MTU Aero Engines (MTX) Guidance summary

Opening remarks and agenda

• Conference call and Capital Market Update for 2025 guidance held on November 29, 2024, with strategy beyond 2025 postponed until after CEO succession planning.

• CEO emphasized commitment until end of term, clarifying leadership change is unrelated to company prospects.

• Forecasts for 2025 include continued profitable growth, with revenue expected between EUR 8.3 and 8.5 billion and adjusted EBIT rising in the low- to mid-teens percentage range.

Guidance on key objectives

• 2025 group revenues expected between EUR 8.3 and 8.5 billion, with EBIT and net income projected to grow in the low- to mid-teens percentage range.

• Free cash flow for 2025 anticipated in the low triple-digit million euro range, impacted by GTF fleet management payments and strict cash management.

• Proposed dividend of EUR 2.20 per share for 2024, a 10% increase year-on-year, to be presented at the May 2025 AGM.

• 2024 group sales guided at EUR 7.3–7.5 billion, with adjusted EBIT to exceed EUR 1 billion.

• Military business projected to grow mid- to high single digits, driven by EJ200 and T408 engine deliveries and development work.

Market trends and strategic opportunities

• Strongest growth expected in commercial series business, with organic revenue up in the mid-teens percentage range in 2025.

• Commercial OE revenues to increase in the mid-teens, led by GTF family, GEnx, and first GE9X deliveries.

• Commercial spare parts and MRO expected to grow in the low to mid-teens, with strong demand for narrow body engines and GTF MRO work, which will account for about 40% of MRO revenue.

• Military segment driven by growing EJ200 deliveries and increased development for NGFE.

• Positive product mix and robust engine leasing contributed to EBIT exceeding expectations.