MTU Aero Engines (MTX) Q3 2024 earnings summary

Executive summary

• Adjusted group revenues for the first nine months of 2024 reached €5.3 billion, up 14% year-over-year, with growth across all business segments.

• Adjusted EBIT rose 25% to €744 million, driven by strong MRO performance and a favorable OEM business mix.

• Net income adjusted increased 23% to €541 million.

• EBIT for 2024 is now expected to exceed €1 billion, achieving the 2025 target a year early.

• Strong MRO demand, high engine lease rates, and robust air traffic supported profitability and guidance upgrades.

Financial highlights

• OEM revenues increased 11% to €1.8 billion, with military up 16% and commercial up 9%.

• Adjusted OEM EBIT rose 19% to €444 million, margin at 24.7%.

• MRO revenues grew 15% to €3.6 billion; adjusted EBIT up 35% to €300 million, margin 8.4%.

• Free cash flow was €213 million for nine months, down 17% year-over-year due to supply chain bottlenecks and fleet management plans.

• Cash and cash equivalents increased to €1,910 million as of September 30, 2024.

Outlook and guidance

• Revenue for 2024 forecasted between €7.3–7.5 billion, with all segments contributing to growth.

• Adjusted EBIT for 2024 now guided to slightly over €1 billion, up from previous €950–980 million.

• Free cash flow anticipated in the low triple-digit million euro range.

• Organic revenue growth expected: commercial series (low-to-mid twenties %), spare parts (low teens %), commercial maintenance (mid-to-high teens %), military (low-to-mid teens %).

• Q4 expected to see revenues of ~€2.1 billion, with EBIT margin in the high 13% range.