Boeing Settles Deal Fallout With Embraer For $150M: Details

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 will pay Embraer $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 contended that Boeing 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 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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