MTU Aero Engines (MTX) Q2 2026 earnings summary

Executive summary

• Group revenues rose 13% year-over-year to approximately €4.7 billion in H1 2026, with adjusted EBIT up 5% to €692 million and a margin of 14.8%.

• Free cash flow surged 39% to €294 million, driving a cash conversion rate of 59%, above initial full-year guidance.

• Strong performance in commercial MRO and military business offset a decline in commercial OEM revenues.

• Geopolitical volatility, especially in the Middle East, had no material impact on business or financials.

• Order backlog increased 3% to €30.4 billion, providing multi-year revenue visibility.

Financial highlights

• Adjusted net income reached €502 million, in line with EBIT growth; adjusted EPS up 3% to €9.00.

• Commercial MRO revenues grew 21%–24% to nearly €3.4 billion, with GTF MRO as the main driver.

• Commercial OEM revenues declined 9%–9.5% in H1, while military revenues grew 15%.

• Adjusted EBIT margin for OEM was 31.2% in H1; MRO EBIT margin stood at 8%.

• Free cash flow: €294 million in H1, up 39% year-over-year.

Outlook and guidance

• Full-year 2026 revenue expected between €9.2–9.7 billion, with adjusted EBIT of €1.35–1.45 billion.

• Cash conversion guidance raised to 50%–60%, reflecting strong H1 momentum.

• Medium-term cash conversion target remains 75%–99%.

• All business areas expected to contribute to growth, with commercial and military segments forecasted for mid-to-high teens organic growth.

• Guidance based on USD/EUR exchange rate of 1.20.