February 24th, 2026

The call presented a strongly positive operational and financial performance for 2025—record revenue, margin expansion, all-time high free cash flow, major capacity and technology milestones, and an ambitious 2026 guidance—while acknowledging tangible near-term headwinds from the GTF fleet management cash burden, ramp-up inventory impacts (notably Fort Worth), supply-chain delays and ongoing customer/partner delivery negotiations. Overall, the company is investing for long-term profitable growth with a solid balance sheet, but some execution and cash-timing risks remain in the short term.

Company Guidance

MTU guided 2026 group revenues of EUR 9.2–9.7 billion (assumes USD/EUR 1.20) and adjusted EBIT of EUR 1.35–1.45 billion (consistent with its 2030 margin corridor of 14.5%–15.5%), with adjusted net income expected to grow broadly in line with EBIT; cash conversion is forecast to improve to 45%–55% (up from 39% in 2025, when free cash flow was EUR 378 million). Management expects organic U.S. dollar OE revenues to rise in the mid‑ to high‑teens, organic commercial spare‑parts growth in the low‑ to mid‑teens, MRO U.S. dollar growth in the low‑ to mid‑teens, and military revenue growth in the mid‑teens, with GTF MRO representing 40%–45% of MRO revenues. The company has hedged around 80% of its 2026 net USD exposure at an average rate of 1.13 (a EUR 0.05 USD move ≈ EUR 20 million EBIT), reports net debt of ~EUR 1.1 billion (net debt/EBITDA <1, target leverage 0.5–1.5), will propose a EUR 3.60 dividend per share (+64% y/y; 20% payout ratio toward a 40% target), and notes headwinds to 2026 free cash flow from remaining GTF compensation and a high‑double‑digit working‑capital build for the Fort Worth ramp‑up; order book stands at EUR 29.5 billion (≈3 years sold out).