SAO PAULO — Brazilian aircraft manufacturer Embraer posted record revenues in the first quarter of 2026, the company said Friday, but US tariffs weighed on profits.

 

The world's third-largest aircraft manufacturer — after Airbus and Boeing — saw net profits drop from $50 million in the same period last year to $27.7 million this year.

 

Overall revenues stood at $1.4 billion.

 

"We had the US tariffs this quarter that we didn't have last year," said Embraer's Chief Financial Officer Felipe Santana.

 

US President Donald Trump lifted a large portion of tariffs placed on Brazilian exports in late 2025, but a 10 percent tariff remained on aircraft.

 

Further tariffs were lifted in February this year and Brazilian aircraft can now be exported to the US duty-free.

 

Earnings in the executive aviation division have been particularly hard hit, said Santana.

 

Embraer CEO Francisco Gomes Neto hailed a contract to sell between 10 and 20 C-390 military aircraft to the United Arab Emirates.

 

"We are very pleased with this new order in the Middle East. It is the first in the region for the C-390," said Gomes Neto.

 

He said the war in Iran had not impacted demand for new aircraft so far.

 

"We see no decline in interest regarding new sales campaigns, nor any moves by customers to delay deliveries."

 

Brazilian President Luiz Inacio Lula da Silva met with Trump at the White House on Thursday to discuss points of tension between the countries, including tariffs.