MTU Aero Engines AG

For H1 2026, MTU reported group revenue of roughly EUR 4.7 billion, up 13% year over year, adjusted EBIT of EUR 692 million, up 5%, and an adjusted EBIT margin of 14.8%. Adjusted net income was EUR 502 million, free cash flow was EUR 294 million, up 39%, and cash conversion was 59%. In Q2 2026, commercial MRO revenue rose 37% to EUR 1.5 billion, adjusted EBIT rose 20% to EUR 139 million with an 8% margin, and OEM adjusted EBIT was EUR 233 million with a 32% margin. Management reaffirmed the 2026 revenue and adjusted EBIT guidance, and raised full-year cash conversion guidance to 50% to 60% from 45% to 55%.

Johannes Bussmann framed the first half as an “excellent performance” and repeatedly emphasized resilience despite Middle East volatility. He highlighted the company’s diversified portfolio, the large and growing aftermarket base, and the view that demand continues to outpace aircraft deliveries. He was upbeat on the GTF recovery, the V2500, widebody programs, and the company’s role in future European military aviation and hydrogen propulsion, while stressing that no material business disruption has been seen.

Katja Garcia Vila focused on the financial quality of the half, citing H1 revenue of nearly EUR 4.7 billion, adjusted EBIT of EUR 692 million, adjusted net income of EUR 502 million, and free cash flow of EUR 294 million. She said cash conversion at 59% exceeded the initial full-year plan and therefore lifted full-year guidance to 50% to 60%. She also noted H1 GTF AOG compensation of about USD 110 million, Q2 free cash flow of EUR 117 million, and that cash flow was helped by strong operations but weighed by capacity investments, the Aero Design Works acquisition, and working-capital increases.

Analysts focused on the next European fighter, GTF AOG trends, cash conversion beyond 2030, shareholder returns, V2500 cycles, OEM pricing/mix, and M&A. Management said FCAS funding is in place until end-September but the timing and industrial setup are still under discussion and remain a customer/political decision. On capital returns, Katja said MTU plans to reinstall its dividend policy during the guidance period and that GTF AOG compensation payments will end by year-end, though prefinance shop-visit receivables will still matter. They also said the V2500 remains strong, GTF AOGs are trending down, and there were no changes in 2027 booking patterns or major portfolio churn.