The Brazilian Cargo Plane Winning the West’s Rearmament

Defense · Industry

—The plane. The KC-390 is a military cargo aircraft built by Brazil’s Embraer, designed to haul troops and equipment.

—The breakthrough. The United Arab Emirates ordered up to twenty, the aircraft’s first sale to the Middle East.

—The customers. A string of NATO countries in Europe have already chosen the plane over American and European rivals.

—The driver. War in Europe and rising defence budgets have sent governments hunting for transport aircraft.

—The pitch. Embraer offers faster delivery than rivals whose order books are full.

—The stake. A Brazilian company is becoming an unlikely winner from the West’s rearmament.

The rise of KC-390 exports is one of the clearest signs that Brazil has built a defence product the world’s wealthiest militaries actually want to buy.

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A surprise success story

Brazil is not the first country that comes to mind for military aircraft. Yet its planemaker Embraer has built a transport plane, the KC-390 Millennium, that is steadily winning orders around the world.

The aircraft is designed to carry soldiers, vehicles and cargo, drop supplies, refuel other planes and operate from rough, short runways, the workhorse role every modern air force needs filled.

Its biggest recent win came in the Gulf, where the United Arab Emirates placed a firm order for up to twenty of the planes, the first time a Middle Eastern country has bought the type.

Why KC-390 exports are taking off

The deeper story is in Europe. A long list of NATO members, including Portugal, Hungary, the Netherlands, Austria, the Czech Republic, Sweden and Slovakia, have chosen the Brazilian plane.

The war in Ukraine transformed the continent’s mood. Governments that had let defence spending wither are now rearming quickly, and military transport is one of their most urgent needs.

That demand has run into a supply problem. The established makers of large transport planes have full order books and long waiting lists, leaving buyers searching for alternatives.

Embraer’s pitch is speed and value. It can often deliver sooner than its rivals, and its plane sits in a useful size class between the largest transports and smaller tactical aircraft.

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Rio Times · Live Ticker Intelligence

Embraer SA ADR

EMBJ3 · B3 São PauloIndustrialsAerospace & Defense

Share price · live

$76.27

▼ -2.21% today

Market cap

$12.3 bn

183.4 mn shares

P / E

37.7

EPS 1.71

Dividend yield

0.1%

$0.07 / share

The company

Employees

20,923

Headquarters

São Paulo

Listed since

2000

Website

Embraer S.A., together with its subsidiaries, designs, develops, manufactures, and sells aircraft and systems worldwide. It operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets. Its Defense & Security segment…

Financial performance · FY · BRL

RevenueNet income

2022

R$4.5 bn

−R$185.4 mn

2023

R$5.3 bn

R$164.0 mn

2024

R$6.4 bn

R$352.5 mn

Net income rose to R$352.5 mn in 2024, from R$-185.4 mn in 2022.

Valuation & returns

EBITDA margin

10.2%

Net margin

5.4%

Return on equity

11.3%

Price / book

3.24

Enterprise value

$12.3 bn

Revenue growth · YoY

+30.9%

Latest earnings

Q4 2025 — reported EPS 0.00 vs 0.76 expected

Missed −100%

Peers & comparators

EMBRAER ADR

▼ -2.57%

WEGE3

▲ +0.12%

LATAM AIR · LATAM Airlines

▼ -0.45%

Data: EODHD Fundamentals & live feed · The Rio Times Ticker Intelligence

The neighbour effect

Brazil’s defence minister captured the momentum with a memorable line, saying that when a country buys the KC-390, it buys two and then tells its neighbour the plane is good.

There is real logic to that. Once several nearby air forces fly the same aircraft, they can share training, maintenance and spare parts, making the plane more attractive to the next buyer.

The minister has signalled that more export deals could be signed in the coming weeks, with several countries said to be evaluating the aircraft, though buyers are not always named in advance.

Each new flag on the map strengthens the sales case, turning early wins into a self-reinforcing cycle that Embraer is keen to keep spinning.

The limits to the boom

The constraint now is the factory. Embraer plans to build only a handful of the aircraft this year, scaling up toward roughly ten a year by the end of the decade as it expands capacity.

Ramping up production is hard. The plane relies on parts and systems from suppliers around the world, and bottlenecks anywhere in that chain can slow deliveries.

There is also competition risk. If the rearmament wave fades or established makers free up capacity, the window that Embraer is exploiting could narrow.

Why it matters

For Brazil, the success is strategic as well as commercial. A homegrown aircraft flying for NATO and Gulf forces lifts the country’s standing as a serious defence exporter, not just a commodity producer.

For Embraer, military transport adds a steadier, higher-margin revenue stream alongside its commercial jets, helping smooth the airline industry’s notorious cycles.

And for the wider region, it is a rare example of a Latin American company selling advanced engineering into the richest defence markets in the world, on its own terms.

What buyers are getting

The KC-390 sits in a sweet spot of size. It carries more than the small tactical transports many air forces fly, yet costs less to buy and operate than the largest strategic lifters.

It is also a jet, not a propeller aircraft, which means it flies faster and farther, a practical advantage for moving troops and aid quickly across long distances.

Its flexibility helps too. The same airframe can drop cargo, evacuate the wounded, fight fires or refuel other aircraft in mid-air, letting one fleet cover many roles.

For smaller nations, that versatility is appealing, since a single, affordable platform can handle missions that would otherwise require several specialised types.

Embraer has leaned on a global demonstration tour to show the plane to prospective buyers, letting air forces see the aircraft fly rather than judging it only on paper.

That hands-on approach, paired with competitive pricing, has helped the company chip away at markets long dominated by American and European manufacturers.

Frequently Asked Questions

What is the KC-390?

The KC-390 Millennium is a military transport aircraft built by Brazil’s Embraer. It carries troops, vehicles and cargo, can refuel other planes and operate from short runways, and competes with established American and European transport planes.

Why are KC-390 exports rising?

The war in Ukraine pushed European governments to rearm quickly, creating urgent demand for transport aircraft. With established makers facing full order books, Embraer wins business by offering faster delivery, and recently secured its first Middle Eastern buyer in the United Arab Emirates.

What could hold the program back?

Embraer can build only a limited number of aircraft each year and is scaling up slowly, while relying on a global web of suppliers that can create bottlenecks. If rearmament slows or rivals free up capacity, the current advantage could narrow.

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