MTU Aero Engines has announced impressive financial results for the first nine months of 2024, marking significant growth across all business areas. The company reported an adjusted revenue increase of 14%, rising from €4.6 billion to €5.3 billion. Adjusted operating profit also saw a notable 25% increase, reaching €744 million, compared to €597 million in the same period last year. The adjusted EBIT margin improved from 12.8% to 14.0%, while adjusted net income rose to €541 million, a 23% increase from €438 million in 2023.
Lars Wagner, CEO of MTU Aero Engines AG, emphasized the company’s proactive approach to capitalizing on market opportunities. “We seize all the opportunities the market has to offer. We also meet the ongoing challenges presented by the market with appropriate responses,” he stated. This positive performance has enabled MTU to forecast an adjusted EBIT of over €1 billion for 2024, a target the company originally aimed to achieve by 2025.
Revenue Growth Across All Business Areas
MTU experienced revenue growth in every segment during the first nine months of 2024. The military sector led this expansion, with adjusted revenue climbing 16% from €367 million to €426 million. Key drivers included the TP400-D6 engine for the A400M aircraft, the New Generation Fighter Engine for upcoming European fighter jets, and the EJ200 engine for the Eurofighter.
In the commercial maintenance sector, adjusted revenue grew by 15%, reaching €3.6 billion, primarily driven by the GE90 engine for the Boeing 777, the V2500 for the A320 family, and the GEnx engine for the Dreamliner. The commercial engine business also saw a 9% increase, totaling €1.4 billion.
Strong Order Backlog
MTU’s order backlog stood at €23.4 billion at the end of September, down slightly from €24.4 billion at the end of 2023. The backlog is heavily weighted towards Geared Turbofan engines, particularly the PW1000G family and the V2500.
Enhanced Earnings in All Segments
The company recorded higher earnings in both its OEM (Original Equipment Manufacturer) and MRO (Maintenance, Repair, and Overhaul) segments. In the commercial maintenance sector, adjusted EBIT increased by 35%, reaching €300 million, with the adjusted EBIT margin rising from 7.2% to 8.4%. CFO Peter Kameritsch noted that factors contributing to this growth included an optimal maintenance mix and improved operational efficiency.
In the OEM sector, adjusted EBIT grew by 19%, totalling €444 million, reflecting a profitable revenue mix and high demand for spare parts and military engines.
Investment in Innovation and Future Viability
Research and development expenses rose 14% to €254 million, reflecting MTU’s commitment to innovation and the vision of achieving zero-emission flight. Wagner explained that the company is focusing on enhancing the efficiency of its Geared Turbofan programs and developing future engine technologies.
MTU’s free cash flow for the first nine months was €213 million, slightly down from €257 million in 2023, impacted by supply chain challenges and high working capital needs. The company is implementing strict cash management measures to address these issues.
Workforce Growth and Future Outlook
MTU’s workforce expanded by 4% to 12,634 employees by the end of September 2024. Looking ahead, the company projects revenue between €7.3 billion and €7.5 billion for fiscal year 2024, with growth expected in all business areas. The highest revenue increase is anticipated in the commercial series business, alongside strong growth in the spare parts and military sectors.
MTU Aero Engines remains optimistic about its trajectory, with adjusted EBIT anticipated to exceed €1 billion for 2024. The company expects adjusted net income to align with this growth and free cash flow to be in the low triple-digit million euro range.
As MTU continues to navigate the complexities of the aerospace industry, its robust performance and strategic investments position it well for sustained growth and innovation in the years ahead.
