MTU Aero Engines reported Q4 adjusted revenue of €2.44 billion, surpassing consensus estimates, driven by increased demand for engine maintenance due to issues with Pratt & Whitney's GTF engines.
The company forecasts 2026 revenue and profit to be in line with or slightly above market expectations. However, the ongoing GTF engine recall, for which MTU is responsible for 18% of the costs, is negatively impacting cash flow, causing its shares to decline.
Despite the recall's financial strain and pressure on margins, MTU anticipates the fleet management plan to be completed by year-end. The company's 2026 revenue guidance is between 9.2 and 9.7 billion euros, with adjusted operating profit projected at 1.35 to 1.45 billion euros.
Free cash flow guidance, however, is slightly below consensus.
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