MTU Aero Engines pointed to improvements in the geared turbofan (GTF) engine situation and in the broader supply chain as it confirmed its recently hiked outlook for the full year, which includes the prospect of revenue growth across all business areas.
Commercial maintenance is likely to see the strongest gains, with percentage growth in organic revenue reaching the mid to high teens, MTU said, and it expects GTF MRO to account for around 40%. Referring to the Pratt & Whitney GTF engine, whose issues have led to extra inspections and have caused knock-on effects for MRO providers including MTU, outgoing CEO Lars Wagner said the company was making further progress on the fleet management plan.
“We expect the [aircraft on ground] situation to improve in the second half of the year. This is supported by ramping up the GTF MRO output in our shops. This positive momentum is reflected in securing very strong orders for both narrowbody and widebody engines,” Wagner said.
Referring to GTF compensation payments, MTU CFO Katja Garcia Vila said: “We have had an impact on our cash flow in the first half of the year of approximately $150 million, and we expect for the full year to have a similar impact as we had in the last year, which was around $390 million.”
For 2026, an impact of around $200 million is expected. MTU’s free cash flow in the first half of 2025 doubled year-on-year to €212 million ($249 million). “As expected, free cash flow in the first six months was affected by the Geared Turbofan fleet management plan. We managed to counteract this with strong cash inflows from the MRO segment and improved earnings performance and so generate free cash flow in line with our expectations,” Garcia Vila said.
Wagner also said the overall supply chain was improving. “What we have seen over the last couple of weeks and months maybe is some shortages of small parts, mainly due to the fire at the SPS facility in the U.S.,” the CEO said. “But, in generic terms, the supply chain runs well. What’s always at question and where we see a very good development is the structural castings and the isothermal forgings from Pratt & Whitney for the powdered metal parts. Here, we have seen a major increase over the past couple of months and years. So that remains on a good track.”
Within the company’s overall half-year results, adjusted revenues in MTU’s OEM business rose 20%, commercial engines adjusted revenue was up 27%, military engines adjusted revenue was down 5%, and adjusted commercial maintenance revenue was up 22%. Referring to the military business, Garcia Vila said, “There were revenue shifts in the repair business that should balance out over the course of the year.” The main revenue generator in this segment was the Eurofighter, the company added.
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