Embraer Q1: Not The Blowout Quarter I Expected, But Still A Buy

Embraer S.A. remains a Buy despite a post-earnings selloff and a 10% stock decline since Q1 2026 results. Negative free cash flow and record-high inventories reflect EMBJ's preparations for higher aircraft deliveries, not fundamental weakness. Q1 revenue hit an all-time high, but Defense & Security backlog growth and delivery pace disappointed amid global unrest.