MTU Aero Engines (MTX) Q3 2024 earnings summary

Executive summary

• Adjusted group revenues for the first nine months of 2024 reached €5.3 billion, up 14% year-over-year, with growth across all business segments.

• Adjusted EBIT increased 25% to €744 million, and adjusted net income rose 23% to €541 million.

• Free cash flow was €213 million, impacted by supply chain issues and fleet management plans.

• EBIT is now expected to exceed €1 billion in 2024, achieving the 2025 target a year early.

• Strong MRO demand, high engine lease rates, and robust air traffic supported profitability.

Financial highlights

• OEM segment revenues rose 11% to €1.8 billion, with military revenues up 16% and commercial business up 9%.

• Adjusted OEM EBIT increased 19% to €444 million, with a margin near 25%.

• MRO segment revenues grew 15% to €3.6 billion, and adjusted EBIT rose 35% to €300 million, with an 8.4% margin.

• Adjusted EBIT margin for the group improved to 14.0% from 12.8% year-over-year.

• Free cash flow for 9M 2024 was €213 million, down 17% year-over-year.

Outlook and guidance

• Adjusted EBIT guidance for 2024 raised to slightly over €1 billion, up from the previous €950–980 million range.

• Revenue for 2024 forecasted between €7.3–7.5 billion, with all segments contributing to growth.

• Free cash flow anticipated in the low triple-digit million euro range.

• Organic revenue growth expected: commercial series (low-to-mid twenties %), spare parts (low teens %), commercial maintenance (mid-to-high teens %), military (low-to-mid teens %).

• Commercial OE revenue to rise low to mid-twenties percent; commercial MRO up mid to high teens percent.