Embraer S.A. ( ERJ ) shares are trading lower on Monday. The company disclosed that the pending arbitration with Boeing Company ( BA ) and its affiliates has concluded.

As per the agreement, Boeing ( BA ) will pay Embraer ( ERJ ) $150 million. Notably, the arbitration is related to Boeing’s termination of the Master Transaction Agreement (MTA) worth $4.2 billion transaction in April 2020.

At that time, Embraer ( ERJ ) contended that Boeing ( BA ) wrongfully terminated the MTA, using false claims to evade the deal’s closure, and alleged that Boeing’s delays and violations stemmed from its own financial and operational issues.

Last month, Embraer ( ERJ ) disclosed a contract to sell up to six A-29 Super Tucano aircraft to the Uruguayan Air Force (FAU).

The deal includes one immediate purchase and a commitment for five more, with deliveries starting in 2025.

In the second quarter, Embraer’s adjusted free cash flow, excluding Eve, was negative $215 million due to increased working capital requirements to support a higher volume of deliveries in the second half of 2024.

Investors can gain exposure to the stock via AdvisorShares Dorsey Wright ADR ETF ( AADR ) and Clough Select Equity ETF ( CBSE ) .

Price Action: ERJ shares are down 3.69% at $35.59 at the last check Monday.

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