- Record Revenue & EBIT: Revenue reached EUR 8.7 billion, EBIT rose to EUR 1.35 billion (15.5% margin), and free cash flow hit EUR 378 million in 2025.
- Strong Order Book: Current order book stands at USD 29.5 billion, covering 3 years of capacity, with USD 2+ billion in new OEM orders driven by GTF/GENX/GE9X programs.
- GTF MRO Dominance: GTF MRO contributed 40% of total MRO revenues in 2025, with adjusted EBIT up 9% to EUR 478 million (8% margin).
- 2026 Guidance: Adjusted EBIT projected between EUR 1.35–1.45 billion; MRO growth expected in low-to-mid teens, with 40–45% revenue share from GTF MRO.
- Debt & Hedging: Net debt reduced to EUR 1.1 billion (net debt/EBITDA <1x), and 80% of 2026 USD exposure hedged at 1.13 EUR/USD rate.
Revenue Growth Drivers
The company's commercial OEM business remained exceptionally strong, with new orders exceeding USD 2 billion in 2025, driven by the GTF, GENX, and GE9X programs. The MRO segment also performed well, with commercial revenues rising by 18% to EUR 5.96 billion in 2025, driven by the GTF program. For 2026, MTU expects organic U.S. dollar OE revenues to grow in the mid- to high-teens range, driven by increased engine deliveries and a higher share of installed engines.
Valuation Metrics
With a P/E Ratio of 22.59 and an EV/EBITDA ratio of 14.84, the market appears to be pricing in a certain level of growth for MTU Aero Engines. The company's ROE of 25.37% and ROIC of 7.56% indicate a strong ability to generate returns on equity and invested capital. The dividend yield of 0.58% is relatively modest, but the company's commitment to returning value to shareholders is evident in its proposed dividend of EUR 3.60 per share for 2025.
Outlook and Challenges
While MTU Aero Engines is well-positioned for continued growth, there are potential headwinds on the horizon. The ramp-up of the Fort Worth facility is expected to have a high double-digit impact on free cash flow, and the company anticipates an increase in GTF receivables for prefinance shop visits, which will be a headwind for free cash flow. Additionally, the company's inventory levels are expected to continue growing due to business expansion, despite efforts to manage them efficiently.
Guidance and Expectations
For 2026, MTU expects to deliver a strong performance, with adjusted EBIT expected to come in between EUR 1.35 billion and EUR 1.45 billion. The company's guidance is fully aligned with its growth plan towards its midterm target for 2030. Analysts estimate revenue growth of 10.1% for the next year, which is slightly below the company's expected growth rate. Overall, MTU Aero Engines' strong 2025 performance and positive outlook make a compelling case for continued growth and investment in the company.