MTU Aero (MTUAY)
OTHER OTC:MTUAY
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MTU Aero Engines
(OTC:MTUAY)
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Rating:66Neutral
Price Target:
$210.00
▲(2.72% Upside)
Action:Downgraded
Date:03/29/26
The score is driven primarily by improving fundamentals (margin expansion and a large 2025 free-cash-flow step-up) and supportive 2026 guidance from the earnings call. These positives are tempered by weak technicals (price below major moving averages with negative MACD) and near-term execution/cash-timing risks tied to GTF-related costs and working-capital build, while valuation appears reasonable but not notably cheap and the dividend yield is modest.
Positive Factors
Record 2025 results (revenue, margins, FCF)
The combined revenue rebound, margin expansion and record free cash flow in 2025 indicate durable operational improvement and stronger cash conversion. That sustained cash generation supports reinvestment, capacity buildouts and a more resilient ability to weather aerospace cycles over multiple years.
Negative Factors
GTF compensation cash burden
Material, ongoing GTF-related compensation is a structural cash outflow that reduces free cash flow availability and constrains near-to-medium term liquidity. Persistent payments can delay deleveraging, capex timing or dividend policy execution until liabilities are fully absorbed.
Read all positive and negative factors
Positive Factors
Negative Factors
Record 2025 results (revenue, margins, FCF)
The combined revenue rebound, margin expansion and record free cash flow in 2025 indicate durable operational improvement and stronger cash conversion. That sustained cash generation supports reinvestment, capacity buildouts and a more resilient ability to weather aerospace cycles over multiple years.
Read all positive factors
MTU Aero Engines (MTUAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.13B
Dividend Yield0.59%
Average Volume (3M)22.38K
Price to Earnings (P/E)9.4
Beta (1Y)0.82
Revenue Growth23.60%
EPS Growth67.57%
CountryUS
Employees12,892
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)10.12
Shares Outstanding107,818,320
10 Day Avg. Volume9,805
30 Day Avg. Volume22,376
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)4.48
Price to Sales (P/S)2.29
P/FCF Ratio39.86
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit9.31
Enterprise Value/Ebitda11.28
Forecast
1Y Price Target
$243.00Price Target Upside18.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
MTU Aero Engines Business Overview & Revenue Model
Company Description
MTU Aero Engines AG, together with its subsidiaries, develops, manufactures, markets, and maintains commercial and military engines, and aero derivative industrial gas turbines in Germany, other European countries, North America, Asia, and interna...
How the Company Makes Money
MTU Aero Engines primarily makes money from two core areas: (1) Original equipment (OEM) activities tied to new engine programs and (2) the aftermarket (maintenance, repair, and overhaul) for engines already in service. In its OEM business, MTU ea...
MTU Aero Engines Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance for 2025—record revenue, margin expansion, all-time high free cash flow, major capacity and technology milestones, and an ambitious 2026 guidance—while acknowledging tangible near-term headwinds from the GTF fleet management cash burden, ramp-up inventory impacts (notably Fort Worth), supply-chain delays and ongoing customer/partner delivery negotiations. Overall, the company is investing for long-term profitable growth with a solid balance sheet, but some execution and cash-timing risks remain in the short term.Positive Updates
Record Revenue
Group revenues increased 16% to EUR 8.7 billion in 2025, a new company record and in line with updated guidance.
Negative Updates
GTF Fleet Management Cash Burden
Company recorded ~USD 360 million in airline compensation payments in 2025 related to the GTF fleet management plan, with remaining payments expected into 2026 and beyond, pressuring near-term cash flow.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue
Group revenues increased 16% to EUR 8.7 billion in 2025, a new company record and in line with updated guidance.
Read all positive updates
Company Guidance
MTU guided 2026 group revenues of EUR 9.2–9.7 billion (assumes USD/EUR 1.20) and adjusted EBIT of EUR 1.35–1.45 billion (consistent with its 2030 margin corridor of 14.5%–15.5%), with adjusted net income expected to grow broadly in line with EBIT; cash conversion is forecast to improve to 45%–55% (up from 39% in 2025, when free cash flow was EUR 378 million). Management expects organic U.S. dollar OE revenues to rise in the mid‑ to high‑teens, organic commercial spare‑parts growth in the low‑ to mid‑teens, MRO U.S. dollar growth in the low‑ to mid‑teens, and military revenue growth in the mid‑teens, with GTF MRO representing 40%–45% of MRO revenues. The company has hedged around 80% of its 2026 net USD exposure at an average rate of 1.13 (a EUR 0.05 USD move ≈ EUR 20 million EBIT), reports net debt of ~EUR 1.1 billion (net debt/EBITDA <1, target leverage 0.5–1.5), will propose a EUR 3.60 dividend per share (+64% y/y; 20% payout ratio toward a 40% target), and notes headwinds to 2026 free cash flow from remaining GTF compensation and a high‑double‑digit working‑capital build for the Fort Worth ramp‑up; order book stands at EUR 29.5 billion (≈3 years sold out).MTU Aero Engines Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.42B | 7.41B | 5.36B | 5.33B | 4.19B |
| Gross Profit | 1.62B | 1.23B | 117.00M | 855.00M | 586.00M |
| EBITDA | 1.60B | 1.47B | 196.00M | 723.00M | 519.00M |
| Net Income | 987.43M | 633.00M | -102.00M | 331.00M | 222.00M |
Balance Sheet | |||||
| Total Assets | 13.22B | 12.48B | 10.20B | 9.23B | 8.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 2.60B | 1.54B | 1.21B | 885.00M |
| Total Debt | 2.43B | 2.43B | 1.27B | 1.30B | 1.31B |
| Total Liabilities | 8.84B | 9.05B | 7.27B | 6.12B | 5.54B |
| Stockholders Equity | 4.31B | 3.36B | 2.86B | 3.03B | 2.68B |
Cash Flow | |||||
| Free Cash Flow | 484.11M | 74.00M | 365.00M | 326.00M | 200.00M |
| Operating Cash Flow | 814.53M | 714.00M | 777.00M | 728.00M | 567.00M |
| Investing Cash Flow | -465.86M | -603.00M | -420.00M | -400.00M | -345.00M |
| Financing Cash Flow | -804.93M | 736.00M | -294.00M | -224.00M | -276.00M |
MTU Aero Engines Technical Analysis
Negative
204.44
Price Trends
179.27
Negative
199.11
Negative
206.31
Negative
Market Momentum
-5.34
Positive
44.61
Neutral
15.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTUAY, the sentiment is Negative. The current price of 204.44 is above the 20-day moving average (MA) of 169.33, above the 50-day MA of 179.27, and below the 200-day MA of 206.31, indicating a bearish trend. The MACD of -5.34 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 15.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTUAY.
MTU Aero Engines Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $57.97B | 32.48 | 8.87% | 1.61% | 5.79% | 9.31% | |
68 Neutral | $236.95B | 31.57 | 11.23% | 1.44% | 10.56% | 56.63% | |
67 Neutral | $298.38B | 38.03 | 46.39% | 0.48% | 21.75% | 26.48% | |
67 Neutral | $78.12B | 27.70 | 28.05% | 1.55% | 4.95% | 26.05% | |
66 Neutral | $17.13B | 9.38 | 26.38% | 0.59% | 23.60% | 67.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $173.91B | -10,177.67 | -8719.23% | ― | 32.74% | ― |
* Industrials Sector Average
MTUAY
MTU Aero Engines
166.98
-26.35
-13.63%
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9.35%
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309.15
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NOC
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552.17
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18.39%
RTX
RTX
174.85
42.14
31.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.