MTU proposes dividend of two euros per share, shares fall 4%

MTU Aero Engines' executive board has proposed a dividend of two euros per share for the 2023 financial year. The company noted it will face high financial burdens from 2024 to 2026, relating to the GTF inspection program as well investment into next generation technologies. It said these factors ""limit the possibility of paying dividends at the current level in the years 2024 to 2026"" according to its current estimates. Its target of continuously increasing the payout ratios and reaching 40% adjusted net income has been suspended during the aforementioned period. The company's shares fell around 4% during premarket trading following the announcement. The company expects revenue to be between 7.3 and 7.5 billion euros ($7.9-8.1bn) for 2024 and forecasts an adjusted margin of over 12%. It also expects a free cash flow in ""the low three-digit million euro range."" The company will publish its results for the 2023 financial year and 2024 forecast on February 29, 2024.