Press release

| Adjusted figures for 2024: revenue €7.5 billion, EBIT €1,050 million, net income €764 million
| Guidance for 2025: revenue €8.7 to €8.9 billion, EBIT adjusted growth in mid-teens 
percentage range
| Proposed dividend: €2.20 per share

Munich, February 19, 2025 | In fiscal 2024, MTU Aero Engines AG set new records: adjusted revenue climbed 18% from €6.3 billion to a new all-time high of €7.5 billion. Adjusted EBIT¹ for 2024 was up 28% on the previous year’s figure of €818 million, exceeding the one-billion-euro mark for the first time at €1,050 million. The adjusted EBIT margin was 14.0%, compared with 12.9% in 2023. Adjusted net income² rose 29%, reaching a new record high at €764 million (2023: €594 million).

“The fact that we have set these records despite the challenges posed by the Geared Turbofan fleet management plan and despite ongoing supply chain volatility is an unequivocal statement of MTU’s capabilities,” says Lars Wagner, CEO of MTU Aero Engines AG. “We fully met our 2024 guidance.” MTU’s adjusted revenue of €7.5 billion for the year was at the upper end of the target range of €7.3 billion to €7.5 billion. With an adjusted EBIT of €1,050 million, MTU has posted earnings in excess of a billion euros one year earlier than originally planned. “We are seeing robust earnings growth across the board,” says Wagner. MTU expects this trend to continue in 2025. Wagner: “Aviation is a key industry and a global growth market. We intend to seize the opportunities that come our way – in all business areas – to keep MTU on a record course in 2025.”

Outlook for 2025
MTU anticipates further revenue and earnings growth in fiscal 2025. “Today we are updating our guidance from the figures we issued in November 2024, in line with our revised exchange rate assumptions,” explains Wagner. The guidance is now based on a US dollar/euro exchange rate of 1.05 instead of the previous assumption of 1.10. MTU aims to report revenue of between €8.7 billion and €8.9 billion in 2025; it had previously forecast between €8.3 billion and €8.5 billion, with all business areas contributing to this increase. The commercial series business is likely to grow fastest in 2025, with organic revenue growth in the mid-teens percentage range. MTU expects the spare parts business to post organic revenue growth in the low-teens percentage range. Revenue in the commercial maintenance business is also expected to grow organically, probably in the low to mid-teens percentage range. MTU anticipates that the military business will grow revenue in the mid to high single-digit percentage range. MTU’s adjusted EBIT is set to increase in the mid-teens percentage range as opposed to the low to mid-teens as forecast in the November 2024 guidance. Adjusted net income is likely to rise in line with adjusted EBIT in 2025. MTU again anticipates free cash flow in the low triple-digit million euro range in 2025. “The Geared Turbofan fleet management plan is likely to go on having a significant effect on MTU’s liquidity in 2025 and 2026. To limit the impacts insofar as possible and safeguard MTU’s future for the long term, stringent cash management remains a top priority for us,” says CFO Peter Kameritsch.

Higher revenue in the OEM and MRO businesses
MTU posted year-over-year revenue growth in both the OEM business and the MRO business in 2024.

Commercial maintenance (MRO) saw the highest increase, with adjusted revenue up 20% to €5.1 billion (2023: €4.2 billion). The Geared Turbofan maintenance revenue share was 31%, slightly below the anticipated 35%. “Demand for MRO services was high across all platforms in 2024,” reports Kameritsch. Among the revenue drivers in commercial maintenance were the GE90 for the Boeing 777, the V2500, which is used in the classic A320 family, the GEnx for Boeing’s Dreamliner and the engine leasing and asset management business.

In the OEM business, MTU generated adjusted revenue of €2.5 billion, an increase of 14% on the previous year (2023: €2.2 billion).

Adjusted revenue in the commercial engine business rose 15% from €1.7 billion to €1.9 billion. Within the commercial engine business, organic revenue growth in the series business was in the low twenties percentage range, while in the spare parts business it was in the low teens. “Both were in line with our expectations,” says Kameritsch. The CFO adds that “Alongside the Geared Turbofan engines, spare and leasing engines drove sales in the series business. In the spare parts business, mature widebody and narrowbody engines were the main drivers of revenue growth.”

In the military business, adjusted revenue rose 14% from €538 million to €612 million in 2024. Kameritsch: “We also achieved our expectations in the military business.” In the military business, technological advances for the New Generation Fighter Engine for the next generation of European fighter aircraft, the TP400-D6 for the A400M and the EJ200 for the Eurofighter Typhoon boosted revenue growth.

Order backlog of €28.6 billion
MTU’s order backlog was €28.6 billion at the end of 2024, up 17% compared with €24.4 billion at year-end 2023. The majority of orders were for the Pratt & Whitney GTF™ engine family, especially the PW1100G-JM, and the V2500. “In purely mathematical terms, the order backlog equates to more than three years’ work. This is further proof of MTU’s strong market position,” says Wagner.

Higher earnings in all business segments
MTU’s adjusted earnings climbed in both the OEM business and the MRO business in 2024.

In the commercial maintenance business, adjusted EBIT rose 33% from €329 million to €438 million. The adjusted EBIT margin increased from 7.8% in 2023 to 8.7% in 2024. “The robust leasing and asset management business, a good mix of contracts in independent MRO, and a lower proportion and material intensity of Geared Turbofan maintenance reflect positively in the margin trend,” explains Kameritsch.

In the OEM business, adjusted EBIT increased by 25% from €488 million to €612 million. The adjusted EBIT margin rose from 22.1% to 24.2%.

Proposed dividend of €2.20 per share
The Executive Board and the Supervisory Board of MTU Aero Engines AG are planning to propose a dividend of €2.20 per share to the Annual General Meeting on May 8, 2025. This is a 10% increase on the previous year (dividend for fiscal 2023: €2.00 per share). “This attractive dividend proposal is a measure of MTU’s operational strength and solid growth prospects. At the same time, it takes account of the expected cash outflows for the Geared Turbofan fleet management plan and our future investments,” says Kameritsch. “This dividend proposal is our thank-you to our shareholders for their loyalty and trust.” 

Research and development
In 2024, €342 million was spent on research and development, 12% more than in the previous year (2023: €306 million). “Our goal remains to actively shape the future of aviation and to contribute to the vision of emission-free flying. As such, we are consistently continuing to invest in the future,” emphasizes Wagner. MTU’s R&D activities focused on raising the efficiency of the Geared Turbofan programs, technology studies for future evolutionary and revolutionary engine generations, and expanding its virtual engine capabilities.

Free cash flow at €183 million
Free cash flow reached €183 million in 2024, a figure in the low three-digit million euro range as planned (2023: €352 million). The cash conversion rate was 24%. “Free cash flow was mainly affected by the Geared Turbofan fleet management plan and ongoing supply chain volatility,” says Kameritsch. “Despite these challenges, we delivered on our free cash flow guidance.” 

Property, plant and equipment
Net capital expenditure on property, plant and equipment increased by 33% from €302 million to €401 million in 2024.  The funds were invested in the growing engine leasing business and in the expansion and modernization of production and maintenance capacity.

12,892 employees
MTU had 12,892 employees at the end of the fiscal year, 6% more than at year-end 2023 (December 31, 2023: 12,170 employees).

MTU Aero Engines AG will publish its Annual Report on March 25, 2025.

MTU Aero Engines – Key data for 2024
(Amounts in € million)

¹ Adjusted figures for 2023 and 2024
² Revenue adjustment criteria aligned with 2023 annual financial statements
 

Outlook for 2025

Cautionary note regarding forward-looking statements
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, competition from other countries in MTU Aero Engines’ industry and MTU Aero Engines’ ability to retain or increase its market share, the cyclicality of the airline industry, risks relating to MTU Aero Engines’ participation in consortia and risk and revenue sharing agreements for new aero engine programs, risks associated with the capital markets, currency exchange rate fluctuations, regulations affecting MTU Aero Engines’ business and MTU Aero Engines’ ability to respond to changes in the regulatory environment, and other factors. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. MTU Aero Engines assumes no obligation to update any forward-looking statement.
 

¹ Adjusted EBIT = adjusted earnings before interest and taxes
² Adjusted net income = adjusted income after income taxes