MTU Aero Engines (MTX) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw adjusted revenue rise 7% to €2.244 billion, adjusted EBIT up 6% to €320 million, and adjusted net income up 3% to €229 million, driven by military and commercial MRO segments.

• Free cash flow increased 18% to €177 million, and the order backlog grew 7% to €31.6 billion.

• Guidance for 2026 is confirmed, supported by a strong order book and resilient business fundamentals, despite geopolitical uncertainties.

• Strategic expansion into the UAV propulsion market through the acquisition of AeroDesignWorks, supporting European technical independence.

• Proactive management of macroeconomic and supply chain challenges, leveraging a diversified product portfolio.

Financial highlights

• Adjusted EBIT margin was 14.2%, slightly down from 14.3% in Q1 2025.

• Adjusted earnings per share increased 4% to €4.14.

• EBITDA (adjusted) rose 6% to €415 million.

• Free cash flow up 18% to €177 million, driven by lower investing cash flow and higher dividend income.

• Net capital expenditure on property, plant, and equipment was €50 million, down 34% year-over-year.

Outlook and guidance

• 2026 guidance confirmed: sales €9.2–9.7 billion, adjusted EBIT €1.35–1.45 billion, cash conversion rate 45–55%.

• Growth expected across commercial OE, spare parts, military, and MRO segments, with mid to high teens percentage increases in key revenue drivers.

• GTF MRO revenue share expected at 40–45%.