MTU Aero Engines AG
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5-year stock timeline
2026 (H1–Q3) — Strong start to 2026; guidance unchanged, cash-conversion raised
MTU reported continued revenue and earnings growth in Q1 and H1 2026, maintaining full-year revenue and adjusted EBIT guidance for 2026 (adjusted revenue target €9.2–9.7bn; adjusted EBIT target €1.35–1.45bn) while raising free cash flow and cash-conversion guidance to 50–60% from 45–55% previously.
Market and investor perception shifted toward a confident growth narrative with improving cash conversion. MTU was treated as a recovering, cash-generative aero aftermarket and OEM supplier benefiting from airline traffic recovery and GTF MRO expansion. Geopolitical uncertainty in the Middle East was acknowledged, though management emphasized operational resilience.
Q1 2026 delivered adjusted revenue of €2.2bn, up 7% year-over-year, with adjusted operating profit of €320m versus €300m in Q1 2025. H1 2026 adjusted revenue reached €4.7bn, up 13% year-over-year, and adjusted operating profit was €692m compared to €657m in H1 2025. Cash conversion rate stood at approximately 59% in H1 2026. Full-year 2026 guidance targeted adjusted revenue of €9.2–9.7bn and adjusted EBIT of €1.35–1.45bn [2][3][4][7][8].
2025 (full year and mid-year moves) — Record 2025 and MRO capacity expansion
MTU closed 2025 on a strong growth trajectory, with company messaging in 2026 referencing FY2025 achievements and 2025 MRO expansions. During 2025, MTU and partners expanded MRO capability, including MTU Maintenance adding PW800 MRO capabilities and agreements to increase GTF MRO shop capacity with Pratt & Whitney and RTX partners.
Investors increasingly viewed MTU as a beneficiary of post-pandemic air travel recovery and as a major MRO consolidator for next-generation engines including GTF and PW800. This supported a growth-plus-higher-quality-earnings narrative rather than a COVID-era cyclical recovery story alone.
MTU disclosed record adjusted revenue for 2025, with company guidance for FY 2026 raised on this basis. MTU Maintenance launched PW800 MRO capability at Ludwigsfelde and expanded GTF shop capacity to approximately 600 shop visits annually under network collaboration with Pratt & Whitney and RTX [6][9][20].
2024 — Record adjusted revenue and margin improvement for FY2024
MTU reported record adjusted revenue and earnings for fiscal 2024: adjusted revenue of approximately €7.5bn and adjusted EBIT of roughly €1.05bn, with adjusted net income of €764m.
This reinforced a transformation from a mid-cycle aftermarket supplier to a larger, higher-margin company driven by strong commercial engine aftermarket demand and higher OEM series work. Investor sentiment shifted to "profitable growth" and structural recovery rather than temporary rebound.
FY2024 adjusted revenue reached €7.5bn, up approximately 18% versus 2023, with adjusted EBIT of €1.05bn and adjusted net income of €764m. Adjusted EBIT margin expanded to approximately 14.0% from 12.9% in 2023 [16][22][27].
2023 — Large year-over-year growth; exceptional Geared Turbofan fleet management charge; dividend resumed and raised
MTU reported strong adjusted growth in 2023 with adjusted revenue of €6.3bn and adjusted EBIT exceeding €800m. However, reported figures included exceptional charges related to a GTF fleet-management plan with an approximate €1bn impact, producing reported negative EBIT and a reported net loss. The Supervisory Board proposed dividend actions reflecting varied payout levels across prior-year reporting periods.
Investors parsed adjusted versus reported numbers. Underlying operational recovery and aftermarket momentum were evident, but one-off provisions for GTF fleet management introduced uncertainty and focus on future warranty and repair exposure. The growth story remained intact but with episodic provisioning risk.
2023 adjusted revenue reached €6.3bn, up 19% year-over-year, with adjusted EBIT exceeding €800m. The GTF fleet-management plan created an approximate €1bn effect, resulting in reported 2023 EBIT of roughly –€161m and a reported net loss of approximately €97m. Dividend proposals and payouts varied by year as disclosed in investor relations materials [18][19][23][25].
2022 — Strong rebound as air traffic recovers; revenue up materially from 2021
MTU executed a clear recovery from pandemic troughs. Fiscal 2022 adjusted revenue rose to approximately €5.3bn, up roughly 27% versus 2021, with company guidance raised for 2023 and a dividend proposal reflecting improved earnings.
Market perception shifted from pandemic uncertainty to recovery and normalization. MTU was seen as a cyclical recovery play with durable aftermarket revenue tailwinds, and dividend proposals signaled return-of-capital confidence.
FY2022 adjusted revenue reached €5.3bn compared to €4.2bn in 2021. Adjusted EBIT margin rose to approximately 12.3% from 11.2% in 2021. A dividend proposal of €3.20 per share for 2022 was announced for AGM consideration [24][30].
2021 — Pandemic era trough and early recovery indicators
2021 reflected ongoing COVID pandemic impact on air travel and OEM and MRO demand. Passenger traffic remained well below 2019 levels, with FY2021 revenue around €4.2bn and modest dividend as management emphasized resilience and cost discipline.
Investors treated MTU as a cyclical, COVID-impacted industrial company. Short-term recovery remained uncertain, but long-term franchise value in engine MRO and OEM participation was viewed as intact. Conversation centered on trough valuation, cash conservation, and eventual demand normalization.
FY2021 adjusted revenue approximated €4.2bn. Dividend for 2021 was €2.10 per share, paid in 2022 reporting, as part of gradual return to shareholder distributions as results permitted [21][30].
Key risks and downside factors
MTU Aero Engines is a mid-sized European manufacturer and maintenance, repair and overhaul provider that participates in original equipment manufacturer programs alongside global competitors and competes in aftermarket services against specialized MRO operators. Its largest competitors are vertically integrated engine makers—Safran, Rolls-Royce, GE/GE Aerospace, and Pratt & Whitney/RTX—which leverage scale, existing customer bases and integrated service capabilities. Independent MROs and regional manufacturers such as Lufthansa Technik, StandardAero and ITP/Grupo compete on pricing and geographic reach. The company faces material exposure through risk-and-revenue-share contract structures, sensitivity to commercial aviation demand cycles, competitive and technological pressure from larger OEMs and their suppliers, and reliance on European regulatory frameworks and defense program funding.
- MTU faces meaningful exposure through long-term risk-and-revenue-share engine programs like GTF, where manufacturing or design issues can trigger substantial liabilities that flow directly into earnings and cash flow.
- Commercial aviation cyclicality creates demand risk through sustained airline capacity reductions, lower aircraft deliveries, or slower original equipment manufacturer production. Each of these scenarios materially reduces aftermarket maintenance, repair, and overhaul revenue alongside new-engine orders.
- Larger integrated aerospace OEMs and service providers—Safran, GE, Pratt & Whitney, and Rolls-Royce among them—possess greater R&D capacity than MTU. This scale advantage allows them to secure platform exclusivity and control aftermarket revenue streams, creating structural competitive pressure [MTU, 8].
- Regulatory shifts, geopolitical tensions, and reliance on defence programs create material risks for European suppliers. Changes to export controls, defence budget allocations, outcomes of major fighter and helicopter initiatives, or adjustments to subsidies and industrial policy can compress programme timelines and obscure revenue visibility [1], [2].
Competitive landscape
MTU Aero Engines occupies a middle tier in European aero-engine manufacturing and aftermarket services, competing against global engine primes on both new programs and technology while simultaneously defending aftermarket revenue from specialized independent MRO operators. Its competitive field divides into two distinct layers: the large global manufacturers (GE Aerospace, Pratt & Whitney/RTX, Rolls-Royce, Safran) who compete primarily on platform selection and production scale, and regional or independent service providers (Lufthansa Technik, StandardAero, ST Engineering) who compete on the quality and cost of maintenance, repair and overhaul work. The business carries several structural vulnerabilities. Revenue depends materially on winning and sustaining positions within large OEM partnerships, which expose the company to the cyclical patterns of airline demand. Supply-chain disruptions and raw-material cost movements can compress margins without corresponding pricing power. Contract concentration creates earnings volatility, while currency exposure affects both costs and reported results. Regulatory shifts in defense export controls or environmental compliance can unexpectedly limit access to certain markets or aftermarket revenue streams.
Private competitors
- StandardAero (large independent MRO — private or privately held ownership structures at times)
- ITP Aero (when under private/industrial ownership; regional European engine component specialist)
- AECC (some joint-venture or non-listed Chinese engine/component players operating as competitors in specific markets)
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Start Free TrialPerformance Figures of MTU Aero Engines AG
Relative Performance vs Benchmarks
| Period | MTU Aero Engines AG | vs DAX | vs S&P 500 (SPY) |
|---|---|---|---|
| 1M | +4.01% | +7.34% | +2.60% |
| 3M | +1.02% | +0.93% | -2.88% |
| 6M | +12.88% | +7.26% | -2.36% |
| 1Y | -5.37% | -8.47% | -23.06% |
| 3Y | +127.73% | +62.65% | +39.65% |
| 5Y | +92.04% | +26.70% | +1.80% |
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Start Free TrialHistorical valuation trends
How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.
| Period | P/E Ratio | P/S Ratio | P/B Ratio | P/CF Ratio |
|---|---|---|---|---|
| Current | 12.0 | 1.3 | 4.4 | 23.7 |
| 1Y ago | 24.7 | 2.6 | 5.5 | 29.7 |
| 3Y ago | 267.6 | 1.1 | 3.3 | 8.1 |
| 5Y ago | 41.4 | 1.8 | 3.9 | 15.4 |
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- MTU faces meaningful exposure through long-term risk-and-revenue-share engine programs like GTF, where manufacturing or design issues can trigger substantial liabilities that flow directly into earnings and cash flow.
- Commercial aviation cyclicality creates demand risk through sustained airline capacity reductions, lower aircraft deliveries, or slower original equipment manufacturer production. Each of these scenarios materially reduces aftermarket maintenance, repair, and overhaul revenue alongside new-engine orders.
- Larger integrated aerospace OEMs and service providers—Safran, GE, Pratt & Whitney, and Rolls-Royce among them—possess greater R&D capacity than MTU. This scale advantage allows them to secure platform exclusivity and control aftermarket revenue streams, creating structural competitive pressure [MTU, 8].
- Regulatory shifts, geopolitical tensions, and reliance on defence programs create material risks for European suppliers. Changes to export controls, defence budget allocations, outcomes of major fighter and helicopter initiatives, or adjustments to subsidies and industrial policy can compress programme timelines and obscure revenue visibility [1, 2].
Who are the main competitors of MTU Aero Engines AG?
- General Electric Company (GE Aerospace) (GE.NYSE)
- RTX Corporation (Pratt & Whitney) (RTX.NYSE)
- Rolls-Royce Holdings plc (RR.LSE)
- ST Engineering (ST Engineering Ltd) (S63.SG)
- StandardAero (parent private historically; listed comparators include HEICO Corporation as public aerospace MRO/parts peer) (HEI.NYSE)
When does MTU Aero Engines AG report earnings?
Key Metrics
Valuation Metrics
Profitability Metrics
Growth Metrics
Dividend history
Long-term record of paid dividends (amount per share and dividend yield at the time of payment).
| Year | Dividend | Yield at payment | Avg. yield |
|---|---|---|---|
| 2026 | 3.60 EUR | 1.13% | 1.36% |
| 2025 | 2.20 EUR | 0.67% | |
| 2024 | 2.00 EUR | 0.86% | |
| 2023 | 3.20 EUR | 1.40% | |
| 2022 | 2.10 EUR | 1.11% | |
| 2021 | 1.25 EUR | 0.65% | |
| 2020 | 0.04 EUR | 0.03% | |
| 2020 | 3.40 EUR | 2.65% | |
| 2019 | 2.85 EUR | 1.40% | |
| 2018 | 2.30 EUR | 1.67% | |
| 2017 | 1.90 EUR | 1.42% | |
| 2016 | 1.70 EUR | 2.04% | |
| 2015 | 1.45 EUR | 1.52% | |
| 2014 | 1.35 EUR | 1.99% | |
| 2013 | 1.35 EUR | 1.84% |
Earnings history & estimates
Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.
Historical earnings performance
Upcoming earnings report
Analyst estimates for upcoming periods
Key financial figures
Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 8.76B | 7.41B | 5.36B | 5.33B | 4.19B |
| Operating income (EBIT) | 1.25B | 882.00M | -239.00M | 546.00M | 408.00M |
| Net income | 1.02B | 633.00M | -102.00M | 331.00M | 222.00M |
| Free cash flow | 333.00M | 74.00M | 365.00M | 326.00M | 200.00M |
| Total assets | 13.22B | 12.48B | 10.20B | 9.23B | 8.30B |
| Equity | 4.31B | 3.36B | 2.86B | 3.03B | 2.68B |
| Net debt | 1.17B | 682.00M | 389.00M | 479.00M | 587.00M |
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