MTU Aero Engines expects further revenue growth for next year, anticipating between €8.3 and €8.5bn in full year revenue.
In its forecast on November 29, 2024, the company said free cash flow is expected to be in the low triple-digit euro range for the year, impacted by the continued geared turbofan engine issues as it executes its management plan next year.
“We are therefore keeping our strict cash management unchanged,” said MTU Aero Engines CFO Peter Kameritsch. “This also has an effect on our dividend proposal for the 2024 fiscal year.”
MTU plans to propose a dividend of €2.20 per share to the annual general meeting on May 8, 2025, which is 10% higher than the previous year. The company said this will once again balance MTU’s growth against the financial impact of the GTF engine issues.
Adjusted EBIT for year should increase in the low-to-mid teens, while adjusted net income is expected to rise in line.
MTU CEO Lars Wagner said the company will “maintain” its “record performance” next year, driven largely by its commercial engine business, which is expected to grow in the mid-teens in 2025.
In a presentation, management said the company’s commercial engine growth remains influenced by the ongoing supply chain constraints, but expects “solid growth” in narrowbody engines – particularly the V2500 engine. Management added that its engine leasing business will continue drive the company’s overall profitability.
Organic growth in revenue from commercial maintenance should be in the low-to-mid teens, with the GTF MRO accounting for around 40%. In addition, revenue growth in its spare parts segment is likely to be in the low teens in 2025.
The company confirmed its earnings forecast for 2024, with adjusted EBIT expected to exceed €1bn for the first time in the company’s history. Revenue for the company is expected to be €7.3 and €7.5bn for the full year.