Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MTU Aero Engines AG (MTUAF, Financial) achieved an EBIT exceeding EUR1 billion for the first time, one year ahead of schedule.
- The company reported a robust growth in total adjusted revenue, increasing by 18% to approximately EUR7.5 billion.
- MTU Aero Engines AG (MTUAF) secured contract wins totaling USD5.6 billion in the commercial MRO sector, demonstrating strong demand.
- The GTF Advantage program is on track for final FAA certification in H1 2025, with first deliveries expected within the year.
- The company announced a dividend proposal of EUR2.20 per share, a EUR0.20 increase from the previous year, reflecting confidence in future growth.
Negative Points
- Supply chain challenges continue to impact new aircraft deliveries, affecting the overall market environment.
- The GTF fleet management plan will continue to have financial impacts on free cash flow in 2025 and 2026.
- MTU Aero Engines AG (MTUAF) experienced a significant increase in receivables due to delayed payments for GTF shop visits.
- The company is undergoing management changes, with both the CEO and CFO set to leave, which may cause transitional challenges.
- Free cash flow was down 48% to EUR183 million, influenced by payments for the GTF management plan and volatile supply chain issues.
Q & A Highlights
Q: Can you clarify the EUR96 million acquisition payments in the free cash flow statement?
A: We made investments in further business opportunities, which we will disclose in the coming weeks or months, possibly in Q1 2025. These are positive investments into future business opportunities. (Peter Kameritsch, CFO)
Q: Why is there a big jump in receivables on the balance sheet?
A: The increase in receivables is due to a strong Q4, FX impact from the US dollar, and high workload in our MRO shops. Payments for GTF shop visits are delayed, leading to higher receivables. (Peter Kameritsch, CFO)
Q: Can you explain the criteria prioritized in the search for your replacements?
A: The Board prioritized finding an experienced CFO with expertise in financials and IT. Katja Garcia Vila was chosen for her extensive experience, and she will transition into the role by July 1, 2025. (Lars Wagner, CEO)
Q: What are your expectations for cash payments related to the GTF fleet management plan in 2025 and 2026?
A: We expect a similar impact in 2025 as in 2024, with a pretax number of approximately USD390 million. The impact will be significantly lower in 2026. (Peter Kameritsch, CFO)
Q: Can you provide details on the leasing business's contribution to EBIT and cash flow in 2024?
A: The leasing business contributed roughly EUR500 million in revenues and EUR100 million in EBIT in 2024. We plan to grow this business significantly in the coming years. (Peter Kameritsch, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
