Finance
MTU Aero Engines shares rise as tariffs headwinds priced in
Published by Global Banking & Finance Review®
Posted on April 29, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 29, 2025
2 min readLast updated: January 24, 2026
MTU Aero Engines shares rose after earnings beat expectations, with U.S. tariffs impact largely priced in. Revenue forecast adjusted due to exchange rate changes.
(Reuters) -German engine manufacturer MTU Aero Engines' shares rose on Tuesday, rebounding after previous losses as quarterly earnings beat market expectations, with analysts saying the impact from U.S. tariffs is largely factored into the stock.
Shares in MTU, which were down 8.6% year-to-date before Tuesday, were up 1.8% at 0821 GMT, after rising as much as 3.9% earlier.
The supplier for Airbus and Boeing said late on Monday it expects U.S. tariffs to have a "direct impact" in the mid to high double-digit million euro range this year, if no mitigation measures are implemented.
MTU also cut its outlook for adjusted revenue in euros due to the recent development of the U.S. dollar exchange rate, impacted by global uncertainty.
It now expects adjusted revenue in euros for 2025 to come in at a range of 8.3 billion euros to 8.5 billion euros ($9.46 billion - $9.69 billion), based on an U.S. dollar to euro exchange rate of 1.10, instead of the previous rate of 1.05, it said.
"We think the bad news on foreign exchange and tariffs is largely priced into the shares and we do not expect a major reaction," analysts at J.P. Morgan said.
MTU also posted first-quarter results on Monday ahead of market expectations.
Adjusted earnings before interests and taxes came in at 300 million euros, above analysts' expectation of 259 million euros, according to a consensus provided by the company.
($1 = 0.8772 euros)
(Reporting by Isabel Demetz and Paolo LaudaniEditing by Ludwig Burger)
The article discusses the rise in MTU Aero Engines' shares as the impact of U.S. tariffs is priced in.
MTU expects a significant revenue impact from U.S. tariffs, but the effect is largely priced into the stock.
MTU's shares rose 1.8% after quarterly earnings exceeded market expectations.
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