MTU Aero Engines AG (MTU) generated revenue of €1,180 million in the first quarter of 2022. That was 19% more than in the prior-year period (1-3/2021: €989 million). The operating profit was 52% higher at €131 million (1-3/2021: €86 million). The adjusted EBIT margin was 11.1%, compared with 8.7% in the first quarter of 2021. Net income rose by 60% from €58 million to €93 million.
In the first quarter of 2022, MTU recorded the strongest revenue growth in the military engine business, where revenue rose by 25% to €108 million (1-3/2021: €87 million). “That reflects the postponement of EJ200 deliveries from the fourth quarter of 2021 to the first quarter of this year,” said Rainer Winkler MTU’s CEO. The main revenue driver was the EJ200 engine for the Eurofighter.
Revenue from commercial maintenance rose by 21% to €819 million (1-3/2021: €678 million). The most important revenue generators were the V2500 for the classic A320 aircraft family and the PW1100G-JM engine for the A320neo.
Revenue from the commercial engine business increased by 11% from €250 million to €278 million. On a dollar basis, the spare parts business registered organic revenue growth in the high-teens percentage range, while organic growth in the commercial series business declined by around 15%. “Revenue from series business mainly reflects lower deliveries of the Geared Turbofan™ and the GEnx,” explained Winkler. “We assume that GTF deliveries, in particular, will recover in the coming months.” The main source of revenue in the commercial engine business was the PW1100G-JM.
At the end of the first quarter, MTU’s order backlog rose to a new record of €23.4 billion, 5% higher than at year-end 2021 (December 31, 2021: €22.2 billion). The majority of orders were for the V2500 and the Geared Turbofan™ engines of the PW1000G family, especially the PW1100G-JM.
Earnings improved in both the OEM business and the commercial maintenance business.
Quarterly earnings from the OEM business rose by 66% from €47 million to €78 million. The adjusted EBIT margin increased from 14.0% in the first quarter of 2021 to 20.2% in the first quarter of 2022. “This clear rise in earnings was due to a mix of higher military and spare parts business, whereas the series business declined,” said MTU’s CFO Peter Kameritsch.
In the commercial maintenance business, quarterly earnings rose by 34% to €53 million (1-3/2021: €39 million). The adjusted EBIT margin was 6.4%, compared with 5.8% in the prior-year period. Kameritsch: “The improved margin is the result of the favorable revenue mix in the first quarter: The proportion of maintenance work in our core business relative to maintenance work on the GTF engines was above the ratio we anticipate for the full year.”
