MTU Aero Engines (MTX) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EBIT exceeding €1.05 billion in 2024, one year ahead of target, with adjusted revenues up 18% to €7.5 billion and all business segments contributing to growth.

• Adjusted net income rose 29% to €764 million.

• Order backlog increased 17% to €28.6 billion, equating to over three years of work.

• Announced a dividend proposal of €2.20 per share for 2024, up 10% from the previous year, and a management transition with new CEO and CFO in 2025.

• Share price reached an all-time high near €350 in January 2025.

Financial highlights

• Adjusted EBIT margin improved to 14.0% from 12.9% in 2023.

• Adjusted free cash flow was €183 million, down 48% year-over-year, mainly due to GTF Fleet Management Plan payments and higher working capital.

• Dividend proposal of €2.20 per share; share price reached all-time high of €349.90.

• Largest corporate bond issued in September 2024, raising €750 million at 3.875% for seven years, plus a €300 million promissory note in April.

• Net financial debt rose 68% to €1,061 million; cash and cash equivalents nearly doubled to €1,747 million.

Outlook and guidance

• 2025 group revenues expected to grow to €8.7–8.9 billion, with mid- to high single-digit % growth in military and mid-teens % in commercial new engines.

• Commercial spare parts and MRO expected to grow in the low- to mid-teens % range.

• Adjusted EBIT and net income to increase in the mid-teens % range.

• Free cash flow for 2025 guided to the upper end of a low triple-digit million-euro range, despite ongoing GTF Fleet Management Plan payments and supply chain volatility.

• All business areas expected to contribute to growth.