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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:74Outperform
Price Target:
$249.00
▲(12.49% Upside)
MTU Aero Engines' strong financial performance and positive earnings call insights are the primary drivers of its score. However, technical indicators and valuation concerns moderate the overall outlook.
MTU Aero Engines (MTUAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.40B
Dividend Yield0.55%
Average Volume (3M)514.00
Price to Earnings (P/E)26.2
Beta (1Y)0.66
Revenue Growth46.08%
EPS GrowthN/A
CountryUS
Employees12,892
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)N/A
Shares Outstanding107,648,980
10 Day Avg. Volume587
30 Day Avg. Volume514
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)5.33
Price to Sales (P/S)2.42
P/FCF Ratio242.36
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue3.25
Enterprise Value/Gross Profit15.67
Enterprise Value/Ebitda17.41
Forecast
1Y Price Target
$249.00Price Target Upside12.49% 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. Primarily, the company earns money from the sale of new aircraft engines to commercial and military customers. This includes both the initial manufacturing of engines and associated components. In addition to engine sales, MTU has a robust maintenance, repair, and overhaul (MRO) segment, which provides ongoing service for engines in operation, contributing a significant portion of its revenue through long-term contracts and service agreements. The company also benefits from partnerships and collaborations with other aerospace firms, including joint ventures that enhance its market reach and technological capabilities. Furthermore, MTU invests in research and development, which not only helps in creating innovative products but also positions the company for future growth in the aerospace sector.
MTU Aero Engines Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and EBIT growth, robust free cash flow, and positive market trends, despite challenges such as a decline in military revenues, supply chain issues, and a weaker U.S. dollar. The company remains optimistic about capturing growth opportunities.Q3-2025 Updates
Positive Updates
Strong Revenue and EBIT Growth
Group revenues increased by 19% to nearly EUR 6.3 billion, and adjusted EBIT rose by 34% to EUR 995 million, resulting in a strong EBIT margin of 15.9%.
Robust Free Cash Flow
Free cash flow came in at EUR 279 million, representing a better-than-expected cash conversion rate of 39%.
Positive Market Trends
Passenger traffic rose by 5% year-to-date in August, and cargo traffic showed a growth of 3.3% year-to-date.
Order and Certification Milestones
Germany confirmed the procurement of 20 Eurofighter aircraft, and the GTF Advantage received EASA certification.
Expanding MRO and OEM Segments
Organic commercial OE revenues in U.S. dollars increased by a high single-digit percentage, and reported MRO revenues increased by 20% year-over-year to EUR 4.3 billion.
Negative Updates
Military Revenue Decline
Military revenues declined by 2%, mainly due to delayed deliveries in new engines and back-end loaded repair activities.
Ongoing Supply Chain Challenges
The production ramp-up is slower than needed to meet rising market demand, leading to airlines extending the service life of mature aircraft and engines.
Weaker U.S. Dollar Impact
The weaker U.S. dollar-euro exchange rate poses a challenge, particularly for European aerospace and defense companies.
GTF Compensation Payments
Compensation payments related to the GTF fleet management plan impacted free cash flow, with USD 100 million paid in the quarter.
Company Guidance
In the Q3 2025 earnings call for MTU Aero Engines AG, the company reported a robust performance, with group revenues increasing by 19% to approximately EUR 6.3 billion, aligning with their full-year target. Adjusted EBIT showed an impressive 34% growth, reaching EUR 995 million, resulting in a 15.9% EBIT margin. Free cash flow stood at EUR 279 million, reflecting a cash conversion rate of 39%. The commercial OEM segment's favorable mix and the MRO segment's strong profitability were key drivers. Passenger traffic grew by 5% year-to-date, and cargo traffic saw a 3.3% increase. The company raised its EBIT and free cash flow guidance based on the strong 9-month performance. Despite ongoing supply chain challenges, MTU remains optimistic about achieving its 2025 sales guidance across all subsegments. Global defense budgets are increasing, with significant contributions from programs like the Eurofighter and CH-53K helicopter. The company continues to manage tariff impacts and currency exchange risks through active hedging and process adaptations.MTU Aero Engines Financial Statement Overview
Summary
MTU Aero Engines shows strong revenue growth and improved profit margins. The balance sheet is stable with manageable leverage, but declining free cash flow raises concerns about future liquidity.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 | 7.97B | 7.41B | 5.36B | 5.33B | 4.19B | 3.98B |
| Gross Profit | 1.65B | 1.23B | 117.00M | 855.00M | 586.00M | 492.00M |
| EBITDA | 1.49B | 1.47B | 196.00M | 723.00M | 519.00M | 467.00M |
| Net Income | 982.00M | 633.00M | -102.00M | 331.00M | 222.00M | 139.00M |
Balance Sheet | ||||||
| Total Assets | 11.78B | 12.48B | 10.20B | 9.23B | 8.30B | 8.10B |
| Cash, Cash Equivalents and Short-Term Investments | 2.19B | 2.60B | 1.54B | 1.21B | 885.00M | 811.00M |
| Total Debt | 2.03B | 2.43B | 1.27B | 1.30B | 1.31B | 1.45B |
| Total Liabilities | 7.87B | 9.05B | 7.27B | 6.12B | 5.54B | 5.47B |
| Stockholders Equity | 3.84B | 3.36B | 2.86B | 3.03B | 2.68B | 2.55B |
Cash Flow | ||||||
| Free Cash Flow | 37.00M | 74.00M | 365.00M | 326.00M | 200.00M | 130.00M |
| Operating Cash Flow | 357.00M | 714.00M | 777.00M | 728.00M | 567.00M | 386.00M |
| Investing Cash Flow | -301.50M | -603.00M | -420.00M | -400.00M | -345.00M | -245.00M |
| Financing Cash Flow | 368.00M | 736.00M | -294.00M | -224.00M | -276.00M | 504.00M |
MTU Aero Engines Technical Analysis
Neutral
221.36
Price Trends
219.89
Positive
218.08
Positive
196.42
Positive
Market Momentum
0.45
Positive
50.00
Neutral
85.78
Negative
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 221.36 is below the 20-day moving average (MA) of 224.40, above the 50-day MA of 219.89, and above the 200-day MA of 196.42, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 85.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
| ― | $320.53B | 40.52 | 42.74% | 0.43% | -19.21% | 31.83% | |
| ― | $86.43B | 21.74 | 26.15% | 1.47% | -0.14% | 72.35% | |
| ― | $54.86B | 32.74 | 8.90% | 1.64% | 2.93% | 43.29% | |
| ― | $239.53B | 36.68 | 10.49% | 1.46% | 8.79% | 39.63% | |
| ― | $24.40B | 26.24 | 23.85% | 0.55% | 46.08% | ― | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
| ― | $167.38B | -13.50 | ― | ― | 2.41% | -193.57% |
* Industrials Sector Average
MTUAY
MTU Aero Engines
221.36
56.97
34.66%
BA
Boeing
223.00
70.02
45.77%
GE
GE Aerospace
312.84
139.86
80.85%
LHX
L3Harris Technologies
291.14
50.81
21.14%
NOC
Northrop Grumman
595.95
100.59
20.31%
RTX
RTX
179.24
58.86
48.90%
MTU Aero Engines Corporate Events
MTU Aero’s Earnings Call: Strong Growth and Ambitious Targets
Jul 25, 2025
MTU Aero’s recent earnings call painted a picture of robust financial health and strategic progress, despite some challenges. The company reported significant revenue growth and record order intakes, setting ambitious targets for 2030. While the military segment and tariff environment pose challenges, the overall sentiment was positive, with the highlights outweighing the lowlights.
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.