MTU Aero Engines recorded a growth of 27% in revenue reaching €3.82 bn with an operating profit of €448 million in the first nine months of 2022. MTU’s revenue increased in both commercial maintenance and the commercial engine business in the first nine months. In the commercial engine business, revenue increased by 24% to €946 million. The company recorded a net income of €319 million.
Reiner Winkler, CEO of MTU Aero Engines, said: “Based on this good performance and the current situation, which includes a favorable development of the US dollar exchange rate, we can increase our forecast today. We now expect revenue for the year to be between €5.4 and €5.5 billion. Adjusted EBIT should rise in the low thirty-percent range. We anticipate that the cash conversion rate will be between 60% and 70% in 2022.”
Previously, MTU had forecast mid-twenty-percent €5.2 and €5.4 billion for full-year 2022. The increase in adjusted EBIT was expected to be in the mid twenty-percent range. The company still assumes that adjusted net income will develop in line with the operating profit in 2022.
In commercial maintenance, revenue grew 32% to €2.64 bn, up from €2.01 billion in the first nine months of 2021. The main revenue drivers were the PW1100G-JM, which is used in the A320neo, and the V2500 for the classic A320 family.
Peter Kameritsch, CFO said: “So far, Geared Turbofan maintenance has been below our expectations but it should pick up in the fourth quarter. Overall, we can raise our guidance for MRO revenue in 2022. Spare parts are therefore clearly within our expectations for the full year. A positive trend came from narrowbody and cargo aircraft engines, as well as the GEnx for the Dreamliner and engines for business jets. In the series business, we are seeing a rise in GTF deliveries while the recovery of other programs remains slightly weaker.”
MTU recorded that the main revenue driver in the commercial engine business was the PW1100G-JM with an order backlog of €25.96 bn at the end of September 2022, with the majority of orders for V2500 and the Geared Turbofan engines of the PW1000G family, especially the PW1100G-JM.
The OEM business and the MRO business both posted higher profits in the first nine months. In the OEM business, MTU’s earnings increased by 24% to €251 million, up from €202 million in the first nine months of 2021. “In both segments, the business mix had a positive impact on earnings. In addition, MTU is benefiting from the present favorable US dollar/euro exchange rate,” said Kameritsch.
At the end of the quarter, MTU’s research and development expenses were up 18% year-on-year at €192 million with a free cash flow of €219.