By Mauro Orru
MTU Aero Engines has confirmed its guidance for the year, which was raised last month, following higher earnings and revenue in the second quarter. The German aircraft-engine manufacturer reported revenue of €1.55 billion ($1.71 billion), up from €1.29 billion in the same period last year.
Positive Signs for the Industry
According to Chief Executive Lars Wagner, the company’s recovery is being supported by increased flight activity and a positive order situation. This indicates a promising outlook for the industry moving forward.
Strong Financial Performance
MTU Aero Engines witnessed a significant increase in net profit, rising from €66 million to €122 million. Adjusted net profit also saw growth, reaching €143 million, up from €114 million in the previous year. Furthermore, adjusted earnings before interest and taxes (EBIT), the company’s preferred measure of profitability, rose from €159 million to €193 million, resulting in a margin of 12.5%. Additionally, free cash flow increased to €42 million, compared to €33 million in the same period last year.
Analyst Expectations
Analysts had predicted revenue of €1.53 billion, with an adjusted net profit of €144 million, adjusted EBIT of €194 million, and free cash flow of €45 million, according to a consensus compiled by the company.
Steady Outlook for 2023
Looking ahead, MTU Aero Engines aims to achieve revenue between €6.1 billion and €6.3 billion in 2023. They expect adjusted EBIT to surpass €800 million with a slight year-on-year margin increase. Additionally, the company anticipates free cash flow to be slightly higher than last year’s figure of €326 million.
