Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) Shares Gap Up – Here’s What Happened

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) shares gapped up before the market opened on Monday . The stock had previously closed at $73.01, but opened at $78.85. Embraer-Empresa Brasileira de Aeronautica shares last traded at $77.32, with a volume of 542,079 shares.

Embraer-Empresa Brasileira de Aeronautica News Roundup

Here are the key news stories impacting Embraer-Empresa Brasileira de Aeronautica this week:

• Positive Sentiment: Embraer reported second-quarter EPS of $1.17, well above the $0.61 consensus estimate, while revenue reached approximately $2.19 billion. Net profit rose 25% year over year to 1.11 billion Brazilian reais, supported by higher aircraft deliveries and operating leverage. Reuters article on Embraer’s second-quarter results
• Positive Sentiment: Management raised its full-year adjusted EBIT margin outlook to 10.0%-10.6% and increased minimum free-cash-flow guidance to at least $400 million. The company’s backlog was reported at roughly $34.5 billion, with commercial aviation book-to-bill of 1.8x and growing defense demand, including a 10-aircraft UAE order for C-390 transports. Embraer second-quarter 2026 earnings release
• Positive Sentiment: Deliveries increased sharply, margins strengthened even excluding certain tax and tariff effects, and net debt fell to approximately 0.2 times adjusted EBITDA. These trends support the view that Embraer is converting its backlog into stronger cash generation and earnings.
• Neutral Sentiment: Analysts and investors may be reassessing forecasts following the earnings beat. The company’s E2 commercial jet program has surpassed 500 firm orders, while ongoing supply-chain constraints at larger aircraft manufacturers could create additional opportunities for Embraer.
• Negative Sentiment: Embraer revised 2026 revenue guidance to $8.2 billion-$8.5 billion, below the $8.5 billion consensus estimate’s midpoint expectation, potentially tempering enthusiasm despite the profit outlook. Embraer revised 2026 guidance announcement
• Negative Sentiment: Zacks Research made a small reduction to its FY2028 EPS forecast, lowering it to $4.60 from $4.61. The minor cut may nevertheless reinforce concerns that the shares have moved ahead of some analysts’ earnings expectations.

Analyst Upgrades and Downgrades

EMBJ has been the topic of several recent analyst reports. JPMorgan Chase & Co. dropped their target price on shares of Embraer-Empresa Brasileira de Aeronautica from $84.00 to $80.00 and set an “overweight” rating on the stock in a report on Tuesday, May 12th. Scotiabank assumed coverage on Embraer-Empresa Brasileira de Aeronautica in a report on Monday, June 8th. They set a “sector outperform” rating and a $81.00 price target for the company. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Embraer-Empresa Brasileira de Aeronautica in a research report on Monday, July 20th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Embraer-Empresa Brasileira de Aeronautica has a consensus rating of “Hold” and an average price target of $68.00.

Embraer-Empresa Brasileira de Aeronautica Stock Performance

The company has a market capitalization of $12.90 billion, a price-to-earnings ratio of 28.90, a P/E/G ratio of 1.78 and a beta of 1.44. The company has a 50 day moving average price of $64.09 and a 200 day moving average price of $64.75. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.73 and a current ratio of 1.48.

Hedge Funds Weigh In On Embraer-Empresa Brasileira de Aeronautica

A number of institutional investors have recently modified their holdings of the company. Itau Unibanco Holding S.A. purchased a new position in shares of Embraer-Empresa Brasileira de Aeronautica in the 4th quarter worth approximately $68,460,000. Lord Abbett & CO. LLC purchased a new stake in shares of Embraer-Empresa Brasileira de Aeronautica during the fourth quarter valued at approximately $28,696,000. Vaughan Nelson Investment Management L.P. purchased a new stake in shares of Embraer-Empresa Brasileira de Aeronautica during the first quarter valued at approximately $21,687,000. Russell Investments Group Ltd. bought a new stake in Embraer-Empresa Brasileira de Aeronautica during the fourth quarter worth $21,288,000. Finally, Ameriprise Financial Inc. boosted its position in Embraer-Empresa Brasileira de Aeronautica by 20.7% in the third quarter. Ameriprise Financial Inc. now owns 970,129 shares of the aerospace company’s stock worth $58,644,000 after purchasing an additional 166,489 shares during the last quarter. 34.65% of the stock is owned by institutional investors and hedge funds.

Embraer-Empresa Brasileira de Aeronautica Company Profile

Embraer SA (NYSE:EMBJ), legally known as Embraer – Empresa Brasileira de Aeronáutica SA, is a global aerospace company headquartered in São José dos Campos, Brazil. The company designs, develops, manufactures and sells commercial, executive, defence and agricultural aircraft. Embraer’s product portfolio includes the popular E-Jets family for regional and short-haul carriers, the advanced E2 series, a range of business jets under the Phenom, Legacy and Praetor brands, the A-29 Super Tucano military trainer and light attack aircraft, the C-390 Millennium multi-mission transport platform, and the Ipanema agricultural aircraft.

Embraer’s commercial aviation segment focuses on regional airlines and air taxi operators, offering aircraft that seat between 70 and 150 passengers.