MTU Aero Engines (MTX) CMD 2025 summary

Strategic direction and management changes

• Transition in management with new CFO and CEO succession underway, ensuring leadership continuity for executing midterm guidance.

• Launch of the UPLIFT transformation program to standardize, optimize, and digitalize processes for scalable growth.

• Focus on growth, operational excellence, and innovation, with strong commitment to safety, sustainability, and European defense sovereignty.

• Emphasis on robust long-term growth, supported by expanding product and service portfolios in both commercial and defense sectors.

• Ongoing investments in capacity and footprint optimization, with no new production locations needed before 2030.

Market environment and business developments

• Commercial aircraft fleet expected to grow from 28,000 to 51,000 over 20 years, with narrow-body segment leading at 3–3.5% CAGR.

• Defense business benefits from increased geopolitical demand, especially for Eurofighter and new programs like FCAS and NGFE.

• Military order book includes 160 new engines, with export campaigns for up to 140 aircraft and ongoing development of sixth-generation fighter engines.

• Commercial OE and MRO segments outperform market growth, with narrow-body engine exposure set to double in the next decade.

• MRO revenue targeted to double to CHF 10–11 billion in five years, driven by investments in LEAP, Gen X, and new facilities.

Technology, ESG, and innovation

• GTF Advantage engine certified, offering 4–8% more thrust and double the durability, with retrofittable upgrades for existing engines.

• Next-generation geared turbofan targeted for 2035+ entry into service, with focus on evolutionary and revolutionary improvements.

• Flying fuel cell demonstrator progressing, with multi-megawatt demonstration and flight proof of concept targeted by 2030.

• Sustainability targets upgraded: 60% CO2 reduction by 2025 (Scope 1 & 2), with Scope 3 baseline in development and new 2035 ambition set at 63%.

• Supporting development and use of sustainable aviation fuels and hydrogen technologies.