MTU Aero Engines AG·Industrials

MTU is a leading aerospace engine specialist trading as if a temporary disruption has permanently impaired its business. The company trades cheap on an absolute and relative basis despite the resolution of the problem being on a clear and improving trajectory. Prior to the discovery of the GTF powder metal issue, MTU and Safran traded in lockstep, but now there is a 40% gap.

MTU Aero Engines AG (MTUAY) Q1 2026 Earnings Call Transcript

German engines maker MTU Aero Engines posted a first-quarter operating profit above expectations on Thursday, showing no visible impact from the ongoing war in Iran in the reported period.

MTU Aero Engines (MTUAY, MTUAF) remains a strong buy, with recent share price declines creating a more attractive long-term entry point. 2025 delivered 16% sales growth and 29% EBIT growth, with margins reaching 15.5%—years ahead of 2030 targets, despite GTF-related headwinds. 2026 guidance calls for 8.6% sales growth and 3.7% EBIT growth, with margin compression from higher GTF mix and ramp-up costs, but free cash flow could rise 19–45%.
MTU Aero Engines AG, together with its subsidiaries, develops, manufactures, markets, and maintains commercial and military engines, and aero derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments, Commercial and Military Engine Business; and Commercial Maintenance Business. The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, and business jets; military aircraft engines for fighter aircraft, helicopters, and transport aircraft; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various brush seals. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.
Industrials
Aerospace & Defense
12,892
2010-01-20
0.89