By Tom Batchelor. October 21, 2025, © Leeham News: Revenue and earnings at MTU Aero Engines grew sharply in the first nine months of 2025, with a strong commercial engine and maintenance business driving profitability at the German-headquartered supplier to Airbus and Boeing.
Adjusted revenue climbed 19% from €5.3 billion ($6.15 billion) to €6.3 billion, when comparing January-September 2024 to the same period in 2025.
The company’s adjusted operating profit grew by 34% to €995 million (versus €744 million January-September 2024).
CFO Katja Garcia Vila told analysts on Thursday’s earnings call that “positive market trends remain intact”, as she forecast “significant opportunities outweighing existing challenges” for the near term.
OEM business out in front
MTU achieved revenue growth of 20% across its commercial engine and commercial maintenance segments over the nine-month period, with the Pratt & Whitney GTF engine family – powering the A320neo family, the A220 and Embraer’s E2 jets – and the GEnx – for Boeing’s 787 Dreamliner and the Boeing 747-8 – the main revenue drivers.
In the commercial engine business, adjusted revenue climbed year-on-year from €1.4 billion to €1.6 billion in the period to September 2025. The commercial maintenance business saw adjusted revenue up from €3.6 billion to €4.3 billion.
Notably, OEM business earnings rose by 44% to €640 million, up from €444 million, while the adjusted EBIT margin grew from 24.7% to 31.1%.
MTU’s OEM segment performed particularly well. Credit: MTU Aero Engines
Garcia Vila said a favorable product mix and particularly a growth in spare parts underpinned that strong performance.
Backlog down, cash flow up
By the end of September, MTU’s order backlog stood at €24.1 billion, down from €28.7 billion at the end of 2024 (rather than September 2024), with the drop attributed to exchange rate effects.
Garcia Vila highlighted the weaker US dollar-Euro exchange rate, which she said “poses a challenge, particularly for European aerospace and defense companies”.
MTU is mitigating this effect through active hedging activity, and the company said it “remains well positioned to capture growth opportunities across both commercial and military segments.”
MTU’s free cash flow reached €279 million in the first nine months of 2025, compared with €213 million in the same period of the previous year. Garcia Vila said this represented a “better than expected cash conversion rate of 39%, a strong development despite ongoing headwinds from the GTF fleet management program.”
Those GTF headwinds are being countered by what MTU said was “steady progress” in the company’s fleet management program of the troubled engine.
“Essential aspects include the improvement of parts availability, expanded MRO capacity and better turnaround time, all of which are progressing,” said Garcia Vila.
“Additionally, we support customers and airlines by providing spare and lease engines. To summarize, we are on track.”
MTU said it was “on track for new records” with its latest earnings results. Credit: MTU Aero Engines
Adding to the program’s momentum, the GTF Advantage secured EASA certification in October 2025, paving the way for deliveries to airlines and an official entry into service next year. CEO Johannes Bussmann confirmed that MTU expects to begin final assembly and start delivering those engines by the middle of 2026.
Recent orders underscore ongoing confidence in the technology. LATAM Airlines and Avelo Airlines have placed a combined order for 174 Embraer E195-E2 jets, including options, all exclusively powered by the GTF engine.
Reflecting on the positive outlook for the commercial sector, Garcia Vila told analysts that global passenger traffic was expected to grow steadily by 3-4%, “driving sustained demand for new aircraft and aftermarket services.”
She added: “While the supply chain continues to recover, it still remains below pre-Covid stability. That is why the production ramp up is slower than needed to meet rising market demand.
“Consequently, airlines are extending the service life of mature aircraft and engines, which in turn drives strong MRO demand and results in more extensive shop visits.
“This also keeps demand for spare and leased engines at elevated levels, with prices remaining very attractive.”
Eurofighter orders give military division extra lift
On the military side, revenues fell slightly, to €418 million, compared with €426 million in the same nine-month period of the previous year, though MTU noted in its earnings statement that “revenue shifts … should balance out again by the end of the year.”
Garcia Vila said the division was supported by rising global defense budgets, adding: “For MTU, momentum in the Eurofighter program remains strong, with new orders from core nations and international customers.”
Indeed, the main revenue generator was the EJ200 engine for the Eurofighter. The program received a boost earlier in October when the German Air Force signed a contract for an additional 20 Eurofighters for deliveries between 2031 and 2034.
On tariffs, MTU is now benefitting from an agreement reinstating the general exception from tariffs for aviation products. However, the exception does not include other products, such as industrial gas turbines, and MTU is still waiting for tariff clarification on other items such as military engine stands.
Notwithstanding the lack of tariff certainty, Garcia Vila said that “significant progress” had been made to “mitigate these challenges”. She added: “We are continuously adapting our internal processes to meet all requirements. We analyze on an ongoing basis how to optimize our part streams to reduce any impact. In addition to that, we are also working on contractual agreements to further reduce our exposure.”
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