- MTU Aero reported a strong Q2 performance with an adjusted EBIT of €357 million, a 42% increase year-over-year, surpassing the estimated €292.1 million.
- The OEM business recorded an adjusted EBIT of €239 million, growing by 52% from the previous year.
- Commercial Maintenance saw a 22% rise in adjusted EBIT, totaling €116 million.
- The adjusted EBIT margin improved to 17.4% from 14.4% year-over-year, exceeding the estimate of 14.6%.
- The OEM business achieved an adjusted EBIT margin of 30.2%, up from 25.5% y/y, surpassing the 26.1% estimate.
- Commercial Maintenance adjusted EBIT margin increased to 9.1% as compared to 8.1% y/y, beating the estimated 8.56%.
- Net income on an adjusted basis reached €258 million, marking a 39% increase, outperforming the projected €205.4 million.
- Total revenue rose to €2.09 billion, a 20% increase from the previous year.
- OEM business revenue jumped 28% y/y, reaching €791 million, exceeding the estimate of €679.3 million.
- Revenue from commercial engines grew by 37% to €645 million, beating the forecast of €521.1 million.
- Military engine revenue slightly declined by 0.7% to €147 million, below the expected €167.9 million.
- Commercial maintenance revenue increased by 9.9% to €1.28 billion yet did not meet the estimated €1.33 billion.
- Free cash flow was reported at €212 million.
- Earnings per share (EPS) significantly increased to €5.34 from €2.96 y/y, outpacing the expected €3.68.
- The company maintains its yearly revenue forecast between €8.6 billion and €8.8 billion, above the €8.56 billion estimate.
- Analyst recommendations include 11 buy ratings, 9 hold ratings, and 4 sell ratings.
A look at Mtu Aero Engines Ag Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
MTU Aero Engines AG, a company specializing in the development and manufacture of engines, as well as offering commercial engine services, shows a promising long-term outlook based on the Smartkarma Smart Scores. With a high Growth score of 5, indicating strong potential for future expansion, the company seems poised for considerable development in the coming years. Additionally, MTU Aero Engines AG demonstrates a solid Resilience score of 4, suggesting a stable and robust foundation to weather market fluctuations.
Furthermore, the company’s Momentum score of 4 hints at positive upward movement in its performance, while both the Value and Dividend scores of 2 each indicate room for improvement in these areas. Overall, with a favorable combination of Growth, Resilience, and Momentum scores, MTU Aero Engines AG appears to be positioned well for long-term success in the industry.
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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