- Adjusted Ebit: €252 million, up 31% year-over-year (y/y), beating the estimate of €221.7 million.
- OEM Business Adjusted Ebit: €157 million, beating the estimate of €128.2 million.
- Commercial Maintenance Adjusted Ebit: €95 million, slightly beating the estimate of €94.3 million.
- Adjusted Ebit Margin: 14.4%, higher than the estimate of 12.6%.
- OEM Business Adjusted Ebit Margin: 25.5%, exceeding the estimate of 22.4%.
- Commercial Maintenance Adjusted Ebit Margin: 8.1%, topping the estimate of 7.72%.
- Adjusted Net Income: €185 million, up 29% y/y, surpassing the estimate of €162.2 million.
- Revenue: €1.74 billion, up 12% y/y, slightly below the estimate of €1.79 billion.
- OEM Business Revenue: €618 million, beating the estimate of €572.9 million.
- Commercial Engine Revenue: €470 million, ahead of the estimate of €439.7 million.
- Military Engine Revenue: €148 million, surpassing the estimate of €133.2 million.
- Commercial Maintenance Revenue: €1.16 billion, slightly below the estimate of €1.22 billion.
- Free Cash Flow: €90 million, significantly higher than last year’s €42 million and the estimate of €19.2 million.
- EPS (Earnings Per Share): €2.96, up from €2.28 y/y, and beating the estimate of €2.79.
Year Forecast
- Adjusted Ebit Margin: Expected to be 13%, previously forecasted above 12%, higher than the estimate of 12.4%.
- Revenue: Still expected to be between €7.3 billion and €7.5 billion, in line with the estimate of €7.35 billion.
Comments
- All business areas are expected to contribute to revenue growth in 2024.
- The commercial series business is expected to have the highest increase, with organic revenue growth in the low-to-mid twenties percentage range.
- The spare parts business is expected to see organic revenue growth in the low teens percentage range.
- Organic growth in revenue from commercial maintenance is anticipated to be in the mid-to-high teens percentage range, with Geared Turbofan MRO accounting for around 35%.
- The military business is expected to grow revenue in the low-to-mid teens percentage range.
- The adjusted EBIT margin is anticipated to be 13% in 2024.
- Adjusted net income is expected to grow in line with adjusted EBIT.
- Free cash flow is anticipated to be in the low triple-digit million euro range in 2024, based on a US dollar/euro exchange rate of 1.10.
More
- There are 13 buys, 10 holds, and 3 sells from analysts.
A look at Mtu Aero Engines Ag Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing the Smartkarma Smart Scores have assigned Mtu Aero Engines Ag with varying scores across different factors. The company showcases strong momentum with a score of 5, indicating a positive trend in performance. In terms of resilience, Mtu Aero Engines Ag receives a score of 3, suggesting a solid ability to adapt and withstand challenges. However, the company receives lower scores in areas such as value, dividend, and growth, with each scoring a 2.
Despite facing challenges in certain areas like value and dividend, Mtu Aero Engines Ag stands out with its exceptional momentum score. The company, known for developing and manufacturing engines while providing commercial engine services globally, has positioned itself as a resilient player in the industry. With a diverse clientele of engine manufacturers and operators worldwide, Mtu Aero Engines Ag continues to navigate the market with a balanced outlook across different Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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