Strong commercial engine maintenance revenue and contribution from its share of the EJ200 programme for the Eurofighter Typhoon helped MTU Aero Engines to offset issues with the Pratt & Whitney PW1000G geared turbofan and supply chain challenges in the first quarter.
Detailing its first-quarter performance on 30 April, the German propulsion specialist said adjusted revenue rose by 8% to €1.67 billion ($1.78 billion), up from €1.54 billion in the same period a year earlier. Adjusted EBIT stood at €218 million, marginally above the €212 million recorded last year.
Much of that positive performance was driven by the military engines business, where revenue climbed 21% to €124 million from €103 million in the first quarter of 2023.
MTU says “the main revenue generator” was the Eurojet EJ200 engine for the Eurofighter but there was also increased contribution from the work on the New Generation Fighter engine it is developing in partnership with Safran and ITP Aero through the EUMET venture.
Commercial maintenance revenue increased by 12% to €1.14 billion from €1.02 billion. However, the rise was at the lower end of its guidance, says chief financial officer Peter Kameritsch, noting that supply chain issues caused longer turnaround times.
“MTU managed to match the record level of the first quarter of 2023, despite the challenges of the geared turbofan fleet-management plan and the continued challenging supply chain situation,” says chief executive Lars Wagner.
“In view of this, we consider that we are well-positioned to achieve the ambitious targets we have set for the 2024 fiscal year.”
MTU aims to bring in revenue of between €7.3-7.5 billion this year, with an EBIT margin of over 12%.
In addition, Wagner says MTU is committed to its 2025 guidance, when it aims to generate revenue of €8 billion and an operating profit of €1 billion.
In the commercial engine business, revenue totaled €433 million in the first quarter, compared with €446 million in the same period of 2023.
MTU’s order backlog grew 4% over the preceding quarter and is valued at €25.4 billion.
That figure is dominated by work on PW1000G-series engines – predominantly the PW1100G for the Airbus A320neo – where it is a risk- and revenue-sharing partner. Its contribution to each engine is up to 18%, depending on the variant, and it is responsible for final assembly of one-third of all PW1100Gs.
“In light of the geared turbofan fleet-management plan and the supply chain problems, what is important now is to focus on working through the orders swiftly – naturally without compromising on our high quality standards,” says Wagner.
P&W is working through a massive inspection programme for PW1000G engines after discovering defects introduced to certain components during the manufacturing process.
MTU last September said it would take a one-off €1 billion charge related to the issue and expected a cash-flow impact over the 2024-2026 period.
