MTU Maintenance posts net income of €342 million for 2021

MTU Aero Engines AG has published its preliminary figures for 2021: Revenue rose 5% from €3,977 million to €4,188 million. Operating profit was 13% higher at €468 million (2020: €416 million). The adjusted EBIT margin was 11.2%, compared with 10.5% in 2020. Net income climbed to €342 million in 2021 (2020: €294 million).

In commercial maintenance (MRO), MTU raised revenue by 9% to €2,741 million in 2021 (2020: €2,522 million). Around 60% of the revenue mix was work in MTU’s core MRO business and around 40% comprises maintenance work on the Geared Turbofan™. “On a dollar-basis, MRO reported a 13% rise in revenue, which was not quite as strong as had been anticipated,” said CFO Peter Kameritsch. MTU had assumed the commercial maintenance business would report organic revenue growth in the mid-teen percentage range. The main revenue drivers in this business were the PW1100G-JM engine for the A320neo and the V2500, which is used in the classic A320 aircraft.

In the commercial engine business, MTU generated revenue of €1,066 million (2020: €1,052 million). Organic revenue increased by 5% in the spare parts business but fell by 6% in the series business.
“A quarterly view shows an organic improvement in both areas,” said Kameritsch. “In the fourth quarter, revenue from the series business was about 20% higher than in the fourth quarter of 2020 and in the spare parts business the increase was around 40%.” The PW1100G-JM for the A320neo was the main revenue driver in the commercial engine business.

At the end of 2021, MTU’s order backlog amounted to €22.2 billion, compared with €18.6 billion at year-end 2020. “That is a new record and further evidence of MTU’s future viability,” said Reiner Winkler, CEO of MTU Aero Engines. “In 2021, we secured commercial maintenance orders worth US$4.6 billion. Particularly given the difficult market situation, that is evidence of MTU’s strong market position.”  The order backlog mainly relates to V2500 and the Geared Turbofan™ engines in the PW1000G family, especially the PW1100G-JM. (£1.00 = €1.19 at time of publication).