- MTU Aero reported first-quarter adjusted EBIT of €300 million, surpassing estimates of €260.7 million.
- The OEM business reported an adjusted EBIT of €176 million, marking a 35% increase year-over-year (y/y).
- Commercial Maintenance adjusted EBIT was €125 million, up 42% y/y.
- The overall adjusted EBIT margin improved to 14.3%, higher than the previous year’s 13% and above estimates of 13.3%.
- The OEM business adjusted EBIT margin stood at 28.4%, exceeding the estimate of 23.9%.
- Commercial Maintenance adjusted EBIT margin was 8.2%, slightly above the estimated 8.05%.
- Adjusted net income increased by 40% y/y to €221 million, exceeding the estimate of €202.8 million.
- Total revenue for the quarter was €2.11 billion, a 28% increase y/y.
- OEM business revenue of €620 million reflected an 11% increase y/y but was slightly below the estimate of €632.1 million.
- Commercial engine revenue grew 17% y/y to €507 million, surpassing the estimate of €502.7 million.
- Military engine revenue declined by 8.9% y/y to €113 million, falling short of the estimate of €132.2 million.
- Commercial maintenance revenue was reported at €1.52 billion, significantly outperforming the estimate of €1.34 billion.
- Free cash flow rose to €150 million compared to just €16 million y/y.
- The company maintains a full-year revenue forecast of €8.3 billion to €8.5 billion, aligning with external estimates of €8.5 billion.
- MTU Aero predicts mid-teens percentage growth in adjusted EBIT for 2025.
- Free cash flow for 2025 is expected to remain in the low triple-digit million euro range, between €250 million and €300 million.
- Market recommendations include 15 buys, 8 holds, and 3 sells.
A look at Mtu Aero Engines Ag Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking ahead, Mtu Aero Engines Ag‘s long-term outlook appears promising as indicated by the Smartkarma Smart Scores. With a strong emphasis on growth and resilience, the company is positioned well for future expansion and sustainability. The above-average score in growth suggests that Mtu Aero Engines Ag is expected to see significant development and progress in the coming years, while its high resilience score reflects its ability to withstand challenges and maintain stability.
Although the company received moderate scores in value and dividend, the overall outlook remains positive due to the high scores in growth and resilience. Additionally, the decent momentum score indicates a steady pace of advancement. With its focus on developing and manufacturing engines, along with providing commercial engine services globally, Mtu Aero Engines Ag is well-positioned to capitalize on opportunities and navigate through market fluctuations effectively.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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