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Investing.com -- MTU Aero Engines (ETR:MTXGn) posted a stronger-than-expected second quarter, with operating profit climbing 41% to €357 million, beating the company-compiled consensus of €300 million.
Still, the company’s shares fell more than 3% following the release.
The solid performance was driven by robust sales in spare parts and commercial maintenance, helping lift the EBIT margin by 310 basis points year-over-year to 17.4%. That marked a 19% beat on adjusted EBIT compared to expectations.
“A profitable revenue mix in series production with a high proportion of spare and lease engines bolstered earnings, as did high spare parts sales,” said CFO Katja Garcia Vila.
Free cash flow came in at €62 million, matching forecasts. The only notable downside in the release was an uptick in net debt, which rose to €1.15 billion from €1.06 billion at the end of 2024.
The company reported an order backlog of €25 billion as of June 30, reflecting a 13% drop from year-end levels. However, this figure does not yet include approximately $1.75 billion in orders secured during the Paris Air Show.
MTU confirmed its full-year (FY25) guidance, in line with expectations following the upward revision announced at the Air Show.
Commenting on the report, Jefferies analyst Chloe Lemarie said the 19% EBIT beat "provides upward pressure to the raised 2025 guide."
"The recently raised guidance is confirmed, but we see the strength of Q2 results allaying any remaining concerns on FX headwinds to FY25," she noted.