MTU Aero Engines Raises 2026 Revenue Outlook

MTU Aero Engines increased its 2026 revenue forecast to a range of €9.5 to €9.7 billion, a revision upwards from the previous lower end of €9.2 billion, fueled by heightened demand for aircraft spare parts and maintenance services. The company cited a strengthening US dollar against the euro as a contributing factor to the improved outlook. This adjustment comes despite expectations for slower growth in new engine business, as indicated in a recent announcement.

During the third quarter, MTU’s revenue increased by nearly 14% year-over-year, reaching €2.4 billion and exceeding analyst expectations. However, the company’s net profit for the quarter decreased by 9% to €227 million. This decline was attributed to the revaluation of liabilities resulting from the changing Dollar-Euro exchange rate, as detailed in the filing. The adjusted operating profit (EBIT) increased by 3% to €349 million, falling short of analyst estimates.

MTU anticipates a free cash flow conversion rate of 55 to 60 percent of adjusted EBIT, representing the upper end of the target range previously raised earlier in the year. CEO Johannes Bussmann stated that the company’s business is largely unaffected by global economic developments, even in the face of rising kerosene prices impacting airline operations. The demand for more fuel-efficient engines, in which MTU participates, remains strong, and the company is positioned as part of the solution, not the problem.

Despite the revenue growth, the company expects its adjusted EBIT to remain between €1.35 and €1.45 billion, potentially indicating stagnation compared to the previous year. The interplay between increased revenue, currency fluctuations, and a stable EBIT forecast suggests a complex operating environment where gains in one area are offset by challenges in another. The results reflect the benefits of a strong aftermarket service business alongside the impacts of a volatile currency market.