Embraer cuts shares represented by each American depositary receipt from four to one
Key Facts
Embraer announced on October 30, 2026, a change to the ratio of its American depositary receipts, with each receipt representing one common share instead of 4, according to a summary of the announcement published via PR Newswire. The decision changes the number of common shares represented by each receipt from four to one, while the available summary does not state a publicly announced purpose for the move. The announcement therefore does not support describing the change as a measure to boost liquidity or improve trading. The ratio adjustment is the focus of the news, as it changes the relationship between the depositary receipt and the company's common shares. The available summary included no further details on when the change would take effect or how it would be implemented for receipt holders.
The company said the ratio change would be implemented through an amendment to its Third Amended and Restated Deposit Agreement. The agreement sets the framework for the relationship between the depositary receipts and the common shares they represent, while the published summary provides only the mechanism for amending it. The summary did not state an effective date, any steps receipt holders would need to take, or how any fractions resulting from the ratio change would be handled. It also gave no details on the effect of the amendment on the value of an investor's holding or the number of receipts held. Those aspects therefore remain unspecified in the information available on the announcement.
In the market, Embraer shares listed in New York under the ticker EMBJ closed at $75.91 on October 29, 2026, according to EL7 data. The stock closed at $72.11 on October 28, and $72.73 on October 27, and $71.07 on October 26. Before that, it ended the October 23 session at $70.84. These closing prices show the stock's movements during the sessions cited, but do not establish that the change to the depositary receipt ratio, announced the following day, caused the price increase. The available data here do not include the daily trading range or opening price.
Embraer's common shares trade on Brazil's B3 exchange under the ticker EMBJ3, while its American depositary receipts are listed on the New York Stock Exchange under the ticker EMBJ, according to the investor relations ownership structure page. This distinction puts the change in context: the announcement concerns the number of common shares represented by each depositary receipt, while each security continues to have a different market and trading symbol. The announcement summary did not mention a change to the listing or trading symbols. The specific information in the announcement is therefore limited to the shift from a receipt representing 4 common shares to one representing a single share.
The announcement follows strong results the company recorded in the second quarter of 2026. Revenue totaled $2.2 billion between April and June, a record for the period, while net income attributable to shareholders reached $212.6 million, according to the earnings announcement. In the second quarter of 2025, net income attributable to shareholders was $78.6 million, and ADS earnings per share were $0.4283. These figures provide financial background on the company ahead of its third-quarter results, but do not explain why it changed the depositary receipt ratio. The ratio announcement did not link the change to the company's quarterly results.
Embraer set November 10, 2026, as the date for announcing its third-quarter results, according to its investor relations calendar, making it the company's next published financial event. The available announcement on the depositary receipt ratio change does not specify when the change will take effect or provide other implementation details for investors. The summary also did not say whether the company would issue further information on the timing or procedures for holdings. The quarterly results date therefore remains the next specified date in the published information, while no effective date for the ratio adjustment has been stated.