MTU Aero Engines confirms guidance after first half of 2023

MTU Aero Engines AG generated revenue of €3.1 billion in the first half of 2023 (1-6/2022: €2.5 billion). This equates to an increase of 25%. Operating profit rose by 40% from €290 million to €405 million. The adjusted EBIT margin was 13.1% (1-6/2022: 11.7%). Net income climbed by 45% to €300 million, up from €207 million in the prior-year period.

The highest revenue growth in the first half was achieved in commercial engine business, where revenue increased by 40% to €832 million (1-6/2022: €596 million). The main revenue driver was the PW1100G-JM engine for the A320neo. Within commercial engine business, organic revenue from commercial-series business increased by a percentage in the thirties on a dollar basis. Organic revenue growth in spare parts business grew by a percentage in the low twenties in dollar terms.  

Revenue from commercial maintenance rose by 22% from €1.7 billion to €2.1 billion in the first-half of 2023. The main revenue drivers were the PW1100G-JM and the V2500 for the classic A320 aircraft family.

In the military business, revenue grew by 7% to €229 million (1-6/2022: €213 million). The main revenue driver was the EJ200 engine for the Eurofighter.

Order backlog was valued at €21.9 billion at the end of the first half (December 31, 2022: €22.3 billion). The majority of orders were for the V2500 and the Geared Turbofan™ engines of the PW1000G family, especially the PW1100G-JM. Both of MTU’s operating segments improved their half-year earnings.

In the OEM business, adjusted EBIT rose by 59% from €165 million to €262 million. The adjusted EBIT margin widened from 20.4% in the first half of 2022 to 24.7% in the first half of 2023.

In the MRO business, adjusted EBIT climbed by 14% to €141 million (1-6/2022: €124 million). The adjusted EBIT margin was 6.8%, compared with 7.3% in the first half of 2022. (£1.00 = €1.17 at time of publication).