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• Group Revenue: Nearly EUR2.1 billion, a 25% increase from last year.

• Adjusted EBIT: EUR300 million, a 38% increase, with a margin of 14.3%.

• Adjusted Net Income: EUR221 million, a 41% improvement.

• Free Cash Flow: EUR150 million.

• OEM Segment Revenue: EUR620 million, an 11% increase.

• Commercial Business Revenue: EUR507 million, a 17% increase.

• Military Revenue: EUR113 million, a small decrease.

• Adjusted EBITDA for OEM: EUR176 million, a 35% increase, with a margin of 28.4%.

• Commercial MRO Segment Revenue: EUR1.5 billion, a 33% increase.

• Adjusted EBIT for MRO: EUR125 million, a 42% increase, with a margin of 8.2%.

• 2025 Revenue Guidance: Adjusted to EUR8.3 billion to EUR8.5 billion.

• Free Cash Flow Guidance for 2025: EUR250 million to EUR300 million.

• Warning! GuruFocus has detected 8 Warning Sign with MTUAF.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MTU Aero Engines AG (MTUAF) reported a 25% increase in group revenues, reaching nearly EUR2.1 billion in the first quarter of 2025.

• The GTF Advantage received FAA certification in February 2025, marking a significant milestone for the GTF engine family.

• The company opened a second MRO shop in China, enhancing its capacity and positioning it as the largest MRO facility globally.

• MTU Aero Engines AG (MTUAF) expanded its footprint in North America, introducing MRO services for LEAP-1A and 1B engines and GEnx full engine MRO services.

• Adjusted EBIT increased by 38% to EUR300 million, with a strong margin of 14.3%, driven by a favorable business mix in commercial OEM.

Negative Points

• The global tariff environment creates uncertainties, potentially impacting MTU Aero Engines AG (MTUAF)'s profitability.

• US tariffs have caused confusion and uncertainty, with a potential mid- to high-digit million euro impact before mitigation.

• The company's revenue outlook in euros has been reduced due to recent exchange rate developments.

• Military revenues saw a small decrease, reflecting a typical slow start to the year.

• The company faces potential headwinds from additional US tariffs, which could affect profitability despite mitigation efforts.

Q & A Highlights

Q: Can you provide more details on the potential impact of tariffs and the mitigation measures MTU Aero Engines AG is considering? A: Lars Wagner, CEO, explained that the tariff situation is volatile, and MTU is assessing the impact on OEM and MRO operations. They are exploring countermeasures such as rerouting engine modules and revisiting shipments to avoid tariffs. Contract management is also being reviewed to determine if tariffs can be passed to customers. Wagner remains optimistic about finding a solution due to the industry's importance globally.