MTU Aero Engines expects growth “in all business areas” next year, when it is forecasting a double-digit increase in pre-tax annual profit.
The engine maintenance and manufacturing provider is confident that it will meet its upgraded forecast for this year, of earnings before interest and taxation of more than €1 billion ($1.1 billion)--a record for the German company.
Revenue this year is likely to between €7.3-7.5 billion, while next year MTU forecasts €8.3-8.5 billion.
Organic growth in revenue from commercial maintenance should be in the low-to-mid teens percentage range in 2025, with Pratt & Whitney geared turbofan (GTF) MRO accounting for around 40%.
Organic revenue growth in the spare parts business, meanwhile, will likely be in the low teens percentage range in 2025.
“As planned, free cash flow will continue to be affected by the Geared Turbofan fleet management plan next year,” commented Peter Kameritsch, CFO of MTU Aero Engines.
MTU’s share in the GTF engine family is as much as 18%, depending on the application. In addition to being responsible for the high-speed low-pressure turbine and the first four stages of the high-pressure compressor, MTU also manufactures brush seals and nickel blisks for high-pressure compressor components that fall outside its design responsibility.
Moreover, MTU in Munich is responsible for the final assembly of one-third of the production PW1100G-JM for the A320neo.
It also has a 16% share in the GTF’s predecessor, the IAE V2500, and is responsible for the entire low-pressure turbine and numerous accessories. It also is a major maintenance provider for the engine.
According to Aviation Week Network’s Commercial Fleet & MRO Forecast 2025, V2500 maintenance in Europe will be worth $1.1 billion next year, rising to a peak of $1.5 billion in 2029.
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