MTU Aero Engines (MTU) achieved adjusted revenue of €1.67 billion in the first quarter of 2024, marking an 8% increase compared to the same period in 2023 (1-3/2023: €1.54 billion). Adjusted EBIT2 reached €218 million, up from €212 million in the prior-year period, while the adjusted EBIT margin stood at 13.0% (1-3/2023: 13.7%). Adjusted net income remained steady at €158 million, aligning with the previous year (1-3/2023: €157 million).
“MTU managed to match the record level of the first quarter of 2023, despite the challenges of the Geared Turbofan fleet management plan and the continued challenging supply chain situation,” commented Lars Wagner, CEO of MTU Aero Engines. “In view of this, we consider that we are well-positioned to achieve the ambitious targets we have set for the 2024 fiscal year.” Wagner also confirmed the guidance for 2025: “Our target remains our simple formula 8 – 1 – 25: we want to generate revenue of €8 billion and an operating profit of €1 billion in 2025.”
Revenue growth in the first quarter of 2024 was primarily driven by the military business and commercial maintenance.
The military engine business experienced the highest revenue growth, with revenue increasing by 21% from €103 million to €124 million. The main revenue contributor was the EJ200 engine for the Eurofighter. CFO Peter Kameritsch explains, “In the military engine business, we registered catch-up effects from 2023. In addition, earnings contribution from the new-generation fighter engine for the next-generation of European fighter jets increased.”
MTU reported that revenue in the commercial maintenance business rose by 12% from €1.02 billion to €1.14 billion in the first three months of 2024. The most significant revenue generators were the PW1100G-JM for the Airbus A320neo, the V2500 for the classic A320 family and the CF34 engine for business and regional aircraft. Kameritsch noted, “Supply chain problems mean longer turn-around times in maintenance. That holds back further MRO activities, so revenue growth was at the lower end of our expectations in the first three months.”
In the commercial engine business, revenue totalled €433 million in the first quarter, compared with €446 million in the prior-year period. The main revenue generator was the PW1100G-JM. Kameritsch attributed the slight decline to positive effects from the valuation of the US dollar and hedging in the prior-year period.
MTU's order backlog stood at €25.42 billion at the end of the quarter, 4% higher than at year-end 2023 (December 31, 2023: €24.39 billion). The largest proportion of orders on hand was for Geared Turbofan engines for the PW1000G family – especially the PW1100G-JM – and the V2500. Wagner said: “The sustained high order backlog shows the high demand for our products and services. In light of the Geared Turbofan fleet management plan and the supply chain problems, what is important now is to focus on working through the orders swiftly – naturally without compromising on our high-quality standards.” (€1.00 = US$1.07 at time of publication).
