2024 04 30 095345
MTU Aero Engines reported a strong 1st quarter, with adjusted revenues up 8% year over year to €1.54 billion, with Adjusted EBIT of €218 million, compared with €212 million in the prior year.
“MTU managed to match the record level of the first quarter of 2023, despite the challenges of the Geared Turbofan fleet management plan and the continued challenging supply chain situation,” stated Lars Wagner, CEO of MTU Aero Engines. “In view of this, we consider that we are well-positioned to achieve the ambitious targets we have set for the 2024 fiscal year.” He expanded that guidance to 2025, stating “our target remains our simple formula 8-1-25: We want to generate revenue of €8 billion and an operating profit of €1 billion in 2025.”
Commercial maintenance business revenues increased by 12% to €1.14 billion in the first three months of 2024. The largest revenue generators with the PW1100G-JM for the A320neo family, the V2500 from the A320ceo family, and the CF34 engine for regional and business aircraft. CFO Peter Kameritsch indicated “supply chain problems mean longer turnaround times in maintenance. That holds back further MRO activities, so revenue growth was at the lower end of our expectations in the first three months. We are already making a strong contribution to executing the Geared Turbofan fleet management plan. We expect the availability of spare parts to improve further during the year. That should raise the Geared Turbofan’s share of MRO business above the present level of 33%.”
Order backlog in commercial engines grew to €25.42 billion at quarter end. “The sustained high order backlog shows the high demand for our products and services. In light of the Geared Turbofan fleet management plan and supply chain problems, what is important now is to focus on working through the orders swiftly – naturally without compromising on our high quality standards,” said Wagner.
The Bottom Line
With strong demand for both maintenance and commercial engines, as well as improvement in the military business, MTU looks well positioned to meet is guidance for 2024 and 2025. The key, the Geared Turbofan fleet management plan, looks to be on track both at Pratt & Whitney and MTU. The success to date has given management increased confidence in meeting their financial goals.
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