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MTU Aero Engines (MTUAY)
OTHER OTC: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
$24.46B
Dividend Yield0.61%
Average Volume (3M)860.00
Price to Earnings (P/E)26.3
Beta (1Y)0.75
Revenue Growth46.08%
EPS GrowthN/A
CountryUS
Employees12,892
SectorIndustrials
Sector Strength83
IndustryAerospace & Defense
Share Statistics
EPS (TTM)5.12
Shares Outstanding107,648,980
10 Day Avg. Volume995
30 Day Avg. Volume860
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 Cap1.06
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit-45.45
Enterprise Value/Ebitda492.57
Forecast
1Y Price Target
$249.00Price Target Upside9.59% 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: 0.56%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance in the first half of 2025 with significant revenue growth and strategic achievements such as record order intakes and ambitious targets for 2030. However, challenges remain in the military segment, tariff environment, and GTF fleet management. Overall, the positive highlights outweigh the lowlights.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Group revenues reached over EUR 4.1 billion, marking a 21% increase driven by strong performance in commercial OEM and MRO segments.
Strong Adjusted EBIT
Adjusted EBIT rose to EUR 657 million, a 40% increase, resulting from a favorable business mix and improved profitability in MRO operations.
Successful Paris Air Show
MTU recorded a record-breaking order intake of USD 1.75 billion, primarily for GTF engines, with significant orders from Wizz Air, Frontier Airlines, and LOT Polish Airlines.
2030 Ambitious Targets
MTU announced ambitious targets for 2030, expecting revenues between EUR 13 billion and EUR 14 billion with an adjusted EBIT margin of 14.5% to 15.5%.
Strategic Partnerships and Investments
MTU deepened partnerships with Airbus for hydrogen fuel cell development and Avio Aero for next-gen helicopter engines. Investment in Fort Worth facility and EME Aero's expansion were highlighted.
Negative Updates
Military Revenue Decline
Military revenues were down 5% to EUR 260 million due to delays in repair business.
Tariff Environment Uncertainty
The company acknowledged headwinds and uncertainty from the current tariff environment, with potential impacts difficult to quantify.
GTF Fleet Management Challenges
MTU faced challenges in GTF fleet management, with compensations impacting cash flow and continued focus required to improve AOG situations.
Company Guidance
During the MTU Aero Engines conference call discussing the first half of 2025 results, the management provided a comprehensive overview of the company's financial performance and future guidance. Group revenues surpassed EUR 4.1 billion, with adjusted EBIT increasing to EUR 657 million, highlighting exceptional growth in the commercial OEM and MRO segments. The free cash flow stood at EUR 212 million, aligning with full-year expectations. The Paris Air Show was a significant event, where MTU secured a record-breaking order intake of USD 1.75 billion and announced an upgrade to the 2025 guidance. The company projects revenues between EUR 8.6 billion and EUR 8.8 billion for 2025, with an adjusted EBIT growth in the low to mid-20% range and free cash flow anticipated between EUR 300 million and EUR 350 million. They also outlined ambitious 2030 targets, expecting revenues to reach EUR 13-14 billion with an adjusted EBIT margin of 14.5-15.5%. The conference call highlighted strategic investments, such as the USD 120 million modernization of the Fort Worth facility, and emphasized MTU's strong market position and partnerships, including collaborations with Airbus and Avio Aero.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
227.21
Price Trends
215.81
Positive
195.85
Positive
182.72
Positive
Market Momentum
2.46
Negative
58.94
Neutral
93.60
Negative
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 227.21 is above the 20-day moving average (MA) of 219.86, above the 50-day MA of 215.81, and above the 200-day MA of 182.72, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 93.60 is Negative, 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $18.90B | 42.32 | 17.46% | 0.18% | 9.89% | 16.20% | |
72 Outperform | $24.46B | 26.26 | 23.85% | 0.61% | 46.08% | ― | |
71 Outperform | $15.14B | 39.93 | 16.76% | 0.43% | 5.53% | 5.56% | |
70 Outperform | $16.41B | 56.01 | 26.97% | 0.55% | 10.13% | 10.04% | |
66 Neutral | $6.53B | 179.08 | 4.70% | ― | 26.15% | 251.10% | |
58 Neutral | HK$13.62B | 5.49 | -2.78% | 5.72% | 2.29% | -57.50% | |
51 Neutral | $4.76B | ― | 81.63% | ― | -2.60% | -94.76% |
* Industrials Sector Average
Performance Comparison
MTUAY
MTU Aero Engines
227.21
80.46
54.83%
CW
Curtiss-Wright
492.15
191.64
63.77%
SPR
Spirit AeroSystems
40.89
5.62
15.93%
WWD
Woodward
246.86
92.11
59.52%
BWXT
BWX Technologies
174.70
77.14
79.07%
LOAR
Loar Holdings Inc.
69.64
-5.31
-7.08%
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.