MTU Aero Engines raises 2025 guidance; reports record revenues

MTU Aero Engines has raised its guidance for 2025, as the German aerospace company anticipates a lower exchange rate of the euro against the US dollar.

The guidance is based on an anticipated exchange rate of €1.05 to $1 instead of the previous guidance of €1.10. The Munich-based company now expects revenue for the year to range between €8.7bn ($9.1bn) and €8.9bn ($9.3bn). Revenues had previously been forecast to be between €8.3bn ($8.7bn) and €8.5 billion ($8.9bn).

Fourth quarter free cash flow totalled €30 million ($31.3 million), missing its €45 million ($46.9 million) guidance. The company said its free cash flow was impacted by the geared turbofan (GTF) fleet management plan as well as the ongoing supply chain issues. 

MTU revenue increased from €1.7bn ($1.8bn) in the fourth quarter of 2023 to €2.1bn ($2.2bn) in 2024. In addition, full year revenues were up 38% to €7.4bn ($7.7bn) and adjusted revenues were up 18% to €7.5bn ($7.8bn) — meeting its guidance of €7.3-7.5bn ($7.6-7.8bn) in revenues for 2024. 

“The fact that we have set these records despite the challenges posed by the geared turbofan fleet management plan and despite ongoing supply chain volatility is an unequivocal statement of MTU’s capabilities,” says Lars Wagner, CEO of MTU Aero Engines AG.

Fourth quarter net income was down to €143 million ($149.2 million), compared to €215 million ($224.3 million) in the fourth quarter of 2023. 

Commercial maintenance (MRO) saw the highest increase, with adjusted revenue up 20% to €5.1bn ($5.3bn). Geared turbofan (GTF) engine maintenance revenue share was 31%, slightly below the anticipated 35%.

Among the revenue drivers in commercial maintenance were the GE90 for the Boeing 777 aircraft, the V2500 which is used in the classic A320 family, the GEnx for Boeing’s Dreamliner, and the engine leasing and asset management business.

Adjusted revenue in the commercial engine business rose 15% from €1.7bn ($1.77bn) to €1.9 billion ($1.99bn). The company said that alongside Geared Turbofan engines, spare and leasing engines drove sales in the series business. In the spare parts business, mature widebody and narrowbody engines were the main drivers of revenue growth.

In the company's OEM business, MTU generated adjusted revenue of €2.5bn ($2.62bn), an increase of 14% on the previous year.

Adjusted EBIT for 2024 was up 28% on the previous year’s figure of €818 million ($858.9 million), exceeding the one-billion-euro mark for the first time at €1.05bn ($1.1bn). The adjusted EBIT margin was 14%, compared with 12.9% in 2023. Adjusted net income rose 29%, reaching a new high of €764 million ($802.2 million).

MTU’s order backlog was €28.6bn ($29.4bn) at the end of 2024, up 17% compared to the year prior. The majority of orders were for the Pratt & Whitney GTF engine family, especially the PW1100G-JM, and the V2500.

The company plans propose a dividend of €2.20 ($2.31) per share to the annual general meeting on May 8, 2025. This is a 10% increase on the previous year.

As of the end of the quarter, the company's net financial debt was €1.1bn ($1.2bn) and total assets and liabilities were €12.5bn ($13bn). The company held cash and cash equivalents of €1.75bn ($1.8bn) and equity was €3.4bn ($3.5bn).