EMBJ vs TXT: How Embraer and Textron Compare (2026)
Last updated August 2026
Short answer
EMBJ and TXT are similarly sized, but TXT trades noticeably cheaper on forward earnings (11.80x vs 18.95x): the market is paying up for EMBJ's profile and pricing TXT more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
EMBJ vs TXT: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | EMBJ | TXT | What it tells you |
|---|---|---|---|
| Market cap | $12.99B | $14.66B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 18.95 | 11.80 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 42.70 | 16.06 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.68 | 0.90 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 72% of range | 35% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 3.89 | 1.85 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: TXT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how EMBJ and TXT affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. EMBJ and TXT share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined EMBJ and TXT exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Embraer (EMBJ) do?
Embraer S.A. is a global aerospace company headquartered in Sao Paulo that designs and builds aircraft across four reported segments. Commercial Aviation covers the E1 and E2 families of jets up to about 150 seats, where Embraer sits behind Airbus and Boeing but effectively owns the sub-150-seat category. Executive Aviation sells the light Phenom and midsize Praetor business jets. Defense and Security builds the C-390/KC-390 Millennium multi-mission transport and the A-29 Super Tucano light attack and trainer aircraft. Services and Support is the aftermarket arm covering maintenance, parts pooling and engine overhaul, and it carries the highest margin of the four. A smaller Others segment holds agricultural aviation, the Tempest cyber unit and a landing-gear business, and the majority-owned Eve Holding eVTOL venture is consolidated but carved out of guidance. Embraer delivered 244 aircraft in 2025 on revenue of ~$7.58 billion and has shipped more than 9,000 aircraft since 1969.
What does Textron (TXT) do?
Textron is a diversified industrial conglomerate best known for aircraft. Its largest businesses are Textron Aviation, which makes Cessna and Beechcraft business jets and turboprops, and Bell, which makes military and commercial helicopters and tiltrotor aircraft. Bell builds the V-22 Osprey and won the US Army's Future Long-Range Assault Aircraft (FLRAA) program with the V-280 Valor tiltrotor, a multi-decade defense award. Textron also owns Textron Systems (defense electronics, drones, weapons), Industrial (Kautex fuel systems, specialized vehicles like golf carts and Arctic Cat), and a financing arm. The company sells to private and corporate aircraft buyers, governments, and industrial customers worldwide. Headquartered in Providence, Rhode Island, Textron is a long-established defense and aerospace prime contractor whose fortunes track business-jet demand, defense budgets, and program execution. It blends cyclical commercial aviation exposure with steadier multi-year government contracts.
EMBJ vs TXT: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- EMBJ drivers: Converting a record backlog into deliveries; Defense and Security turning from drag to contributor.
- TXT drivers: FLRAA tiltrotor program; Business jet cycle and Aviation backlog.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Deliveries are concentrated in the back half of the year, so a supply chain slip on engines or structures in the fourth quarter can move the full-year result materially, and Embraer has limited room to catch up once a quarter is lost. For TXT, textron's business-jet segment is cyclical and tied to corporate confidence and high-end consumer spending, so a recession can sharply reduce orders and deliveries.
EMBJ or TXT: which should you pick?
EMBJ vs TXT: the full fundamentals
EMBJ. Embraer had not yet reported second-quarter 2026 financials as of early August, with the release scheduled for August 10, so the latest full income statement is 1Q26: revenue of ~$1,447 million, up ~31% and the highest first quarter on record, adjusted EBIT of ~$94.0 million at a ~6.5% margin, and adjusted net income of ~$27.7 million. The ADSs are up substantially over the past year and sit inside a 52-week range of roughly $54 to $81, with average sell-side price targets near $81. The trailing multiple looks demanding against a business earning single-digit EBIT margins, which is largely why the forward figure compresses to the low twenties on the guided ramp.
TXT. Textron trades at an industrial multiple that reflects a blend of cyclical business-jet exposure and steadier defense revenue. The valuation embeds both the FLRAA ramp optionality and the risk of a business-jet downturn. Consistent buybacks support per-share earnings, while the conglomerate structure means the parts are sometimes valued below pure-play peers.
Headline figures (approximate, August 2026): EMBJ shows revenue (ttm) ~$7.9 billion (four quarters through 1Q26; FY2025 was ~$7.58 billion, up ~18%), 2026 revenue guidance ~$8.2 billion to ~$8.5 billion, adjusted ebit margin ~8.7% in FY2025, guided ~8.7% to ~9.3% for 2026, firm order backlog ~$34.5 billion as of 2Q26, a seventh consecutive record; TXT shows revenue (ttm) ~$14 billion, operating margin ~9-10%, aviation backlog multi-billion (Citation and Beechcraft orders), eps (ttm) ~$5.50-6.00 adjusted.
The bottom line: EMBJ vs TXT
EMBJ and TXT are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined EMBJ and TXT exposure against your real portfolio. It is not an investment adviser.
Wondering how EMBJ or TXT fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Embraer with AI
Connect the broker you already use and ask Walnut's AI how EMBJ fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between EMBJ and TXT?
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Embraer S.A. Textron is a diversified industrial conglomerate best known for aircraft. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is EMBJ or TXT the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, EMBJ or TXT?
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On forward P/E (as of August 2026), EMBJ trades at 18.95x and TXT at 11.80x, so TXT is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both EMBJ and TXT?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of EMBJ vs TXT?
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EMBJ: Deliveries are concentrated in the back half of the year, so a supply chain slip on engines or structures in the fourth quarter can move the full-year result materially, and Embraer has limited room to catch up once a quarter is lost. Commercial Aviation still produced a negative adjusted EBIT margin in 1Q26 at low volume, meaning the segment's economics only work at scale. Free cash flow swings hard within the year: stand-alone net cash went from ~+$109 million at the end of 2025 to ~-$530 million at 1Q26 as inventory built, and the full-year target of ~$200 million depends on shipping the second-half aircraft. US tariff policy on Brazilian-built aircraft is outside the company's control and is baked into guidance at a 10% assumption. The Eve eVTOL venture consumes cash with no revenue, and at roughly 40x trailing earnings the shares leave little cushion if any of the above slips. TXT: Textron's business-jet segment is cyclical and tied to corporate confidence and high-end consumer spending, so a recession can sharply reduce orders and deliveries. Defense programs face budget, schedule, and execution risk: FLRAA ramps over years and cost overruns or delays would pressure margins. The Industrial segment (specialized vehicles, fuel systems) is exposed to auto-supply and consumer-discretionary cycles. Textron competes against far larger primes (Lockheed Martin, Boeing) in defense and against Gulfstream, Bombardier, Embraer, and Dassault in business jets. Program concentration, supply-chain constraints, and labor costs add execution risk, and the financing arm carries credit exposure to aircraft buyers.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell EMBJ or TXT; figures are approximate and dated (as of August 2026). Verify current data before investing.