German engine manufacturer MTU Aero Engines AG has said it expects continued strong growth and increased earnings over the 2025 fiscal year.
The company anticipates revenue between EUR 8.3 and EUR 8.5 billion, with adjusted earnings before interest and tax (EBIT) increasing in the low-to-mid teens percentage range. Adjusted net income is projected to rise in line with adjusted EBIT.
MTU CEO Lars Wagner said: “We will maintain MTU’s record performance in 2025. The Company has excellent future prospects that will be reflected in growth across all business areas.”
The commercial OEM business is predicted to experience the strongest growth, with an organic increase in the mid-teens percentage range.
Organic growth in revenue from commercial maintenance is estimated to be in the low-to-mid teens percentage range, with Geared Turbofan MRO accounting for approximately 40%.
The spare parts business is also expected to see organic revenue growth in the low-teens percentage range.
Despite the continued cash flow impact of the Geared Turbofan fleet management plan, a programme designed to deal with a number of technical issues that have emerged with some engines, MTU anticipates free cash flow in the low triple-digit million euro range for 2025
“As planned, free cash flow will continue to be affected by the Geared Turbofan fleet management plan next year,” said Peter Kameritsch, CFO of MTU Aero Engines AG. “We are therefore keeping our strict cash management unchanged. This also has an effect on our dividend proposal for the 2024 fiscal year.”
MTU’s order backlog was EUR 24.4 billion at year-end 2023, compared with EUR 22.3 billion at year-end 2022.
The majority of orders were for Geared Turbofan engines for the PW1000G family, especially the PW1100G-JM and the V2500.
“Purely arithmetically, that is equivalent to more than three years’ capacity and underscores MTU’s good market position,” said Wagner.
MTU’s electric propulsion concept: the Flying Fuel Cell.
