MTU Aero Engines (MTX) CMD 2025 summary

Management and Strategic Focus

• Leadership transition underway, with new CFO and CEO onboarding and succession to be finalized soon.

• Emphasis on integrating new management before setting midterm guidance and maintaining a commitment to safety, responsibility, and sustainability.

• Strategic focus on growth, operational excellence, and innovation, supported by technological and portfolio advancements.

• Launch of the UPLIFT transformation program to standardize, optimize, and digitalize processes for scalable growth and international expansion.

• Profitable aftermarket business expected to outpace series production by 2030, boosting OEM margins.

Market Environment and Business Drivers

• Commercial aircraft in service projected to grow from 28,000 to 51,000 over 20 years, with narrow-body leading at 3.5% CAGR.

• Robust demand and slower aircraft retirements benefit aftermarket and MRO business, with double-digit growth anticipated in new engine deliveries.

• Defense segment sees renewed momentum, especially for Eurofighter and new programs like FCAS, NGFE, and ENGRT.

• Military and commercial OE revenues to grow mid to high single digits annually through 2030; aftermarket up high single to low teens.

• MTU's engine fleet is projected to outpace global fleet growth, driven by strong commercial and military demand.

Technology, Sustainability, and Innovation

• GTF Advantage certified and set for service entry end of 2025/early 2026, offering improved thrust and durability.

• Flying Fuel Cell demonstrator under development, targeting multi-megawatt demonstration and flight proof of concept by 2030.

• Sustainability targets raised: aiming for 60% CO2 reduction by 2034/35 (Scope 1 & 2), with Scope 3 baseline in progress.

• Supporting development and use of sustainable aviation fuels and hydrogen technologies.

• Investments in automation, operational footprint optimization, and cost management to support future growth and efficiency.