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MTU Aero Engines (MTUAY)
OTHER OTC:MTUAY
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MTU Aero Engines
(OTC:MTUAY)
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Rating:72Outperform
Price Target:―
MTU Aero Engines scores a 72, reflecting strong financial performance with healthy revenue and profit growth. However, increased leverage and declining free cash flow present risks. The technical analysis indicates potential short-term weakness, while the high P/E ratio suggests possible overvaluation.
MTU Aero Engines (MTUAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.81B
Dividend Yield0.58%
Average Volume (3M)488.00
Price to Earnings (P/E)24.6
Beta (1Y)0.70
Revenue Growth46.08%
EPS GrowthN/A
CountryUS
Employees12,892
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.12
Shares Outstanding107,648,980
10 Day Avg. Volume0
30 Day Avg. Volume488
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit-45.45
Enterprise Value/Ebitda492.57
Forecast
1Y Price Target
$249.00Price Target Upside17.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
MTU Aero Engines Business Overview & Revenue Model
Company DescriptionMTU 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 internationally. It operates through two segments, Commercial and Military Engine Business; and Commercial Maintenance Business. The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, and business jets; military aircraft engines for fighter aircraft, helicopters, and transport aircraft; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various brush seals. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.
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:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
MTU Aero Engines showcased a robust financial performance and significant strategic achievements in the first half of 2025, highlighted by record-breaking order intake and strong revenue growth. However, the company faces challenges in the military segment and potential impacts from tariffs, coupled with supply chain and GTF engine management issues. Despite these challenges, the overall sentiment leans towards positive, given the substantial achievements and strategic initiatives undertaken.Q2-2025 Updates
Positive Updates
Record-Breaking Order Intake
MTU achieved a record-breaking order intake of USD 1.75 billion at the Paris Air Show, primarily for the GTF engines, with major orders from Wizz Air, Frontier Airlines, and LOT Polish Airlines.
Strong Financial Performance in H1 2025
Group revenues reached EUR 4.1 billion, a 21% increase driven by robust growth in both commercial OEM and MRO segments. Adjusted EBIT rose to EUR 657 million, a 40% increase, with a margin of 15.9%.
Upward Revision of 2025 Guidance
MTU raised its 2025 guidance with expected revenues between EUR 8.6 billion and EUR 8.8 billion and a free cash flow range of EUR 300 million to EUR 350 million.
Expansion and Strategic Partnerships
Announced a 30-year lease agreement for Fort Worth facility expansion and a Memorandum of Understanding with Airbus for hydrogen fuel cell development.
Improved Cash Flow and Profitability
Free cash flow improved to EUR 212 million, supported by strong MRO segment performance and EBIT growth.
Negative Updates
Military Revenue Decline
Military revenues decreased by 5% to EUR 260 million due to delays in repair business.
Supply Chain Challenges
Minor supply chain disruptions were noted, such as shortages of small parts due to a fire at the SPS facility.
Impact of Tariffs
The company faces potential impacts from U.S. tariffs, with an anticipated net impact in the range of high-single to low double-digit impact on EBIT.
GTF Engine Management Challenges
Managing the GTF fleet remains a challenge with ongoing efforts to improve the AOG situation and MRO output.
Company Guidance
During the MTU Aero Engines conference call for the first half of 2025, management provided several key metrics and updates on their financial performance and future outlook. Group revenues reached over EUR 4.1 billion, driven by growth in both the commercial OEM and MRO segments, with adjusted EBIT rising to EUR 657 million. Free cash flow was strong at EUR 212 million, aligning with full-year expectations. Notably, MTU secured a record-breaking USD 1.75 billion in orders at the Paris Air Show, primarily for GTF engines. The company revised its 2025 guidance upward, expecting revenues between EUR 8.6 billion and EUR 8.8 billion, with adjusted EBIT growth in the low to mid-20% range. MTU also outlined ambitious 2030 targets, forecasting revenues of EUR 13-14 billion and an EBIT margin of 14.5% to 15.5%. Despite the positive results, MTU noted potential headwinds from tariffs and supply chain issues, though improvements in turnaround times and material availability for GTF engines were highlighted as positive developments.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
Neutral
211.38
Price Trends
219.74
Negative
207.84
Positive
188.58
Positive
Market Momentum
-2.54
Positive
39.75
Neutral
5.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTUAY, the sentiment is Neutral. The current price of 211.38 is below the 20-day moving average (MA) of 217.79, below the 50-day MA of 219.74, and above the 200-day MA of 188.58, indicating a neutral trend. The MACD of -2.54 indicates Positive momentum. The RSI at 39.75 is Neutral, neither overbought nor oversold. The STOCH value of 5.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MTUAY.
MTU Aero Engines Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 19.55B | 43.77 | 16.65% | 0.17% | 9.89% | 16.20% | |
73 Outperform | 14.38B | 37.95 | 15.71% | 0.45% | 5.53% | 5.56% | |
72 Outperform | $22.81B | 24.58 | 23.85% | 0.58% | 46.08% | ― | |
71 Outperform | 7.28B | 165.47 | 2.04% | ― | 26.15% | 251.10% | |
70 Outperform | 15.93B | 54.38 | 24.86% | 0.57% | 10.13% | 10.04% | |
41 Neutral | 4.55B | -1.93 | 81.63% | ― | -2.60% | -94.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
MTUAY
MTU Aero Engines
211.38
61.82
41.33%
BA
Boeing
215.02
59.91
38.62%
GE
GE Aerospace
292.97
110.60
60.65%
LHX
L3Harris Technologies
284.27
59.00
26.19%
NOC
Northrop Grumman
579.36
66.72
13.01%
RTX
RTX
158.58
42.86
37.04%
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.