Published by Global Banking & Finance Review®
Posted on February 24, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleMTU Aero Engines posted Q4 adjusted revenue of €2.44B, beating a €2.39B consensus as GTF issues fuel maintenance demand. The company projects 2026 revenue and profit above analyst expectations.
By Maria Rugamer, Emanuele Berro and Alexander Hübner
Feb 24 (Reuters) - MTU Aero Engines forecast 2026 sales and earnings broadly in line with market expectations, but said partner Pratt & Whitney's GTF engine recall was weighing on cash flow, sending its shares lower on Tuesday.
The engine maker has been navigating the fallout from Pratt & Whitney's warning last year that a powder metal defect could cause cracking in some engine components. The issue has grounded hundreds of Airbus A320neo aircraft for accelerated inspections and repairs.
MTU's shares were down 6% at 1050 GMT, as investors digested weaker‑than‑expected quarterly free cash flow of 99 million euros ($117 million). As a partner in the troubled engine programme, MTU is responsible for 18% of the lingering costs of the recall.
"The GTF fleet management plan continues to have an impact but remains on track," the company said in a presentation. It is optimistic the process can be completed by year‑end, CEO Johannes Bussmann added during a press conference.
He said recall‑related costs were as planned last year and were expected to remain so also in 2026.
The results offer the clearest read yet on the financial fallout from the recall, which has driven heavy shop‑visit volumes in MTU's maintenance, repair and overhaul business while pressuring margins.
MTU guided for 9.2 billion to 9.7 billion euros in adjusted revenue and 1.35 billion to 1.45 billion in adjusted operating profit in 2026, as work on the recalled engines upholds demand, partly offsetting the persistent costs.
At midpoint, these targets were in line or slightly above market expectations, a company-provided poll showed. Last year's revenue and operating profit also matched forecasts.
However, based on J.P. Morgan calculations, the guidance for free cash flow equal to 45-55% of net income translates to around 500 million euros, below a 2026 consensus of 545 million euros.
"FCF guidance is weaker than expected, and in line 2026 EBIT guidance likely offsets positivity from the Q4 2025 beat," analysts from UBS said in a note.
($1 = 0.8485 euros)
(Reporting by Maria Rugamer and Emanuele Berro in Gdansk, Alexander Huebner in Munich; editing by Milla Nissi-Prussak.)
MTU Aero Engines’ Q4 revenue slightly beat estimates on strong maintenance demand, with 2026 revenue and profit guidance set above analyst expectations.
Adjusted revenue was €2.44 billion, ahead of a €2.39 billion company-compiled consensus.
Ongoing issues with Pratt & Whitney’s GTF engines are leading to more frequent shop visits, supporting MTU’s MRO business.
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