Company Reports

MTU’s first-half revenue rose 13% to EUR 4.7 billion, led by MRO, while adjusted EBIT increased 5% to EUR 692 million and margin fell 110 basis points to 14.8%. Free cash flow rose 39% to EUR 294 million, driving a 2026 cash-conversion upgrade to 50%-60%.

MTU Aero Engines, a leading engine component supplier and independent maintenance, repair, and overhaul provider, is well positioned to benefit from the narrow-body aircraft industry's long-term growth outlook.

MTU Aero Engines reported first-quarter revenue up 7% to EUR 2.2 billion, adjusted EBIT up 6% to EUR 320 million (14.2% margin), and free cash flow up 18% to EUR 177 million, with management reaffirming full-year guidance despite volatility from the war in the Middle East.

MTU Aero Engines reported 2025 revenue of EUR 8.7 billion, up 16%, with adjusted EBIT of EUR 1.35 billion and a 15.5% margin. Free cash flow was EUR 378 million despite ongoing GTF-related cash outflows. Order backlog reached EUR 29.5 billion.

MTU Aero Engines posted outstanding third-quarter results, with revenue up 19% to EUR 6.3 billion and adjusted EBIT up 34% to EUR 995 million. The 15.9% margin marked a record high, driven by robust aftermarket demand, favorable pricing, and continued mix improvement across programs.

MTU Aero Engines, a leading engine component supplier and independent maintenance, repair, and overhaul provider, is well positioned to benefit from the narrow-body aircraft industry's long-term growth outlook.

MTU Aero Engines' first-half adjusted EBIT rose 40% to EUR 655 million on 21% revenue growth, driven by strong commercial OEM mix and improving maintenance, repair, and overhaul, or MRO, profitability. Free cash flow reached EUR 212 million despite a USD 150 million outflow tied to GTF compensation.

Wide-moat MTU Aero Engines reported a robust first quarter, with revenue rising 25% year on year to EUR 2.1 billion and adjusted EBIT up 38% to EUR 300 million (14.3% margin), benefiting from a favorable commercial original equipment manufacturer mix with a higher share of spare parts, and strong maintenance, repair, and overhaul volumes. Free cash flow was a solid EUR 150 million, supported by seasonal working capital tailwinds, though management flagged normalization ahead. MTU revised its 2025 revenue guidance downward to EUR 8.3 billion-EUR 8.5 billion, from the previous range of EUR 8.7 billion-EUR 8.9 billion, citing only foreign-exchange translation effects. The updated forecast reflects a new EUR/USD assumption of 1.10 versus 1.05 previously. Importantly, EBIT, net income, and free cash flow targets remain unchanged, reflecting management’s confidence in cost controls and mix to absorb translation effects.

We raise our fair value estimate for wide-moat MTU Aero Engines to EUR 416 from EUR 300, reflecting stronger growth assumptions for the aftermarket and defense segments in both the midterm and through Stage II expansion from 5.0% to 5.5%. Despite solid demand for new aircraft, deliveries remain constrained by persistent supply chain challenges. This extends the service life of older aircraft, driving higher demand for maintenance and spare parts. We expect both the OEM and MRO segments to benefit from maintained aftermarket demand, supporting years of recurring, profitable revenue as global air traffic expands.

MTU Aero Engines, a leading engine component supplier and independent maintenance, repair, and overhaul provider, is well positioned to benefit from the narrow-body aircraft industry's long-term growth outlook.

Wide-moat MTU Aero Engines delivered a strong 2024 performance, with record revenue, robust EBIT growth, and healthy aftermarket demand. MTU delivered strong revenue growth, reaching EUR 7.5 billion, an 18% increase compared with 2023. Growth was broad-based across all business segments, driven by higher aircraft utilization, strong demand for engine maintenance, and increased production volumes for OEM engines. The commercial maintenance, repair, and overhaul, or MRO, segment was the biggest contributor, with revenue rising 20% to EUR 5.1 billion, while the OEM segment grew by 14% to over EUR 2.5 billion.

Wide-moat MTU achieved a 14% increase in adjusted group revenues, reaching EUR 5.3 billion, with strong contributions from all business segments. The company raised its EBIT forecast to exceed EUR 1 billion, achieving its 2025 target a year early due to strong results and positive market conditions. We are increasing our fair value estimate to EUR 300 from EUR 225, to incorporate new management guidance.

MTU Aero Engines, a leading engine component supplier and independent maintenance, repair, and overhaul provider, is well positioned to benefit from the narrow-body aircraft industry's long-term growth outlook. Despite covid-19's impact on short- to medium-term demand, air travel has been resilient with a consistent recovery driven by leisure travel, demand for narrow-body aircraft, and China's reopening.

MTU Aero Engines reported robust financial performance in first-half 2024, with notable growth in revenue and earnings despite supply chain disruptions that continue to affect the broader aerospace industry. MTU’s order backlog was EUR 25.2 billion at the end of the first half of 2024, up from EUR 24.4 billion at the end of 2023. Most of the orders were for the PW1100G-JM and the V2500. Adjusted revenue increased by 10%, with adjusted EBIT margin increasing to 13.7% from 13.0%.

Wide-moat MTU Aero Engines reported strong first-quarter results, aligned with management guidance. Our fair value estimate is unchanged.

MTU Aero Engines, a leading engine component supplier and independent maintenance, repair, and overhaul provider, is well positioned to benefit from the narrow-body aircraft industry's long-term growth outlook. Despite covid-19's impact on short- to medium-term demand, air travel has been resilient with a consistent recovery driven by leisure travel, demand for narrow-body aircraft, and China's reopening.

Wide-moat MTU Aero Engines reported another year of record results and confirmed midterm guidance, although it has cut dividends in the short term to account for the headwinds related to its geared turbofan engines. We maintain our fair value estimate, as we expect that these new GTF issues will have a limited impact on EBIT and cash flow.

Wide-moat MTU Aero Engines confirmed full-year guidance despite headwinds related to new issues with the performance of geared turbofan engines. We maintain our fair value estimate on the back of management's preliminary assessment that these new issues will have a limited impact on EBIT and cash flow, but we have growing concerns about reputational costs affecting future share on Airbus' A320neo.

MTU Aero Engines, a leading engine component supplier and independent maintenance, repair, and overhaul provider, is well positioned to benefit from the narrow-body aircraft industry's long-term growth outlook. Despite COVID-19's impact on short- to medium-term demand, air travel has been resilient with a consistent recovery driven by leisure travel, demand for narrow-body aircraft, and China's reopening.

On Sept. 11, MTU Aero Engines updated guidance related to previously announced engine issues and increased the total number of engines to be repaired. After incorporating the higher figure into our model we are reducing our fair value estimate to EUR 225 from EUR 252 previously. Our wide moat rating is unchanged.