MTU Aero Engines has recently raised its forecast for the fiscal year 2025, sending a positive signal to the markets. This update provides an overview of the company’s optimistic prospects and the existing challenges.
Revenue Forecast 2025
MTU Aero Engines now expects revenue between 8.6 and 8.8 billion euros, an increase from the previous forecast of 8.3 to 8.5 billion euros. This increase is attributed to improved organic growth in the spare parts business and in civil maintenance, as well as a favorable revenue mix in civil new business.
Profit Forecast 2025
The adjusted EBIT is expected to rise in the low to mid-twenties percentage range. This represents a significant improvement over the previous forecast, which only anticipated an increase in the mid-teens percentage range.
Currency Risks
Despite the positive forecasts, there are concerns regarding currency risks. The weak US dollar is a major concern, as the revenue forecast was already lowered in April due to unfavorable exchange rate predictions from 8.7 to 8.9 billion euros to 8.3 to 8.5 billion euros. In the current forecast, the assumed average dollar exchange rate remains unchanged, indicating that MTU expects a stable exchange rate.
Long-Term Outlook
MTU Aero Engines has set a goal to achieve revenue of over 13 billion euros by 2030. This long-term perspective underscores the company’s confidence in its strategic direction and demand in both the civil and military sectors.
Overall, the raised forecast reflects MTU Aero Engines’ confidence in its business strategy. Nevertheless, currency risks remain an important issue for investors in the current market phase.