MTU Aero Engines has predicted its revenue to be between €6.4bn and €6.6bn and assumes that it will continue to rise steadily to around €8bn in 2025 in its latest forecast for the 2023 fiscal. Going ahead, MTU anticipates the highest revenue growth from the commercial series business with an organic revenue of 30%.
Reiner Winkler, CEO of MTU Aero Engines, said: “The growth we predict for 2023 should therefore continue in 2024 and 2025 with rising revenue and earnings. Despite the present market challenges, we, therefore, remain on the successful growth track that got underway in 2022 as we predicted last year.”
Chief Financial Officer Peter Kameritsch said: “Adjusted EBIT should increase in the low 20% range in 2023 and continue to rise in the following years. In 2024, earnings should be back above the level registered in 2019, before the crisis, and achieve the one billion thresholds in 2025.”
Chief Program Officer Michael Schreyögg said: “There is likely to be a strong rise in production volumes of engines for the A320neo and regional aircraft as well as for business jets. Production of engines for widebody aircraft should also pick up slowly.”
Chief Operating Officer Lars Wagner added: “Overall, the jet engine fleet with MTU participation should increase by 6.1% a year up to 2030. That opens excellent prospects for us. As we ramp up production, we keep an overview of the entire value chain. We secure the supply of raw materials through long-term contracts and have also introduced a sustainable circular economy. On the supplier side, we focus on long-term relationships, close collaboration, and the validation of several sources.”
MTU further forecasts that the growth will be supported by engines for regional and narrowbody aircraft, particularly, the V2500 for A320s and PW1100G-JM for A320neos. In the commercial maintenance business, MTU expects to report organic revenue growth in the high teens percentage range in 2023.
“We see strong pent-up demand for MRO. In addition, demand is picking up as a result of the recovery in flight hours, especially in the narrowbody and cargo sectors,” added Schreyögg.
“At present, the tailwind is coming from the development of the US dollar/euro exchange rate. By utilizing the scope of our hedging model, we ensure planning stability for MTU. The aim of our conservative financial management is still a leverage ratio of between 0.5- and 1.5-times EBITDA. We want our shareholders to share in MTU’s growth by successively raising our dividend distribution ratio to around 40 percent of adjusted net income,” Kameritsch concluded.
