Q3 2025 MTU Aero Engines AG Earnings Call Transcript
Key Points
- Group revenues increased by 19%, reaching nearly EUR6.3 billion, aligning with the full-year 2025 target.
- Adjusted EBIT rose by 34% to EUR995 million, resulting in a strong EBIT margin of 15.9%.
- Free cash flow came in at EUR279 million, representing a better-than-expected cash conversion rate of 39%.
- MTU Aero Engines AG (MTUAF) upgraded its EBIT and free cash flow guidance based on strong nine-month performance.
- The company is well-positioned to capture growth opportunities across both commercial and military segments, supported by a diversified portfolio and strong customer relationships.
- The supply chain continues to recover but remains below pre-COVID stability, slowing production ramp-up.
- The weaker US dollar-euro exchange rate poses a challenge, particularly for European aerospace and defense companies.
- Military revenues declined by 2% due to delayed deliveries in new engines and back-end loaded repair activities.
- The GTF fleet management program continues to present headwinds, impacting free cash flow generation.
- Tariff costs remain a concern, with ongoing efforts to mitigate their impact through internal process adaptations and contractual agreements.
Welcome to the conference call on MTU Aero Engines AG Q3 2025 results. For your information, the management presentation, including the Q&A session, will be audio taped and streamed live or made available on demand on the Internet.
By attending in the conference call, you grant permission for audio recordings intended for publication on the Internet to be taken. The speakers of today's conference call are Mr. Johannes Bussmann, Chief Executive Officer; and Mrs. Katja Garcia Villa, Chief Financial Officer. Firstly, I will hand over to Mr. Thomas Franz, Vice President, Investor Relations, for some introductory words.
Thank you, Sarah. Good morning, and welcome to MTU's nine months 2025 results call. We'll begin today's session with our new CEO, Dr. Johannes Bussmann, who would like to introduce himself and share his first impressions. Following that, Katja will highlight the most important developments of the quarter and walk you through the financials, providing a detailed
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