MTU Aero Engines reports higher profit on strong military demand
By Emanuele Berro
MTU Aero Engines Q1 Results and Business Developments
April 30 (Reuters) - German engine maker MTU Aero Engines posted a first-quarter operating profit that was above expectations on Thursday, benefiting from strong military demand.
Financial Performance
The company reported first-quarter adjusted earnings before interest and taxes (EBIT) of 320 million euros ($373 million), above a company-provided average analyst consensus of 310 million euros.
Shares in MTU were down 0.8% at 0706 GMT, in line with the broader market.
Revenue Growth
The Munich-based firm also reported a slight increase in quarterly adjusted revenue, boosted by a strong military business (+25% year-on-year).
Strategic Focus on Military and Defence
MTU has been looking to build up its defence business, as higher military spending in Europe lifts demand for engines and related technologies, while reducing reliance on the commercial aviation cycle over the longer term.
Acquisition and Expansion
It acquired Cologne‑based drone engine startup AeroDesignWorks GmbH earlier in April, marking its entry into drone propulsion and strengthening its military footprint.
Commercial Maintenance Business
Revenue from the commercial maintenance business, where contracts are largely dollar‑denominated, rose 8% year-on-year, supported by a stronger currency.
Currency Impact
"Despite rising uncertainty in light of the situation in Iran, we remain confident that we will reach our targets for 2026,” CEO Johannes Bussmann said.
Order Backlog and Outlook
MTU pointed to its substantial order backlog, unaffected growth of military programs and steady shop‑visit demand in maintaining its full-year outlook.
($1 = 0.8576 euros)
(Reporting by Emanuele Berro, editing by Friederike Heine and Matt Scuffham)
