Defense
Key Facts
—The contest. Chile is choosing a new military transport to replace its 50-year-old C-130 Hercules fleet.
—The challenger. Embraer’s twin-jet KC-390 (about 26 tonnes) faces Europe’s four-engine Airbus A400M (up to 37 tonnes).
—The field. Lockheed’s C-130J and Leonardo’s C-27J are also bidding; Spain formally offered the A400M in June.
—The pitch. At Salitre 2026 a single KC-390 flew six Brazilian Gripens into Chile — a live self-sufficiency demo.
—The sweetener. Argentina builds KC-390 parts, and Embraer has courted Chile’s ENAER, adding an industrial angle.
—The caveat. No contract is signed, and British-made components could complicate a KC-390 sale.
Chile is shopping for new military cargo planes, and a Brazilian challenger has put itself at the front of the queue. The KC-390 Chile campaign pits Embraer’s twin-jet transport against Europe’s four-engine Airbus A400M and two other rivals, as Santiago looks to replace C-130 Hercules aircraft that have flown for more than half a century. Embraer’s jet can haul about 26 tonnes; the A400M carries up to 37. Nothing has been signed, but the contest has already produced one of the more inventive sales pitches the region has seen.
The Chilean Air Force, known by its Spanish initials FACh, has received offers from at least four manufacturers, according to Defense.com. The field is Lockheed Martin’s C-130J Super Hercules, Leonardo’s C-27J Spartan, Embraer’s KC-390 Millennium and, most recently, the Airbus A400M Atlas, which Spain formally offered in June.
Why Chile is shopping for a transport
A military transport is the workhorse behind every operation that is not combat: it moves troops, vehicles, relief supplies and equipment over long distances, often into rough or short airstrips. For Chile, that job is unusually demanding because the country is a 4,000-kilometre ribbon running from desert to Antarctic gateway.
The current fleet of C-130 Hercules still flies the hardest missions, from Antarctic runs to disaster relief, including recent humanitarian flights to Bolivia. But the airframes are aging, and their condition has been debated in Chile’s Congress, where the Defense Commission reviewed the fleet’s status with the defense minister in January 2026.
The two contenders in focus
Four aircraft are technically in the running, but the race that matters is between the momentum challenger and the heavyweight. One offers lower cost and commonality; the other offers raw capability. Here is how the two front-runners compare.
Feature
Embraer KC-390 Millennium
Airbus A400M Atlas
Origin
Brazil
Europe (multinational)
Engines
Two jet engines
Four turboprops
Max payload
About 26 tonnes
Up to 37 tonnes
Cruise speed
High-subsonic jet speed
Above 780 km/h
Range with load
Tactical and strategic reach
About 6,390 km with 20 tonnes
Operators so far
13-plus, including Brazil, Portugal, the Netherlands, South Korea, Hungary and the UAE
European air forces led by Spain, Germany and France
The KC-390 case
Embraer designed the KC-390 explicitly to replace the C-130, and it has been winning export orders at a steady clip, most recently a Gulf deal with the United Arab Emirates for ten aircraft plus ten options. Its pitch to Chile is cost and modernity: cheaper to operate than the American Hercules, and a fresh design rather than an updated classic.
There is an industrial sweetener too. Argentina’s state aircraft plant produces components for the KC-390, so a Chilean order would fold Santiago into a South American supply chain, and Embraer has signaled interest in working with Chile’s own aerospace firm ENAER.
The A400M case
The Airbus A400M is the bigger, more capable machine, and Spain has pushed it hard. At the FIDAE air show its crews stressed the plane’s ability to operate from short, unprepared strips while carrying up to 37 tonnes, along with the range to cover Chile’s vast geography and its Antarctic ambitions.
The trade-off is scale and cost. Analysts and even Chilean commentators note that the A400M may be more aircraft than Chile needs, and that a fleet of smaller planes could offer more flexibility per dollar, which is the central question Santiago has to weigh.
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Rio Times · Live Ticker Intelligence
Embraer SA ADR
EMBJ3 · B3 São PauloIndustrialsAerospace & Defense
Share price · live
$84.83
▲ +2.08% 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
▲ +1.96%
WEGE3
▲ +0.48%
LATAM AIR · LATAM Airlines
▼ -0.23%
Data: EODHD Fundamentals & live feed · The Rio Times Ticker Intelligence
How Salitre became a sales pitch
The cleverest moment in this contest was not a brochure but a formation of aircraft. At the multinational Salitre exercise in Chile in early July, a single KC-390 led six Brazilian Gripen fighters into Antofagasta, carrying all their support crew, spare parts and supplies for the deployment and handling the group’s navigation both ways.
That was the whole argument made visible. A buyer wants a transport that lets an air force pack up and deploy on its own, and by flying the Gripens in and sustaining them, the KC-390 demonstrated exactly that self-sufficiency in Chilean skies. Months earlier, at FIDAE 2026, Chilean President José Antonio Kast had toured the same aircraft in Santiago with his defense minister and air force chief.
None of this settles the competition. The FACh has not declared a preference, the offers are still being evaluated, and any KC-390 purchase would first have to resolve a wrinkle over British-made components that could complicate a sale, given Chile’s own history. For now this is a story of momentum and courtship, not a contract.
Frequently asked questions
Is the KC-390 Chile deal confirmed?
No. Chile is evaluating offers to replace its C-130 Hercules transports, and the KC-390 is one of at least four contenders alongside the Airbus A400M, Lockheed’s C-130J and Leonardo’s C-27J. No contract has been signed.
How does the KC-390 compare to the A400M?
The KC-390 is a twin-jet transport carrying about 26 tonnes, pitched on lower cost and commonality. The A400M is a larger four-turboprop aircraft carrying up to 37 tonnes with longer reach, but it is more expensive and, some argue, larger than Chile needs.
What happened at the Salitre exercise?
At the Salitre 2026 exercise, a single KC-390 led six Brazilian Gripen fighters into Chile, carrying their support crew, parts and supplies. It served as a live demonstration of the self-sufficient deployment capability that a buyer like Chile is looking for.
Why is Chile replacing its C-130 Hercules?
Chile’s C-130 fleet has flown for more than 50 years and, despite upgrades, is aging. The planes remain vital for Antarctic missions and disaster relief across Chile’s long geography, but the air force is looking to replace or complement them for the coming decades.
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