By Thomas Blackwood
Feb 24, 2026, © Leeham News: MTU Aero Engines saw continued growth across its divisions in 2025 with revenue at an all-time high and continued MRO momentum, according to the company’s full-year figures published on Tuesday.
Adjusted revenue for the year was up 16% from €7.5 billion in 2024 ($8.84 billion) to €8.7 billion. Adjusted operating profit reached €1.4 billion, up 29% on the previous record of €1.1 billion set last year, and adjusted EBIT margin rose from 14% to 15.5%.
Adjusted net income also reached a new high of €968 million, up 27% year over year from €764 million. The results were in line with market expectations.
MTU said the revenue growth was driven by its commercial OEM division as well as the strong demand for engine maintenance. However there are still doubts over the strength of the supply chain. MTU said that while “improvements are evident … further progress is needed” to streamline the production and procurement of parts.
GTF issues linger
MTU partner Pratt & Whitney’s troubled geared turbofan (GTF) engine program continues to have an impact. The German engine manufacturer said the expected GTF MRO ramp up in Q3 and Q4 had fully materialized, and its GTF Fleet management program was on track, helped by improved turnaround times, a stabilizing supply chain and higher MRO output.
GTF MRO revenue accounted for 41% of total MRO revenue across the business. This is forecast to sit at 40-45% in 2026, supported by Pratt & Whitney’s working assumption that the fallout from the PW1000G recall would stretch to the end of the decade.
Pratt & Whitney GTF Engine Cutaway
That said, MTU managed to more than double its free cash flow in the fiscal year 2025 to €378 million, up from €183 million. This was better than originally anticipated and in line with the guidance from October 2025. “This marks another record level in recent years, even while carrying the burden of the GTF fleet management program, and it proves our progress in improving our cash conversion,” CFO Katja Garcia Vila told analysts on the Tuesday morning earnings call.
MTU has proposed a dividend of €3.60 per share – an increase of €1.40 or 64% over the previous year and a payout ratio of 20%. Garcia Vila said the company intended to return to the target payout ratio of 40%, which had been temporarily suspended due to the costs arising from the GTF fleet management plan, in a sign of recovery from the worst of the GTF woes.
Military revenues flat
Revenue in the military business flatlined in 2025 at €614 million, versus a 2024 figure of €612 million. “Despite a strong fourth quarter, sales in the military business fell short of our expectations. This was primarily due to revenue shifts caused by ongoing supply chain issues,” said Garcia Vila.
On the Future Combat Air System (FCAS), while doubts have been cast over the Franco-German-Spanish project, MTU remains confident that the partner nations will find a “constructive way forward.”
“It is essential for Europe’s long term defense sovereignty to develop their own military products, and MTU is fully committed to do this,” CEO Johannes Bussmann said on the call. “In short, through our programs, partnerships and long standing expertise, MTU contributes meaningfully to Europe’s long term defense readiness.”
Technological progress
Elsewhere, MTU achieved several notable technological milestones over the year, including FAA and EASA certification of its GTF Advantage engine, which is a more-durable, more fuel efficient PW1100G variant with 4-8% more takeoff thrust.
The IAE consortium also publicly reaffirmed its commitment to advancing the GTF architecture as the foundation for the next generation of narrowbody engines, and MTU signed an MoU with Airbus to jointly advance hydrogen fuel cell propulsion.
Bussmann said MTU was growth focused, with plans to expand the company’s footprint internationally and invest in even more technological capabilities through sites in Hanover, Berlin, China, and the new LEAP facility in Fort Worth, Texas.
Bussmann said MTU had “made the most of market opportunities in 2025 and stayed on our successful course despite ongoing challenges.” He added: “The long-term growth prospects for our industry are positive, and we believe we are extremely well positioned to reap the benefits.”
Forecast for 2026
MTU’s order backlog at the end of 2025 stood at €29.5 billion, up 3% year-on-year, with the PW1100G-JM and the V2500 accounting for the largest share. The company has set a target of €9.2-9.7 billion for adjusted revenue in the fiscal year 2026, with the commercial business likely to see the strongest gains.
An adjusted EBIT of €1.35-1.45 billion is anticipated in 2026. MTU has set itself a revenue target of between €13 billion and €14 billion by 2030.
Pratt-Airbus dispute
Last week, Airbus CEO Guillaume Faury issued a warning to engine-maker Pratt & Whitney over problems caused by the powdered metal coating contamination misstep, which is hampering production of both the A320neo and the A220 families.
According to Airbus, the engine-maker has focused more effort on addressing in-service fleet issues, while neglecting to provide the numbers of new engines to the aircraft OEM for deliveries.
“On the A320 family, the continued failure to commit to the number of engines ordered by Airbus is negatively impacting this year’s guidance and the ramp-up trajectory for this year,” Faury said.
Airbus was ready to “enforce contractual rights” with regard to the engines being supplied to the airframe maker, Faury said.
GTF’s at a Pratt & Whitney MRO Facility. Image: RTX
Asked about the dispute, Bussmann said: “The discussions on the deliveries between Pratt & Whitney and Airbus are still ongoing…Obviously we have not come to a conclusion so far, but the two partners are negotiating, and so that’s what I think we will have to wait for.
“I’m pretty sure that they will find a solution. The orders have been placed, and we in the consortium have discussed what we can deliver as a total and now Pratt is discussing with Airbus how we deal with this in the relationship to Airbus and our other customers.”
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