Boost in performance for MTU this year - Positive Developments in MTU's Performance
### MTU Aero Engines: Strong Performance and Optimistic Outlook in Civil Aviation
MTU Aero Engines, based in Munich, has reported a robust financial performance in the first half of 2025, setting the stage for an ambitious year ahead. The company has raised its revenue guidance for 2025, expecting it to be between €8.6 and €8.8 billion, a significant increase from the initial forecast of €8.3 to €8.5 billion.
The company's adjusted EBIT is expected to increase in the low to mid-twenties percentage range, up from the earlier mid-teens percentage range guidance. MTU also anticipates a free cash flow of between €300 and €350 million for 2025, higher than the previous range of €250 to €300 million.
In the first half of 2025, MTU Aero Engines reported an adjusted revenue of €4.1 billion, marking a 21% increase from the previous year. Adjusted EBIT rose by 40% to €657 million, with an adjusted EBIT margin of 15.9%. Adjusted net income increased by 40% to €479 million. Free cash flow doubled to €212 million compared to the same period last year.
The commercial engines segment saw a strong increase of 27%, while commercial maintenance was up by 22%. These growth figures underscore MTU's strong position in the civil aviation sector.
Despite some challenges with supply chain issues, particularly with small parts due to external factors like the fire at the SPS facility in the U.S., MTU has noted improvements in this area. The company remains optimistic about its future performance, supported by its strong financial position and improvements in both the OEM and maintenance segments.
In other news, the outgoing CEO Lars Wagner expects MTU to meet its recently raised revenue target of 8.6 to 8.8 billion euros this year. Wagner will be leaving the company in the fall to take over the leadership of Airbus' civil division. His successor will be Johannes Bussmann, who previously served as CEO of Lufthansa Technik and joined MTU from TÜV SÜD in mid-July.
MTU partners with US companies Pratt & Whitney and GE Aerospace in developing civil engines. However, it has been announced that approximately 3,000 turbofans of the geared fan type will be recalled and need to be sent back to the workshop due to defective powder metal used in their production by partner Pratt & Whitney. The costs associated with this recall have already been booked in MTU's 2023 financial statements.
Despite this setback, MTU remains committed to its partnerships and is confident in its ability to address and overcome any challenges that may arise. The company's strong performance and optimistic outlook in the civil aviation sector are a testament to its resilience and adaptability.
- MTU Aero Engines, with its strong financial performance, is actively pursuing a policy to expand vocational training programs within its organization, aiming to foster a skilled workforce and secure its competitiveness in the technology-driven aviation industry.
- Recognizing the growing demand for skilled technicians in the aviation sector, MTU Aero Engines is also investing in vocational training partnerships with local community programs, offering resources and expertise to equip the next generation with the necessary vocational skills for the industry.
- In addition to its focus on future workforce development, MTU Aero Engines is simultaneously exploring opportunities in other sectors such as transportation and finance, planning to broaden its presence and optimize its operations through strategic investments and technology integration.
