By Tom Batchelor

Jul 24, 2025, © Leeham News: German engine manufacturer MTU has posted a 40% rise in operating profit for the first half of 2025 amid what outgoing CEO Lars Wagner called “robust growth” across both commercial OEM and MRO segments.

Adjusted EBIT rose by 40% to €657 million ($773 million) in H1 2025, compared with €470 million in the first half of 2024, with adjusted revenue of €4.1 billion, an increase of 21%, versus €3.4 billion in the first half of 2024.

Wagner said it was an “exceptionally strong” performance for the first six months of the year.

For the second quarter, MTU posted an adjusted EBIT of €357 million euros, higher than Q2 2024’s €252 million and comfortably beating analysts’ consensus estimate of €300m.

Adjusted revenue stood at €2 billion, up from €1.8 billion in Q2 2025.

MTU sticks with raised guidance

The company raised its revenue and earnings guidance in mid-June during the Paris Air Show, and MTU said on Thursday that it stuck by this new, more positive market assessment.

MTU said revenue in the 2025 financial year was expected to be between €8.6 and €8.8 billion, with adjusted EBIT set to increase in the low to mid-twenties percentage range, and free cash flow of between €300 and €350 million.

MTU had previously predicted revenue of €8.3 to €8.5 billion, an increase in adjusted EBIT in the mid-teens percentage range, and free cash flow of between €250 and €300 million.

“These results once again highlight the strength and resilience of our core business, performance that fully supports the upgrade to our 2025 guidance,” Wagner – who becomes CEO of Airbus Commercial Aircraft on Jan. 1 – told investors on the Jul. 24 earnings call.

By 2030, he said MTU expected revenues to reach between €13-14 billion.

Financial highlights for MTU’s H1 2025. Credit: MTU

Supply chain and tariffs

On the supply chain, Wagner told analysts the situation was “improving”: “What we have seen over the last couple of weeks and months is shortages of small parts, mainly due to the fire at the SPS facility in the US. In generic terms the supply chain runs well.”

The fire at SPS Technologies facility in Pennsylvania in February, where aerospace fasteners and other components for commercial and defense aircraft and engines are manufactured, hit a broad spectrum of the supply chain, including Boeing, Airbus and their suppliers.

His remarks on the recovering supply chain were broadly in line with comments he made in October on the topic, when he said: “Am I happy? Not yet, but some of the parts have recovered earlier than expected. I see a good trend here.”

Asked about the impact of tariffs on Thursday, CFO Katja Garcia Vila said: “So far we only have a very low impact for us. Looking at the full year, we do expect a net impact of a high single or low double digit impact on our EBIT.”

Powering increased revenue

MTU’s commercial engine business saw the highest revenue increase in the first six months of the year, with revenue up 27% from €903 million to €1.151 billion.

The PW1100G-JM, which powers the Airbus A320neo family, was the biggest revenue generator.

The V2500 for the classic A320 family and the CF6-80, GEnx and GE90 widebody engines were also strong contributors.

On the MRO side, MTU said the key revenue drivers were the PW1100G-JM and the V2500.

For example, geared turbofan MRO activity accounted for around 35% of commercial maintenance.

However, within the military business, revenue reached €260 million in H1 2025, compared with €272 million in the same period of the previous year.

Asked about the decline in sales, Garcia Vila said it was “just a seasonality topic so we don’t expect that to be a continuous issue for the second half of the year.”

MTU’s order backlog also fell to €25 billion at the end of the first six months, versus €28.7 billion at the end of 2024.

The company stressed that orders from the Paris Air Show – amounting to $1.75 billion – were not yet included in the order backlog.