growing faster than revenues in the coming years.

Speaker #1: Perfect. Thank you very much, Francisco and Felipe. Have a great day.

Speaker #7: You too. Thank you.

Lucas Laghi: Perfect. Thank you very much, Francisco and Felipe. Have a great day.

Francisco Gomes Neto: You too. Thank you.

Speaker #3: The next question comes from Ron Epstein with Bank of America. Please go ahead, sir.

Operator: The next question comes from Ron Epstein with Bank of America. Please go ahead, sir.

Speaker #1: Yeah. Hey, good morning, guys. Can you speak about your investment in. How are you thinking about that? Is that something that should be 100% part of EMBRAER, or is that something that should be cut loose?

Ron Epstein: Yeah. Hey, good morning, guys. Can you speak about your investment in Eve? How are you thinking about that? Is that something that should be 100% part of Embraer, or is that something that should be cut loose? When you think about the engineering cost of that, should those engineers be deployed on something else? It seems like you're halfway in, halfway out. How are you thinking about that?

Speaker #1: When you think about the engineering cost of that, should those engineers be deployed on something else? Or, it sort of seems like you're halfway in, halfway out.

Speaker #1: How are you thinking about that?

Speaker #7: Hi, Ron, Francisco, here. Thank you very much for your question. I mean, we are very confident about the EVIS contribution to the EMBRAER growth, especially beyond the 2029, 2030, to complement our growth strategy.

Francisco Gomes Neto: Hi, Ron, Francisco here. Thank you very much for your question. We are very confident about the Eve's contribution to the Embraer growth, especially now beyond 2029, 2030, to complement our growth strategy at the beginning of the next decade. We had more than 60 flights, vertical flights. We completed recently our first partial transition to horizontal flight. We have, yes, hundreds of engineers supporting Eve, but we expect to certify an entry into service of the Eve tools by the end of 2028. In parallel, we are working to improve current products, and also supporting new sales of our KC-390. New sales mean new configurations that requires a lot of engineering support. Also investing new technologies to support a new cycle of products. As I had mentioned, we continue evaluating emerging technologies and product opportunities to support a longer-term growth strategy.

Speaker #7: At the beginning of the next decade. We are now— we had more than 60 vertical flights. We have also recently completed our first partial transition to horizontal flight.

Speaker #7: So we have, yes, hundreds of engineers supporting if, but we expect to certify entry into service of the EV tools by the end of 2028.

Speaker #7: But in parallel, we are working to improve current products and also supporting new sales of a KC390. So new sales mean new configurations that requires a lot of engineering support.

Speaker #7: And also investing new technologies to support a new cycle of products. And as I have mentioned, we continue evaluating emerging technologies and product opportunities to support a long-term growth strategy.

Francisco Gomes Neto: New sales mean new configurations that requires a lot of engineering support. Also investing new technologies to support a new cycle of products. As I had mentioned, we continue evaluating emerging technologies and product opportunities to support a longer-term growth strategy. This can be commercial aviation, executive aviation, or even defense.

Speaker #7: This can be commercial aviation executive aviation, or even defense.

Francisco Gomes Neto: This can be commercial aviation, executive aviation, or even defense.

Speaker #1: Got it, got it. And then, have you seen any impact—and forgive me if you already answered this; I might have missed it—any impact on sales campaigns from what's been going on in the Middle East?

Ron Epstein: Got it. Have you seen any impact, and forgive me if I already answered this, I might have missed it, any impact on sales campaigns from what's been going on in the Middle East?

Speaker #7: Well, I mean, in defense, yes. Because of the geopolitical situation, we have seen countries accelerating sales campaigns. So you saw the recent announcement after the UAE, who announced, and then Colombia recently.

Francisco Gomes Neto: Well, in defense, yes. Because of the geopolitical situation, we have seen countries accelerating sales campaigns. You saw the recent announcement, after the UAE, we announced Colombia recently. You saw Greece also mentioning a potential deal through Portugal of KC-390, and we are working on other campaigns as well that I cannot disclose at this point of time. Yes, Ron, the geopolitical situation is helping the defense business. I think not only for us, for the market, but yes, Embraer is benefiting because we have a great product that transport the military aircraft segments.

Speaker #7: I mean, you saw the Greece also mentioning a potential deal through Portugal of KC390. And we are working on other campaigns as well that I cannot disclose at this point of time.

Speaker #7: So yes, Ron, the geopolitical situation is helping the defense business. I think not only for us, for the market, but yes, EMBRAER is benefiting because we have a great product that's a transport military aircraft.

Speaker #7: Segments.

Speaker #1: And how about on the commercial side? What’s the impact been?

Speaker #7: Well, commercially, actually, I mean, what we think is that the air transportation industry has been extremely resilient, despite the higher costs of air tickets.

Ron Epstein: How about on the commercial side, what's the impact been?

Francisco Gomes Neto: Well, commercial, actually, what we see is that the air transportation industry has been extremely resilient despite the higher costs of the tickets. People are still flying, this creates an increasing demand in the market for new planes. Ron, as there is a huge backlog for bigger aircraft, now the customers, the airlines, they have to wait many years to receive a new aircraft. Combining with a better understanding of the benefits of the small narrow body to their fleets, we see a lot of opportunities for our E2s with the new orders in the future. Last year was great. This year also, we are doing very well, we are still working a lot of new campaigns for the E2s as well. I think all this environment has been beneficial for Embraer.

Speaker #7: So people are still flying, and this creates an increasing demand in the market for new planes. And Ron, as there is a huge backlog for bigger aircraft, now the customers, the airlines, have to wait many years to receive a new aircraft.

Speaker #7: Combining this with a better understanding of the benefits of the small narrow-body to their fleets, we see a lot of opportunities for our ETOs, with new orders in the future.

Francisco Gomes Neto: Combining with a better understanding of the benefits of the small narrow body to their fleets, we see a lot of opportunities for our E2s with the new orders in the future. Last year was great. This year also, we are doing very well, we are still working a lot of new campaigns for the E2s as well. I think all this environment has been beneficial for Embraer. For defense, for commercial jets, we keep selling jets as well. Yeah, we are in a good moment I would say.

Speaker #7: So last year was great. This year, also, we are doing very well. And we are working—and still working—on a lot of new campaigns for the ETOs as well.

Speaker #7: I think it's the how this environment has been beneficial for EMBRAER. I mean, for defense, for commercial jets, and we keep selling jets as well.

Francisco Gomes Neto: For defense, for commercial jets, we keep selling jets as well. Yeah, we are in a good moment I would say.

Speaker #7: So yeah, we are in a good momentum, I would say.

Speaker #1: Got it. Great. Thank you very much.

Speaker #7: You are very welcome, Ron.

Ron Epstein: Got it. Great. Thank you very much.

Speaker #3: The next question comes from Danielle Gasparecci with Itaú BBA. Please go ahead.

Francisco Gomes Neto: You are very welcome, Ron.

Operator: The next question comes from Daniel Gasparete with Itaú BBA. Please go ahead.

Speaker #1: Good morning, guys. Thank you very much for the opportunity, and congrats on the results. My first question is regarding whether you could provide us with an update on India, both on commercial and defense aviation.

Daniel Gasparete: Good morning, guys. Thank you very much for the opportunity, congrats on the results. The first question, please, would be regarding if you could provide us with an update on India, both on commercial and defense aviation. That'll be great. Thank you very much. The second question will be a follow-up on the previous question. When do you guys feel that Eve is going to be de-risked, I would say, operationally? Do you feel like it's going to be only after the total certification by the end of 2028? Or do you feel that when you have enough flights or you are comfortable enough with the envelope of tests, that could be a threshold of comfort, please? Just one confirmation, Francisco, you said about a new venture, you said about commercial and executive aviation, as we have discussed in the past.

Speaker #1: That would be great. Thank you very much. And the second question will be a follow-up on the previous question. When do you guys feel that EVE is going to be de-risked?

Speaker #1: I would say operationally. Do you feel like it's going to be only after the total certification by the end of 2028, or do you feel that when you have enough flights or you have a comfortable enough with the envelope of tests, that could be a threshold of comfort, please?

Daniel Gasparete: Or do you feel that when you have enough flights or you are comfortable enough with the envelope of tests, that could be a threshold of comfort, please? Just one confirmation, Francisco, you said about a new venture, you said about commercial and executive aviation, as we have discussed in the past. You mentioned Defense, if I'm not mistaken. Just to clarify that, please. Thank you very much. That will be all.

Speaker #1: And just one confirmation, Francisco, you said about a new venture. You said about commercial and executive aviation as we have discussed in the past, but you mentioned defense, if I'm not mistaken.

Speaker #1: Just to clarify that, please. Thank you very much. That would be all.

Daniel Gasparete: You mentioned Defense, if I'm not mistaken. Just to clarify that, please. Thank you very much. That will be all.

Speaker #7: All right, Danielle. Thanks for your question. Let's try to share this in parts. So, Guy, maybe you start, then you can direct it to me.

Francisco Gomes Neto: All right, Daniel, thanks for your question. Let's try to share this in parts. Gui, maybe you start, then you address to me.

Speaker #1: Sure. I guess. Good morning, Gasparecci. Thanks for the question. So let me tackle the EVE question and Francisco can complement on India. On EVE, I think the project will be de-risked when we kind of achieve the major milestones that we have in the project.

Gui Paiva: Sure. Good morning, Gasparetti, and thanks for the question. Let me tackle the Eve question, and Francisco can complement on India. On Eve, I think the project will be de-risk when we kind of achieve the major milestones that we have in the project. That would include at least a full transition flight and a reversal to landing. As we progress in the campaign through the rest of the year and into early 2027, we do expect this material progress to play out. Francisco?

Gui Paiva: Sure. Good morning, Gasparete, and thanks for the question. Let me tackle the Eve question, and Francisco can complement on India. On Eve, I think the project will be de-risk when we kind of achieve the major milestones that we have in the project. That would include at least a full transition flight and a reversal to landing. As we progress in the campaign through the rest of the year and into early 2027, we do expect this material progress to play out. Francisco?

Speaker #1: So that would include at least a full transition flight and reversal to landing. But as we progress in the campaign through the rest of the year, and into early '27, we do expect this material progress to play out.

Speaker #1: Francisco?

Speaker #7: Yeah, Danielle, thanks for the question. About India. In India, we have two fronts of opportunities—well, good opportunities. The first one is in defense with the MTA, Medium Transport Aircraft. That is an opportunity for between 60 to 80 KC-390s.

Francisco Gomes Neto: Yeah. Daniel, thanks for the question. About India. In India, we have two fronts of opportunities. By the way, good opportunities. The first one in Defense with the MTA, Medium Transport Aircraft. That is an opportunity between 60 to 80 KC-390s. We believe we have the best product for that application, but it's a bid. We have signed an MOU with Mahindra, our partner, and we are just waiting for the customer, the Indian Air Force, to issue the RFP for us to present our proposal with a localization strategy. In parallel, we have been working in the civil aviation as well, with an opportunity to introduce our E-Jets E1s and E2s to help India to improve their connectivity between smaller cities and taking advantage of the Make in India initiative.

Speaker #7: We believe we have the best product for that application, but it's a bit. So we have signed an MOU with Mahindra, our partner, and we are just waiting for the customer, the India Air Force, to issue the RFP for us to present our proposal with a localization strategy.

Speaker #7: In parallel, we have been working in civil aviation as well, with an opportunity to introduce our E-Jets, E1s, and E2s to help India improve connectivity between smaller cities and take advantage of the Make in India initiative.

Francisco Gomes Neto: In parallel, we have been working in the civil aviation as well, with an opportunity to introduce our E-Jets E1s and E2s to help India to improve their connectivity between smaller cities and taking advantage of the Make in India initiative. In that sense, we have signed an MOU with the Adani Group, and we are in close conversation with them to find the best way to explore that opportunity. Both are great opportunity for us, for Embraer, to grow and expand our production capabilities outside Brazil.

Speaker #7: So, in that sense, we have signed an MOU with the Adani Group, and we are in close conversation with them to find the best way to explore that opportunity.

Francisco Gomes Neto: In that sense, we have signed an MOU with the Adani Group, and we are in close conversation with them to find the best way to explore that opportunity. Both are great opportunity for us, for Embraer, to grow and expand our production capabilities outside Brazil.

Speaker #7: But both are great opportunities for us for EMBRAER to grow and expand our production capabilities outside Brazil.

Speaker #1: Thank you, Francisco. Thank you, Guy. And just one follow-up on the question that I made. On the previous answer that you gave, you mentioned looking at new ventures.

Daniel Gasparete: Thank you, Francisco. Thank you, Gui. Just one follow-up on the question that I made. On the previous answer that you gave, you mentioned about looking about new ventures. You mentioned commercial and executive aviation, as we have always been discussing, but you also mentioned defense. I would just like to clarify that, if I understood that correctly, that will be something that you're going to be considering as well? Or it'll be only on commercial and executive aviation, please?

Speaker #1: You mentioned a commercial and executive aviation industry have always been discussing, but you also mentioned defense. I would just like to clarify that if I understood that correctly.

Speaker #1: Would that be something you are considering as well, or would it be only for commercial and executive aviation, please?

Speaker #7: Well, in Defense, we have two main products, right? The KC-390 and the Super Tucano. We recently announced an upgrade in the Super Tucano with a new cockpit and new features to detect and eliminate drones, and we expect that will help us to increase the sales of the Super Tucano as well.

Francisco Gomes Neto: Well, in defense, we have two main products, right? The KC-390 and the Super Tucano. We recently announced an upgrade in the Super Tucano with a new cockpit and new features to detect and eliminate drones. We expect that will help us to increase sales of Super Tucano as well.

Speaker #1: Okay, great. Thank you very much.

Speaker #7: You are welcome, Danielle.

Daniel Gasparete: Okay, great. Thank you very much.

Speaker #3: The next question comes from André Maslini with Citi. Please go ahead.

Francisco Gomes Neto: You are welcome, Daniel.

Operator: The next question comes from Andre Mazini with Citi. Please go ahead.

Speaker #1: Yes. Hi, Francisco, Felipe, Guy, and Thais. Thanks for the question. So we see a couple of large airlines bringing engine MRO in-house. This year, there was news of Ryanair announcing they would do this, bring it in-house.

Andre Mazini: Yes. Hi Francisco, Felipe, Gui, and Thais. Thanks for the question. We see a couple of large airlines bringing engine MRO in-house this year. There was news of Ryanair announcing they would do this, bring it in-house. Do you think this may be a trend for E-Jet operators as well? This will probably be contained to larger jets and very large fleets, right? 600 737s in the case of this particular airline. Thank you. Thank you so much.

Speaker #1: Do you think this may be a trend for E-Jet operators as well, or will this probably be contained to larger jets and very large fleets? Right, 600, 737s in the case of this particular airline?

Speaker #1: Thank you. Thank you so much.

Speaker #7: Thank you, André. Good question. That's my opinion. I think this makes sense only for large volumes, right? So airlines that operate sizable fleets, that this may make sense.

Francisco Gomes Neto: Thank you, Andre. Good question. That's my opinion. I think this makes sense only for large volumes, right? Airlines that operate sizable fleets, that this maybe makes sense because the investments are huge, and also the main purpose of the airline should be flying, right? Anyway, maybe with big fleets, this makes sense, and we don't see this as a trend for other markets.

Speaker #7: Because the investments are huge. And also, I mean, the main purpose of the airline should be to fly, right? But anyway, maybe with big fleets, this makes sense. We don't see this as a trend for the market.

Speaker #1: Great, Francisco. And if I may, a quick follow-up. If you could remind us of the breakdown in the service revenue between Embraer airplanes and other OEMs' airplanes. We understand OGMA, for instance, also services larger narrowbodies.

Andre Mazini: Great, Francisco. If I may, a quick follow-up, if you could remind us the breakdown in the service revenue between Embraer airplanes and other OEMs airplanes. We understand OGMA, for instance, they also do larger narrow bodies. I would imagine, of course, the bulk of it is Embraer, but what's the share currently between Embraer and non-Embraer in the service revenue? Thank you so much.

Speaker #1: I would imagine, of course, the bulk of it is Embraer, but what's the share currently between Embraer and non-Embraer in the service revenue? Thank you so much.

Speaker #8: Hi, good morning. So, in terms of our service division, OGMA should be running something close to $350 to $400 million of revenues this year.

Gui Paiva: Hi. Good morning. In terms of our service division, OGMA should be running something close to BRL 350 to BRL 400 million of revenues this year. The bulk of that is going to be non-Embraer fleets. That is the agnostic part of the business, and the balance of that, which should be about BRL 1.5 billion, BRL 1.6 billion, will be our Embraer or fleet-related business.

Speaker #8: And the bulk of that is going to be non-Embraer fleets. And that is the agnostic part of the business. The balance of that, which should be about $1.5 to $1.6 billion, will be our Embraer or fleet-related business.

Speaker #1: Super interesting. Thank you, Francisco and Guy.

Andre Mazini: Super interesting. Thank you, Francisco Gomes Neto.

Speaker #3: Thank you, ladies and gentlemen. Now we will start the Q&A session dedicated to the press. First, we'll answer questions in English, and then we'll be answering questions in Portuguese.

Operator: Thank you, ladies and gentlemen. We will start the Q&A session dedicated to the press. First, we will answer questions in English, then we will be answering questions in Portuguese. We will also answer questions sent via the platform chat. Please hold while we compile the questions. The first question comes from Ioannis Rekas with flight.com.gr. Please go ahead.

Speaker #3: We will also answer questions sent via the platform chat. Please hold while we compile the questions. The first question comes from Ioannis Vrakas with flight.com.gr.

Speaker #3: Please go ahead.

Speaker #7: Good afternoon from Greece. Can you hear me? Yeah, yes, we can. Go ahead. Great, great. I would like to congratulate you, first of all, for this exceptional results.

Ioannis Rekas: Good afternoon from Greece. Can you hear me?

Ioannis Rekkas: Good afternoon from Greece. Can you hear me?

Gui Paiva: Yeah. Yes, we can. Go ahead.

Francisco Gomes Neto: Yeah. Yes, we can. Go ahead.

Ioannis Rekas: Great. I would like to congratulate you, first of all, for these exceptional results. My question has, of course, to do with the potential of Greece's requirement for C-390. It is a program that was passed from the parliament, we're expecting a cost of 600 million euros. I would like if you can share with us some more updates regarding that. The comment, of course, in the difference of the cost between Colombia's and Greece's program per unit. Thank you very much.

Ioannis Rekkas: Great. I would like to congratulate you, first of all, for these exceptional results. My question has, of course, to do with the potential of Greece's requirement for C-390. It is a program that was passed from the parliament, we're expecting a cost of 600 million euros. I would like if you can share with us some more updates regarding that. The comment, of course, in the difference of the cost between Colombia's and Greece's program per unit. Thank you very much.

Speaker #7: And my question has, of course, to do with the potential of Greece's acquisition of three C-390s. It is a program that was passed by the Parliament, and we're expecting a cost of €600 million.

Speaker #7: So I would like if you can share with us some more updates regarding that. And the comment, of course, in the different of the cost between Colombia's and Greece's program.

Speaker #7: Per unit. Thank you very much. Oh, thank you for your question. This opportunity is being discussed between Greece and Portugal. That's why there is an opportunity for short deliveries to Greece.

Gui Paiva: Thank you for your question. This opportunity is being discussed between Greece and Portugal. That's why there is an opportunity for short deliveries to Greece. We don't know the details about commercial conditions. We can't disclose your price because every aircraft is different, every aircraft has a different specification, and this means different costs for each program.

Francisco Gomes Neto: Thank you for your question. This opportunity is being discussed between Greece and Portugal. That's why there is an opportunity for short deliveries to Greece. We don't know the details about commercial conditions. We can't disclose your price because every aircraft is different, every aircraft has a different specification, and this means different costs for each program.

Speaker #7: We cannot disclose your we don't know the details about commercial conditions, and we can't disclose your, I mean, price because every aircraft is different.

Speaker #7: Every aircraft has a different specification. And this means different costs for each program.

Speaker #1: Great. Thank you very much. Thank you very much.

Speaker #7: You are welcome.

Ioannis Rekas: Great. Thank you very much.

Ioannis Rekkas: Great. Thank you very much.

Speaker #3: Once again, if you would like to ask a question, please click raise hand at this time. Ladies and gentlemen, please hold while we compile the questions.

Gui Paiva: You are welcome.

Francisco Gomes Neto: You are welcome.

Operator: Once again, if you would like to ask a question, please click raise hand at this time. Ladies and gentlemen, please hold while we compile the questions. The next question comes from Edgardo Jimenez from Aviacionline. Please go ahead. Mr. Jimenez, your mic is Sir?

Operator: Once again, if you would like to ask a question, please click raise hand at this time. Ladies and gentlemen, please hold while we compile the questions. The next question comes from Edgardo Gimenez from Aviacionline. Please go ahead. Mr. Jimenez, your mic is Sir?

Speaker #3: The next question comes from Edgardo Jimenez from Aviation Line. Please go ahead. Mr. Jimenez, your mic is on, sir?

Speaker #7: Hi. Can you hear me now? Yes?

Speaker #3: Yes.

Speaker #7: Oh, thank you. Yes, we can. Go ahead. No, my question was, with respect to each orders from LATAM and ABRA Group, do you see the issue family as a potential good fit for low-cost carriers in the region, such as JetMar, Volaris, or Viva?

Edgardo Jimenez: Hi. Can you hear me now? Yes?

Edgardo Gimenez Mazó: Hi. Can you hear me now? Yes?

Operator: Yes.

Edgardo Jimenez: Oh, thank you.

Edgardo Gimenez Mazó: Oh, thank you.

Gui Paiva: Yes, we can. Go ahead.

Francisco Gomes Neto: Yes, we can. Go ahead.

Edgardo Jimenez: Sorry. No, my question was, with recent E2 orders from LATAM and Abra Group, do you see the E2 family as a potential good fit for low-cost carriers in the region, such as JetSMART, Volaris, or Viva? Have you actually actively pitched business cases to these kind of low-cost carriers in Latin America?

Edgardo Gimenez Mazó: Sorry. No, my question was, with recent E2 orders from LATAM and Abra Group, do you see the E2 family as a potential good fit for low-cost carriers in the region, such as JetSMART, Volaris, or Viva? Have you actually actively pitched business cases to these kind of low-cost carriers in Latin America?

Speaker #7: Have you actually actively pitched business cases to these kinds of low-cost carriers in Latin America? Yeah, Eduardo, thanks for the question. Absolutely. We see the E2, I mean, as a perfect fit for this kind of application.

Gui Paiva: Well, thanks for the question. Absolutely. We see the E2 as a perfect fit for this kind of application. We see now Azul doing very well in Brazil. Now coming LATAM. The Abra Group, we don't know yet where they will fly the E2s. The idea is the same, to improve connectivity between smaller cities. Mexico is another opportunity. Avianca, of course, in Colombia, under the Abra Group. Mexico for sure. We have, I think over 60 Embraer E1s flying Mexico with different Aeroméxico and other lines. Now Mexicana introducing the E2s with a success operation. Yes, we hope the other lines will look at the E2 as well as an opportunity to complement the operation for large and narrow-body in a very efficient way.

Francisco Gomes Neto: Well, thanks for the question. Absolutely. We see the E2 as a perfect fit for this kind of application. We see now Azul doing very well in Brazil. Now coming LATAM. The Abra Group, we don't know yet where they will fly the E2s. The idea is the same, to improve connectivity between smaller cities. Mexico is another opportunity. Avianca, of course, in Colombia, under the Abra Group. Mexico for sure. We have, I think over 60 Embraer E1s flying Mexico with different Aeroméxico and other lines. Now Mexicana introducing the E2s with a success operation. Yes, we hope the other lines will look at the E2 as well as an opportunity to complement the operation for large and narrow-body in a very efficient way.

Speaker #7: We see now, you know, Azul is doing very well in Brazil. Now, coming to LATAM, the ABRA Group—we don't know yet where they will fly the E2s.

Speaker #7: But the idea is the same—to improve connectivity between smaller cities. And Mexico is another opportunity. So Avianca, of course, in Colombia, under the ABRA Group.

Speaker #7: But Mexico, for sure. We have, I mean, I think over 60 Embraer E1s flying in Mexico with different airlines, Aeroméxico and others. Now Mexicana is introducing the E2s.

Speaker #7: With the successful operation and the yes, we hope the other lines will look at the E2 as well as an opportunity to complement the larger operation for larger narrow body in a very efficient way.

Speaker #1: Thank you very much.

Speaker #3: Ladies and gentlemen, once again, if you would like to pose a question, please click 'raise hand' at this time. Please hold while we compile the questions.

Edgardo Jimenez: Thank you very much.

Edgardo Gimenez Mazó: Thank you very much.

Operator: Ladies and gentlemen, once again, if you would like to pose a question, please click raise hand at this time. Please hold while we compile the questions.

Operator: Ladies and gentlemen, once again, if you would like to pose a question, please click raise hand at this time. Please hold while we compile the questions. The next question was sent from the chat and is from Robert Wall with Aviation Week. On C-390 rates, given the recent orders and what you were seeing in potential opportunities, what is your thinking to go higher than 10 aircraft per year in 2030?

Speaker #3: The next question was sent from the chat, and it's from Robert Wall with Aviation Week. On C390 rates, given the recent orders and what you are seeing and potential opportunities, what is your thinking on going higher than 10 aircraft per year in 2030?

Operator 2: The next question was sent from the chat and is from Robert Wall with Aviation Week. On C-390 rates, given the recent orders and what you were seeing in potential opportunities, what is your thinking to go higher than 10 aircraft per year in 2030?

Speaker #7: Well, I mean, an opportunity we have, we are working on is with India. And this will allow us to implement a second assembly line outside Brazil.

Francisco Gomes Neto: An opportunity we are working on is with India. This will allow us to implement a second assembling line outside Brazil and go to production levels above 10 per year. Another opportunity we are working on is with the United States, that will also allow us, if things go well, and depending on the size of the order, to implement a third assembling line that will allow us to increase even further the production of KC-390. I believe that Bosco, our VP of Defense, is with us. Bosco, do you want to add anything on this? I think he's not here yet. Okay, that's it.

Speaker #7: And go to production levels above 10 per year. And another opportunity we are working on is with the United States. That will also allow us, if things go well, and depending on the size of the order, to implement a third assembly line that will allow us to increase even further the production of KC390.

Speaker #7: But I believe both of our VP of Defense is with us. Bosco, do you want to add anything on that? I think he's not here yet.

Speaker #7: Okay. That's it.

Speaker #3: Thank you very much, sir. This concludes the question and answer session in English for the press. The question and answer session will now be conducted in Portuguese.

Operator 2: Thank you very much, sir. This concludes the question and answer session in English for the press. This question and answer session is now being conducted in Portuguese. To switch to English, please press the interpretation button on the platform and then select English. Agora, vamos iniciar a sessão de perguntas e respostas em português. A próxima pergunta vem de Marcelo Rocha, com CBN Vale. Por favor, pode prosseguir. Senhor Rocha, Marcelo Rocha, com CBN Vale, pode prosseguir. Senhoras e senhores, acredito que o microfone do Marcelo Rocha está mutado do lado dele. A próxima pergunta vem de Karen Salomão, com Seu Dinheiro. Por favor, pode prosseguir.

Operator: Thank you very much, sir. This concludes the question-and-answer session in English for the press. This question-and-answer session is now being conducted in Portuguese. To switch to English, please press the interpretation button on the platform and then select English. [Foreign language]

Speaker #3: To switch to English, please press the interpretation button on the platform and then select English. Agora, vamos iniciar a sessão de perguntas e respostas em português.

Speaker #3: A próxima pergunta vem de Marcelo Rocha, da CBN Vale. Por favor, pode prosseguir. Senhor Rocha, Marcelo Rocha, da CBN Vale, pode prosseguir. Senhoras e senhores, acredito que o microfone do Marcelo Rocha está mutado do lado dele.

Speaker #3: Então, a próxima pergunta vem de Karim Salomão, com Seu Dinheiro. Por favor, pode prosseguir.

Speaker #5: Bom dia. Consegue.

Speaker #7: Bom dia.

Speaker #5: Oi. O backlog da Embraer continua batendo recorde. Tem algum limite do que a Embraer é capaz de produzir? Quais são os investimentos para aumentar a produção nos próximos anos?

Karen Salomão: Bom dia.

Karin Salomão: [Foreign language]

Francisco Gomes Neto: Bom dia.

Francisco Gomes Neto: [Foreign language]

Karen Salomão: Oi. O backlog da Embraer continua batendo recordes. Tem algum limite do que a Embraer é capaz de produzir? Quais que são os investimentos pra aumentar a produção nos próximos anos? Esses ganhos de eficiência que os senhores falaram são o suficiente pra manter a velocidade de entregas e produção? Obrigada.

Karin Salomão: [Foreign language]

Speaker #5: Ou esses ganhos de eficiência que os senhores falaram são o suficiente para manter a velocidade de entregas e produção? Obrigada.

Speaker #7: Oi, Karin. Muito boa pergunta. É uma combinação das duas coisas. Uma é continuar investindo eficiência, então exemplo que a gente sempre tem trazido aqui com os freighters, por exemplo, a gente em 2021 levava 18 meses para produzir freighter.

Francisco Gomes Neto: Oi, Karen. Muito boa pergunta. É uma combinação das duas coisas. Uma é continuar investindo em eficiência. Um exemplo que a gente sempre tem trazido aqui é com os Praetors. A gente, em 2021, levava 18 meses para produzir um Praetor. Hoje a gente produz o mesmo avião em 8 meses e meio. E nós estamos fazendo isso com todos os aviões. A gente, com isso, consegue produzir mais aviões com a mesma estrutura. Em paralelo, nós estamos investindo também em aumento de capacidade de produção. A gente espera chegar em 2030 com uma capacidade de produção entre 110 a 120 aviões comerciais por ano, mais de 200 aviões executivos e mais de 10 KCs no Brasil. O KC, como eu falei numa pergunta anterior, ainda tem a oportunidade de a gente ter novas linhas de produção.

Francisco Gomes Neto: [Foreign language]

Speaker #7: Hoje, a gente produz o mesmo avião em oito meses e meio. E nós estamos fazendo isso com todos os aviões. Então, a gente, com isso, consegue produzir mais aviões com a mesma estrutura.

Speaker #7: Mas, em paralelo, nós estamos investindo também em aumento de capacidade de produção. Então, a gente espera chegar em 2030 com uma capacidade de produção aí de 110 a 120 aviões comerciais por ano, mais de 200 aviões executivos e mais de 10 KCs no Brasil.

Speaker #7: E o KC, como eu falei na pergunta anterior, ainda tem a oportunidade de a gente ter novas linhas de produção, ainda uma possibilidade. Os Estados Unidos é outra.

Speaker #7: E até os aviões comerciais, se o nosso projeto com a Índia avançar, nós podemos ter uma segunda linha de produção dos aviões comerciais na Índia.

Francisco Gomes Neto: A Índia é uma possibilidade, Estados Unidos é outra, e até os aviões comerciais. Se o nosso projeto com a Índia avançar, nós podemos ter uma segunda linha de produção dos aviões comerciais na Índia. Tem boas perspectivas, mas nós estamos fazendo isso de uma forma bastante responsável, simultaneamente ao crescimento do nosso backlog. Não vai ser a capacidade de produção que vai limitar o nosso crescimento futuro.

Francisco Gomes Neto: [Foreign language]

Speaker #7: Então, assim, tem boas perspectivas, mas nós estamos fazendo isso de uma forma tão irresponsável. Simultaneamente, o crescimento do nosso backlog. Então, não vai ser a capacidade de produção que vai limitar o nosso crescimento futuro.

Speaker #5: Perfeito. Obrigada.

Speaker #7: Nada.

Speaker #3: A nossa próxima pergunta vem de Christian Carricco, do Valor Econômico. Por favor, pode prosseguir.

Karen Salomão: Perfeito, obrigada.

Karin Salomão: [Foreign language]

Francisco Gomes Neto: De nada.

Francisco Gomes Neto: [Foreign language]

Operator 2: A nossa próxima pergunta vem de Christian Carrico, com Valor Econômico. Por favor, pode prosseguir.

Operator: [Foreign language]

Speaker #6: Pessoal, tudo bem? Obrigado pelo espaço. Parabéns pelos resultados. Acho que eu tenho uma dúvida do meu lado. Se eu consegui ouvir pouquinho mais de vocês sobre essa atualização de guidance, eu achei bem interessante essa questão de ganhos de produtividade, sobretudo na divisão executiva.

Christian Carrico: Pessoal, tudo bem? Obrigado pelo espaço, parabéns pelos resultados. Eu tenho uma dúvida do meu lado, se eu conseguir ouvir um pouquinho mais de vocês sobre essa atualização de guidance. Eu achei bem interessante essa questão de ganhos de produtividade, sobretudo na divisão executiva. Então só para ver se eu entendi bem. Foi basicamente esse ajuste fino que vocês conseguiram fazer do lado dos fornecedores para reduzir esses atrasos e vocês têm uma perspectiva bem positiva. Pelo que entendi, foi isso. Uma dúvida que eu fiquei é com relação a atualizações de guidances por causa da questão das tarifas dos Estados Unidos. Eu lembro que antes, se eu não estou enganado, essas tarifas caíram, mas vocês acabaram não fazendo uma atualização de guidance por causa disso, não tiveram. Eu estou na dúvida se há espaço de fazer novas atualizações por causa desse cenário.

Cristian Favaro: [Foreign language]

Speaker #6: Então, só para ver se eu entendi bem, foi basicamente esse ajuste fino que vocês conseguiram fazer do lado dos fornecedores para reduzir esses atrasos e ter uma perspectiva bem positiva.

Speaker #6: Pelo que eu entendi, foi isso. E uma dúvida que eu fiquei é com relação à atualização de guidance por causa da questão das tarifas dos Estados Unidos.

Speaker #6: Eu lembro que antes, se eu não estou enganado, essas tarifas caíram, mas vocês acabaram não fazendo uma atualização de guidance porque vocês não tiveram.

Speaker #6: Aí eu estou perdendo a dúvida, tipo assim, há espaço de fazer novas atualizações por causa desse cenário? E tem aquela questão de você ter ainda residual de peças que foram enviadas, as, enfim, e por isso foram tarifadas, por isso você tem no balanço.

Christian Carrico: Tem aquela questão de você ter ainda um residual de peças que foram enviadas, e por isso foram tarifadas, por isso você tem isso no balanço. Isso já está menor, isso deve continuar nos próximos trimestres? Para entender um pouco como que está essa questão dentro dos números e se tem mais possibilidade de ajustes para frente? Obrigado.

Cristian Favaro: [Foreign language]

Speaker #6: Isso já está menor? Isso deve continuar nos próximos trimestres? Nós para entender pouco como que está essa questão dentro dos números e se tem mais possibilidade de ajustes para frente.

Speaker #6: Obrigado.

Speaker #7: Foi, Christian, bom dia. Guilherme aqui. Obrigado pela pergunta. O ajuste de guidance que a gente fez, como você mencionou, foi por uma série de fatores.

Gui Paiva: Oi, Christian, bom dia. Guilherme aqui, obrigado pela pergunta. O ajuste de guidance que a gente fez, como você mencionou, foi uma série de fatores. Uma foi os créditos tarifários relacionados às tarifas americanas que nós recebemos durante esse trimestre. Outro ponto foi o fato que nós não estamos mais sendo tributados diretamente por esses impostos de importação norte-americanos, dadas decisões que aconteceram no país recentemente. O terceiro foi um pouco a melhoria do nosso outlook de negócios. Dado que a empresa vem performando um pouco melhor do que a gente esperava nos trimestres anteriores. A administração revê o plano de negócios dela regularmente. Quando nós publicamos nossos resultados trimestralmente, esse é sempre um momento no qual a gente pode reiterar o guidance anterior que a empresa teve ou atualizá-lo como nós fizemos nesse trimestre.

Gui Paiva: [Foreign language]

Speaker #7: Uma foi os créditos tarifários relacionados às tarifas americanas que nós recebemos durante esse trimestre. Outro ponto foi o fato que nós não estamos mais sendo tributados diretamente, por esses impostos de importação norte-americanos dadas decisões que aconteceram no país, recentemente.

Speaker #7: E o terceiro foi pouco a melhoria do nosso Outlook de negócios, dado que a empresa vem performando pouco melhor do que a gente esperava nos trimestres anteriores.

Speaker #7: A administração revê o plano de negócios dela regularmente. E quando nós publicamos nossos resultados trimestralmente, isso é sempre momento no qual a gente pode reiterar o guidance anterior, que a empresa teve, ou atualizá-lo como nós fizemos nesse trimestre.

Speaker #6: Perfeito. Obrigado.

Speaker #3: A próxima pergunta vem de Marcelo Rocha, com CBN Vale. Por favor, pode prosseguir. Senhor Rocha, o senhor está liberado. Mas o seu microfone está mutado do seu lado.

Christian Carrico: Perfeito, Guilherme, obrigado.

Cristian Favaro: [Foreign language]

Operator 2: Próxima pergunta vem de Marcelo Rocha, com CBN Vale. Por favor, pode prosseguir. Senhor Rocha, o senhor está liberado, mas o seu microfone está mutado do seu lado. Poderia verificar isso, por favor? Nós não estamos te ouvindo. Ok, muito obrigada. Próxima pergunta vem do chat e é de Nelson Düring, com DefesaNet. Aqui. Primeira pergunta é: qual a participação projetada para a área de defesa no faturamento total? Agora está em 14%.

Operator: [Foreign language]

Speaker #3: Poderia verificar isso, por favor? Nós não estamos te ouvindo. Nós não estamos te ouvindo. Ok, muito obrigada. A próxima pergunta vem do chat, e é de Nelson During, com a DefesaNet.

Speaker #3: Aqui. A primeira pergunta é: qual a participação projetada para a área de Defesa no faturamento total? Agora está em 14%.

Speaker #7: Obrigado pela pergunta. Nelson, historicamente, a Defesa sempre ficou nessa faixa de em torno de 12 a 15% da participação da EMBRAER. Mas o que acontece agora é que, como a receita está crescendo, então esse valor em dólar, ele cresce também.

Francisco Gomes Neto: Obrigado pela pergunta, Nelson. Historicamente, a defesa sempre ficou nessa faixa em torno de 12% to 15% da participação da Receita Embraer. O que acontece agora, como a receita está crescendo, esse valor in dollars cresce também. A gente estima que pelo menos até 2030, a defesa fique nessa faixa de 12% to 15% da participação da receita, mas com uma rentabilidade crescente, o que é bastante importante.

Francisco Gomes Neto: [Foreign language]

Speaker #7: Então, a gente estima, assim, que pelo menos até 2030, a Defesa fique aí nessa faixa de 12% a 15% da participação da receita, mas com uma rentabilidade crescente, o que é bastante importante.

Speaker #3: Muito obrigada. Nós também temos uma segunda. Pergunta aqui enviada no chat. Do Marcelo Rocha, que ele mudou aqui para a gente, com CBN Vale.

Operator 2: Muito obrigada. Também temos uma segunda pergunta aqui enviada no chat, do Marcelo Rocha, que ele mandou aqui pra gente, com CBN Vale. Para o senhor Francisco: foi citado que a previsão do eVTOL da Eve entrar em operação comercial até o final de 2028. Quantas unidades podem entrar no mercado nesse período e qual será o primeiro voo comercial previsto no Brasil ou no exterior?

Operator: [Foreign language]

Speaker #3: Para o senhor Francisco. Foi citado que a previsão do EVTOL da IVE entrar em operação comercial até o final de 2028. Quantas unidades podem entrar no mercado nesse período e qual será o primeiro voo comercial previsto no Brasil ou no exterior?

Speaker #7: Obrigado pela pergunta. Sim, a nossa expectativa é dela o IVE entrar em operação até o final de 2028. Nós temos hoje cerca de 3.000 cartas em intenção de compra.

Francisco Gomes Neto: Obrigado pela pergunta. Sim, a nossa expectativa é do Eve entrar em operação até o final de 2028. Nós temos hoje cerca de 3,000 cartas de intenção de compra, alguns pedidos já firmes para o eVTOL. A entrada em operação, possivelmente, deve ocorrer no Brasil e nos Estados Unidos, como início. Talvez seja simultaneamente. No Brasil, pela proximidade da engenharia, e nos Estados Unidos, pelas oportunidades que nós temos em várias cidades. É nesta linha e a gente, em termos de produção, nós vamos iniciar com a produção em Taubaté, como a gente já anunciou no passado. Taubaté vai ter uma capacidade máxima próximo de 480 unidades por ano e com uma remontagem dessas aeronaves perto das operações onde elas devem operar no futuro, porque ela não voa, ela tem um range muito pequeno.

Francisco Gomes Neto: [Foreign language]

Speaker #7: Alguns pedidos já firmes. Para o eVTOL, a entrada em operação possivelmente deve ocorrer no Brasil e nos Estados Unidos, como início. Talvez simultaneamente. E, no Brasil, pela proximidade da engenharia; nos Estados Unidos, pelas oportunidades que nós temos em várias cidades.

Speaker #7: Então, é nesta linha. E a gente, em termos de produção, nós vamos iniciar com a produção em Taubaté, como a gente anunciou no passado.

Speaker #7: Taubaté vai ter uma capacidade máxima próxima de 480 unidades por ano. E com uma remontagem dessas aeronaves, perto das operações onde elas devem operar no futuro, porque ela não voa, ela tem range muito pequeno.

Speaker #7: E com isso, a gente vai sentindo o mercado. E depois vamos decidir sobre outras fábricas do EVTOL, que a gente ainda não tem essa definição neste momento.

Speaker #7: Mas é assim que a gente quer suportar a entrada de operação dos eVTOLs a partir de 2028.

Francisco Gomes Neto: Com isso a gente vai sentindo o mercado e depois vamos decidir sobre outras fábricas do eVTOL, que a gente ainda não tem essa definição neste momento. É assim que a gente quer suportar a entrada de operação dos eVTOLs a partir de 2028.

Francisco Gomes Neto: [Foreign language]

Speaker #3: Muito obrigada. A próxima pergunta também vem do chat e também é do Nelson During, com DefesaNet. Quais as versões estão sendo projetadas para o KC-390?

Operator 2: Muito obrigada. A próxima pergunta também vem do chat e também é do Nelson Düring, com DefesaNet: quais as versões estão sendo projetadas para o KC-390? O KC-390 MPA, Maritime Patrol Aircraft, está avançando?

Operator: [Foreign language]

Speaker #3: O KC-390 MPA, Maritime Patrol Aircraft, está avançando?

Speaker #7: Olha, Nelson, eu não tenho esse detalhe de informação sobre essas versões, mas as versões que nós vendemos hoje são o C-390 e o KC-390. A diferença entre os dois é o reabastecimento, o air refueling, o reabastecimento aéreo.

Francisco Gomes Neto: Olha, Nelson, eu não tenho esse detalhe de informação sobre essas versões, as versões que nós vendemos hoje é o C-390 e o KC-390. A diferença entre os dois é o reabastecimento, o air refueling, o reabastecimento aéreo, cada negócio tem especificações diferentes. Não temos ainda uma versão para patrulhamento marítimo, que eu saiba, até o momento. Estamos focando realmente nos modelos do C-390 e no KC-390, com as diferentes especificações de cada cliente.

Francisco Gomes Neto: [Foreign language]

Speaker #7: E cada negócio tem especificações diferentes. Não temos ainda uma versão para patrulhamento marítimo, que eu saiba, até o momento. Então, nós estamos focando realmente nos modelos do C-390 e no KC-390, com as diferentes especificações de cada cliente.

Speaker #3: Muito obrigada. Ok, está certo. Muito obrigada, senhor. Concluímos as sessões de perguntas e respostas e a conferência de resultados da Embraer. Muito obrigada pela sua participação e tenham todos um bom dia.

Operator 2: Muito obrigada. Ok, tá certo. Muito obrigada, senhor. Concluímos as sessões de perguntas e respostas e a conferência de resultados da Embraer. Muito obrigada pela sua participação e tenham todos um bom dia.

Operator: [Foreign language]

Francisco Gomes Neto: Parabéns a todos.

Francisco Gomes Neto: [Foreign language]

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