European engine manufacturer MTU Aero Engines reported its first quarter 2024 revenue was up 7% YoY to €1.65bn. Its net profit was down 6% YoY to €126 million and its basic earnings per share were down 5% to €2.35 per share. Its adjusted EBIT was up 3% from €212 million to €218 million.
Narrowing in on its OEM business revenues, which was up 2% YoY to €557 million in the first quarter, its military engine business revenues had shown a double-digit increase at 21% YoY to €124 million. The company said this was mostly driven by the EJ200 engine for the Eurofighter jets. Meanwhile, its commercial engine business revenues were down 3% YoY to €433 million and its commercial maintenance revenues were up 12% to €1.1bn.
""MTU managed to match the record level of the first quarter of 2023, despite the challenges of the geared turbofan fleet management plan and the continued challenging supply chain situation,"" said MTU Aero Engines CEO Lars Wagner.
In its full year 2023 report, MTU Aero Engines said its recall and inspection of up to 3,000 geared turbofan engines had impacted the company by approximately €1bn. The geared turbofan fleet management, triggered after a ""manufacturing problem with a component produced by [its] program partner Pratt & Whitney."" Their risk- and revenue-sharing agreement had led MTU Aero Engines being impacted with its share of the earnings and risks associated with the engines is 18%.
Its total assets and liabilities were up 2% from the end of 2023 through to the end of the first quarter of 2024 at €10.4bn. Considering the same time period, its net financial debt was up 3% to €648 million, and its cash and cash equivalents were down 3% to €854 million.
Its free cash flow was down from €93 million in the last period to €16 million in the first quarter of 2024. The company said it reflects the ""high working capital requirements resulting from the high volume of work and the extended turnaround times in the commercial maintenance business.""
Its order backlog was up 4% to €25.4bn, with the largest proportion of orders are for geared turbofan engines for the PW1000G family. Wagner added: ""What is important now is to focus on working through the orders swiftly – naturally without compromising on our high quality standards.""
The company confirmed its guidance for the full year of 2024, aiming for revenues of €7.3-7.5bn and predicts its adjusted EBIT margin will be over 12% in 2024.
MTU first quarter revenue up, bolstered by Eurofighter jet engines business
