MTU Aero Engines reports strong growth in Q3
October 24, 2024
MTU Aero Engines has posted significant growth in both revenue and earnings during the first nine months of 2024.
The German aerospace company saw its adjusted revenue increase by 14%, rising from €4.6 billion to €5.3 billion year-on-year.
Adjusted operating profit also surged, climbing 25% to €744 million (compared to €597 million in the same period in 2023), with the adjusted EBIT margin improving from 12.8% to 14.0%.
Additionally, adjusted net income rose 23% to €541 million, up from €438 million in the previous year.
Revenue growth was reported across all business areas. The military sector led the way with a 16% increase, with revenue rising from €367 million to €426 million.
This growth was primarily driven by demand for engines such as the TP400-D6, used in the A400M, and the EJ200 engine for the Eurofighter. The New Generation Fighter Engine for Europe’s next-generation fighter jet programme also contributed significantly.
MTU’s commercial maintenance division saw a 15% rise in adjusted revenue, reaching €3.6 billion. Key contributors included the GE90 engine for Boeing 777 aircraft, the V2500 for the Airbus A320 family, and the GEnx engine for the Boeing Dreamliner, along with growth in engine leasing and business/regional aircraft engines.
In the commercial engine business, adjusted revenue increased by 9%, totalling €1.4 billion. Organic revenue in the commercial series segment rose by more than 20%, with strong demand for the Geared Turbofan and industrial gas turbines. Spare parts revenue also performed well, with high single-digit growth, driven by engines such as the V2500, PW2000, and GEnx for widebody aircraft, as well as engines for business jets.
MTU’s robust performance highlights the continued demand for its military and commercial aviation solutions across global markets.
“We seize all the opportunities the market has to offer. We also meet the ongoing challenges presented by the market with appropriate responses,” summarizes Lars Wagner, CEO of MTU Aero Engines.
“This meant that the first nine months of 2024 were so successful that we can achieve our earnings target of €1 billion one year earlier than originally planned.”
MTU had aimed to reach the one-billion target in 2025. The company is now forecasting adjusted EBIT of a slightly over €1 billion for 2024. “We are using this positive momentum to further expand MTU’s future viability,” Wagner added.
