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MTU Aero (MTUAY)
:MTUAY
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MTU Aero Engines
(OTC:MTUAY)
Rating:72Outperform
Price Target:―
MTU Aero Engines (MTUAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.76B
Dividend Yield0.55%
Average Volume (3M)582.00
Price to Earnings (P/E)35.4
Beta (1Y)0.74
Revenue Growth38.28%
EPS GrowthN/A
CountryUS
Employees12,892
SectorIndustrials
Sector Strength91
IndustryAerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares Outstanding107,648,980
10 Day Avg. Volume1,000
30 Day Avg. Volume582
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)6.37
Price to Sales (P/S)0.00
P/FCF Ratio182.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$204.00Price Target Upside-9.46% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
MTU Aero Engines Business Overview & Revenue Model
Company DescriptionMTU Aero Engines AG is a leading provider of aircraft engine solutions, specializing in the development, manufacturing, and maintenance of commercial and military aircraft engines. Based in Germany, the company operates in various sectors including commercial maintenance, original equipment manufacturing (OEM), and military engine services. MTU Aero Engines is recognized for its innovative technologies and comprehensive service portfolio, which includes engine repair, overhaul, and component manufacturing.
How the Company Makes MoneyMTU Aero Engines generates revenue through several key streams. The primary source of income is its commercial maintenance division, which provides maintenance, repair, and overhaul (MRO) services for commercial aircraft engines. This segment is crucial as airlines outsource these services to ensure operational efficiency and compliance with safety regulations. Additionally, MTU earns revenue from its OEM operations by designing and manufacturing engine components for new aircraft, often in collaboration with major engine and airframe manufacturers. The military engine services sector also contributes to the company's earnings through contracts with government and defense organizations for the development, production, and servicing of military engines. Strategic partnerships with global aerospace leaders like Pratt & Whitney and General Electric further enhance MTU's market presence and revenue potential by integrating its technologies into a wider range of engine platforms.
MTU Aero Engines Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 23.46%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and strategic expansions in the MRO segment, along with progress in the GTF Advantage program. However, uncertainties due to U.S. tariffs and currency exchange rate impacts were notable concerns. Despite these challenges, the company's financial performance showed strong improvements in EBIT and net income.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Group revenues for Q1 2025 reached nearly €2.1 billion, marking a 25% increase from last year. In U.S. dollar terms, revenues rose by 22%.
GTF Advantage Program Milestones
The GTF Advantage received FAA certification in February 2025, with initial deliveries to Airbus on track for later this year. The engine offers 4% to 8% more take-off thrust and lower fuel consumption.
MRO Expansion
Opened the second MRO shop in China and expanded North American footprint, introducing MRO services for LEAP-1A and 1B engines, which represents a multibillion-dollar revenue potential.
Improved EBIT and Net Income
Adjusted EBIT increased 38% to €300 million with a margin of 14.3%. Adjusted net income improved 41% to €221 million.
Positive Free Cash Flow
Free cash flow for Q1 2025 was strong at €150 million.
Negative Updates
Uncertainty from U.S. Tariffs
U.S. tariffs create significant confusion and uncertainty, especially impacting U.S. partners and MTU's profitability, with potential impacts in the mid- to high-digit million euro range.
Currency Exchange Rate Impact
Adjusted revenue guidance in euros was reduced due to recent exchange rate developments, with the updated forecast now based on a U.S. dollar-euro exchange rate of $1.10.
Strike at Arlington Facility
Potential impacts on GTF deliveries and powdered metal parts production due to a strike at the TX, Arlington facility, though details were not yet clear.
Company Guidance
During the MTU Q1 2025 results call, guidance for the fiscal year was updated with a focus on several key metrics. Adjusted revenue for 2025 is now expected to be between €8.3 billion and €8.5 billion, revised from the previous range of €8.7 billion to €8.9 billion due to recent exchange rate developments. The outlook is based on a U.S. dollar-euro exchange rate of $1.10. Despite the revision in revenue, guidance for adjusted EBIT and adjusted net income remains unchanged. Additionally, the company is confident in achieving a free cash flow between €250 million and €300 million. The guidance does not incorporate potential impacts from the volatile tariff environment affecting global markets. The company remains optimistic about its strategic initiatives and growth prospects, supported by robust market demand and ongoing expansions.MTU Aero Engines Financial Statement Overview
Summary
MTU Aero Engines exhibits a strong financial profile with significant revenue growth and improving profit margins. While profitability and equity returns are healthy, increased leverage and declining free cash flow need monitoring.Income Statement
MTU Aero Engines has demonstrated strong revenue growth with a 38.2% increase from 2023 to 2024. The gross profit margin improved significantly from 2.2% in 2023 to 16.7% in 2024, indicating better cost management. Net profit margin turned positive to 8.5% in 2024 from a negative position in 2023. However, the EBIT margin is missing for the latest year, which affects the comprehensive assessment of operational efficiency.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio increased to 0.72 in 2024, up from 0.44 in 2023, suggesting higher leverage but still within a manageable range. The return on equity improved to 18.8% in 2024, indicating strong profitability relative to shareholder equity. The equity ratio stands at 26.9%, reflecting a stable capital structure. Overall, the balance sheet shows strength with some caution on increased leverage.78
Positive
Cash Flow
Free cash flow showed a decrease from 2023 to 2024, dropping by 79.7%, which is a concern for liquidity. The operating cash flow to net income ratio was 1.13 in 2024, indicating good cash conversion from profits. However, free cash flow to net income ratio is low at 0.12, suggesting a need for improvement in cash generation relative to profits.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.22B | 7.41B | 5.36B | 5.33B | 4.19B | 3.98B |
| Gross Profit | -569.00M | 1.23B | 117.00M | 855.00M | 586.00M | 492.00M |
| EBITDA | 52.50M | 1.47B | 196.00M | 864.00M | 720.00M | 591.00M |
| Net Income | -640.00M | 633.00M | -102.00M | 331.00M | 222.00M | 139.00M |
Balance Sheet | ||||||
| Total Assets | 10.96B | 12.48B | 10.20B | 9.23B | 8.30B | 8.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.24B | 2.60B | 1.54B | 1.21B | 885.00M | 811.00M |
| Total Debt | 1.67B | 2.43B | 1.27B | 1.30B | 1.31B | 1.45B |
| Total Liabilities | 7.84B | 9.05B | 7.27B | 6.12B | 5.54B | 5.47B |
| Stockholders Equity | 3.04B | 3.36B | 2.86B | 3.03B | 2.68B | 2.55B |
Cash Flow | ||||||
| Free Cash Flow | 505.00M | 74.00M | 365.00M | 326.00M | 200.00M | 130.00M |
| Operating Cash Flow | 689.00M | 714.00M | 777.00M | 728.00M | 567.00M | 386.00M |
| Investing Cash Flow | -341.00M | -603.00M | -420.00M | -400.00M | -345.00M | -245.00M |
| Financing Cash Flow | -185.00M | 736.00M | -294.00M | -224.00M | -276.00M | 504.00M |
MTU Aero Engines Technical Analysis
Positive
225.32
Price Trends
205.18
Positive
187.88
Positive
177.10
Positive
Market Momentum
5.74
Positive
65.63
Neutral
76.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTUAY, the sentiment is Positive. The current price of 225.32 is above the 20-day moving average (MA) of 219.68, above the 50-day MA of 205.18, and above the 200-day MA of 177.10, indicating a bullish trend. The MACD of 5.74 indicates Positive momentum. The RSI at 65.63 is Neutral, neither overbought nor oversold. The STOCH value of 76.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTUAY.
MTU Aero Engines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $15.09B | 41.59 | 16.35% | 0.44% | 4.96% | 8.41% | |
75 Outperform | $7.10B | 204.86 | 4.62% | ― | 27.03% | 562.31% | |
75 Outperform | $12.78B | 45.25 | 28.24% | 0.70% | 9.87% | 14.16% | |
74 Outperform | $18.39B | 43.40 | 17.40% | 0.20% | 9.77% | 15.66% | |
72 Outperform | $23.76B | 35.39 | 20.61% | 0.55% | 38.28% | ― | |
71 Outperform | ¥255.73B | 13.62 | 8.48% | 3.01% | 6.34% | 13.16% | |
60 Neutral | $4.75B | ― | 81.63% | ― | -2.91% | -109.95% |
* Industrials Sector Average
Performance Comparison
MTUAY
MTU Aero Engines
225.96
91.66
68.25%
CW
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487.88
211.49
76.52%
SPR
Spirit AeroSystems
40.56
5.55
15.85%
WWD
Woodward
258.43
82.92
47.25%
BWXT
BWX Technologies
142.95
41.89
41.45%
LOAR
Loar Holdings Inc.
76.15
20.41
36.62%
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.