Published by Global Banking & Finance Review®
Posted on July 24, 2025
3 min readLast updated: January 22, 2026
Add as preferred source on GoogleMTU Aero Engines reported a 41% profit increase in Q2 due to strong spare parts demand. Despite concerns over the SCAF project, MTU remains unaffected.
By Isabel Demetz and Maria Rugamer
(Reuters) -German engine manufacturer MTU Aero Engines reported a 41% rise in second quarter operating profit on Thursday, beating market estimates, driven by strong sales in its spare parts and commercial maintenance businesses.
The Airbus and Boeing supplier said its adjusted earnings before interest and taxes were 357 million euros ($420.22 million) in the quarter, above last year's 252 million euros and a company-provided consensus of 300 million euros.
"A profitable revenue mix in series production with a high proportion of spare and lease engines bolstered earnings, as did high spare parts sales," finance chief Katja Garcia Vila said in a statement.
In June, MTU said delays in aircraft deliveries from Airbus and Boeing had resulted in older engines staying in service longer, benefiting its maintenance, repair and overhaul business.
Fewer aircraft deliveries reflect positively on the German engine manufacturer, as new engine models are loss making.
The Germany-based company had an order backlog of 25 billion euros as of June 30, down 13% compared to December of last year.
However, $1.75 billion in Paris Air Show orders were not yet reflected in the backlog, it said in a statement.
SCAF FIGHTER JET PROJECT CONCERNS
MTU is also delivering engines as part of Europe's next-generation fighter jet project, the Future Combat Air System (SCAF), and aims to deliver an offer for the upcoming phase two by the end of July.
The Franco-German-Spanish programme is facing uncertainty after French warplane maker Dassault Aviation, in a growing spat with Airbus, flagged fresh concerns over the project's leadership and delays.
German Chancellor Friedrich Merz and French President Emmanuel Macron said on Wednesday they expected to have more clarity on the project by the end of August.
However, MTU was not affected by these uncertainties, CEO Lars Wagner said in a call with journalists.
"We have completed all of the client's milestones to date and have been paid accordingly, so we can continue working on our milestones," Wagner said.
He is set to leave MTU next month ahead of his appointment as the CEO of Airbus' commercial aircraft business in January 2026.
($1 = 0.8495 euros)
(Reporting by Isabel Demetz and Maria Rugamer in Gdansk, Alexander Huebner in Munich; Editing by Louise Heavens, Matt Scuffham and Milla Nissi-Prussak)
Operating profit is the income generated from a company's core business operations, excluding deductions of interest and taxes. It reflects the efficiency of a company's operations.
An order backlog refers to the total value of orders that a company has received but has not yet fulfilled. It indicates future revenue potential.
Maintenance, repair, and overhaul (MRO) refers to the services required to keep equipment and machinery in good working condition, ensuring operational efficiency.
Adjusted EBIT is a measure of a company's profitability that excludes certain expenses, providing a clearer view of operational performance.
A profitable revenue mix refers to the combination of products or services that generate the highest profit margins for a company, enhancing overall financial performance.
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