MTU Aero Engines (MTX) Q3 2025 earnings summary

Executive summary

• Group revenues rose 19% year-over-year to €6.3 billion, driven by strong commercial OEM and MRO growth, with adjusted EBIT up 34% to €995 million and adjusted net income up 33% to €720 million.

• Free cash flow reached €279 million, up 31% from the prior year, despite GTF compensation payments.

• Upgraded guidance for EBIT and free cash flow, reaffirmed revenue outlook for 2025, reflecting robust demand and margin expansion.

• Market demand remains robust in both commercial and military segments, with strong order intake and favorable industry trends.

• New CEO Dr. Johannes Bussmann took office in September 2025, with Dr. Ottmar Pfänder appointed as Chief Program Officer effective January 2026.

Financial highlights

• Group revenues up 19% to €6.3 billion; in USD, up 22%.

• Adjusted EBIT up 34% to €995 million; EBIT margin at 15.9%.

• Adjusted net income reached €720 million; adjusted EPS at €13.21.

• Free cash flow at €279 million, with a 39% cash conversion rate.

• Order backlog at €24.1 billion at September 2025, down from €28.7 billion at year-end 2024 due to exchange rate effects.

Outlook and guidance

• EBIT adjusted growth guidance raised to mid-twenties percent for 2025, at the upper end of previous guidance.

• Free cash flow guidance increased to €350–400 million.

• Group sales expected between €8.6–8.8 billion for 2025.

• Military business growth projected in mid to high single digits; commercial OEM in mid-teens.

• Commercial MRO revenue growth outlook reaffirmed at mid to high teens.