Leeham News and Analysis
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MTU powers ahead with strong growth amid clarity on tariff impact
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.
I know I am behind the curve but just saw Robinson was doing a model R88.
They went with a Safran Aerialle engine vs the RR/Allison of the R66. Both are older and solid designs. Robinson is for sure not taking risks.
New to me they opened a plant in Texas. Most interesting.
The R88 Robinson has 1000shp Arriel Safran engine which is much higher power than the RR250/300 series offers in the 5 seat R66
MTU has previously built the RR250 type under license but have their own joint engine- with Safran and RR- MTR390 for a military helicopter
Its a real jump, just surprised it was not RR but also not that familiar with the small turbo shaft market. Do they not have one in that class?
RR is complex in that regard, I know they got Allison some time back and some of the product is still based on those older designs. RR300 (now). I did some Helicopter insert surveying back in 1980 that used the Allison 250 engine. Impressive performance for a helicopter that size and engine that small.
That is a lot of hp in a light engine in the Arriel. Our Coast Guard dropped the 250 and went with the Arriel. Pretty drastic move for what I thought was a well regarded engine though maybe pushed past reliable in that application.
RA66 has done really well with it, impressive little chopper in its own right.
The RH88 is a move into the bigger leagues.
My brother is a lot more familiar as he did Helicopter Avionics and some of the European TS engines were highly regarded.
There are much higher HP/kW RR turboshafts such as the LHTEC CTS800 a JV with Honeywell which is 1300-1600 shp (usually as a twin).
its a jump from the 300shp of the Rolls-Allison RR300.
Civilian market engines tend to avoid the expensive but good power/weight of the military ones.
The Aerial (600-1000shp) is the market leader for a long time.
Some good stuff in this. Great Video of the Kodiak Island one way landing (pretty sure, there is a mountain at the end of the runway inland)
https://onemileatatime.com/news/alaska-boeing-737-hits-deer-landing-kodiak/
Another really serious lapse. With no go around they have no choice but to carry on and slow as much as possible before impact.
Runway was extended seaward for jets, it used to be Turbo Props only. Still should be but is not. I don’t know its next stop but its not an E175, MAX-8 in this case.
I don’t know if this is separate statements as the guy quoted was FAA not NTSB.
They are also treating it as settled as to who was whom in the cockpit conversations.
https://www.wionews.com/india-news/air-india-plane-crash-us-aviation-body-denies-fuel-control-unit-mechanical-issue-in-boeing-plane-1753438291334
I don’t know that is confirmed, so far its been leaks as far as I know. It tracks but not part of an official report.
The key word is ‘inadvertent’
That leaves only ‘deliberate’ as the remaining mechanical option.
Its reported that a lawyer/ambulance chaser and former DOT Inspector general (1990s) says there was an ANA 787-8 coming into land at Kansai ( Osaka) 2019 when there was both engines fuel supply cutoff.
https://jtsb.mlit.go.jp/airrep.html#2019
This is a fantasy as the JTSB aviation report database has no such event.
So many liars and fabricators around.
Google search even calls this lawyer an ‘aviation expert’
Check the DB to see the 4 787 serious incidents dont include such an incident
When Things go Wrong: Classic case of the programing works for most things but then it undermines one other aspect.
https://archive.ph/UvK3m
And in other cases its saved the day. Serious conundrum.
Your links are compromised – says my security , again