MTU Aero Engines (MTX) Q1 2025 earnings summary

Executive summary

• Revenues rose 25% year-over-year to nearly €2.1 billion in Q1 2025, with adjusted EBIT up 38% to €300 million and adjusted net income up 41% to €221 million, driven by strong OEM and MRO growth.

• GTF Advantage engine received FAA certification in February 2025, with initial deliveries to Airbus expected later in the year.

• Expanded MRO footprint in China and North America, including new facilities and agreements, increasing capacity and service offerings.

• Passenger traffic and RPK continued to grow, especially in Asia Pacific and Europe, with load factors at 81%.

• Order backlog stood at €27.7 billion at quarter-end, with the largest share from Geared Turbofan engines.

Financial highlights

• Adjusted revenues: €2,092 million (+25% YoY); adjusted EBIT: €300 million (+38% YoY); adjusted net income: €221 million (+41% YoY); adjusted free cash flow: €150 million (>300% YoY).

• Adjusted EBIT margin improved to 14.3% from 13.0% year-over-year.

• EPS adjusted rose to €3.99 from €2.93 (+36% YoY).

• Group order book decreased 4% to €27.7 billion as of March 31, 2025.

• EBITDA (reported) increased 52% to €417 million; adjusted EBITDA up 33% to €392 million.

Outlook and guidance

• 2025 revenue forecast revised for exchange rates; expected between €8.3 and €8.5 billion.

• Anticipates mid-teens percentage growth in adjusted EBIT and net income; free cash flow guidance of €250–300 million.

• Guidance excludes potential impacts from volatile global customs/tariff situation.

• Commercial OE and MRO segments forecasted to grow mid to high teens %; military up mid to high single digit %.