MTU Aero Engines (MTX) Q1 2026 earnings summary

Executive summary

• Group revenues rose 7% year-over-year to €2.244 billion in Q1 2026, with adjusted EBIT up 6% to €320 million and adjusted net income up 3% to €229 million.

• Free cash flow increased 18% to €177 million, with a cash conversion rate of 77% and order backlog up 7% to €31.6 billion.

• The company reaffirmed its full-year 2026 guidance, citing a resilient product portfolio, strong order book, and proactive risk management amid geopolitical uncertainties.

• Strategic acquisition of AeroDesignWorks expands presence in the fast-growing UAV propulsion market and supports European technical independence.

• GTF fleet management and MRO outputs are improving, with AOG numbers trending down and certification for GTF Advantage achieved.

Financial highlights

• Group revenues reached €2.244 billion, up 7% year-over-year; in USD terms, up 18%.

• Adjusted EBIT increased 6% to €320 million (margin 14.2%).

• Adjusted net income rose 3% to €229 million; adjusted EPS up 4% to €4.14.

• Free cash flow up 18% to €177 million, supported by dividend income and lower investing cash flow.

• Net financial debt decreased 5% to €1.08 billion, with net debt/EBITDA ratio below 1.

Outlook and guidance

• 2026 group revenues expected at €9.2–9.7 billion, adjusted EBIT at €1.35–1.45 billion, and cash conversion rate targeted at 45–55%.

• Net income projected to grow in line with EBIT; all business areas expected to contribute to growth.

• Highest growth anticipated in commercial series and spare parts businesses, with mid-to-high teens percentage growth.

• GTF MRO revenue share expected at 40–45%.

• No major adverse impact expected from current geopolitical tensions; supply chain and demand remain robust.