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By Thomas Blackwood
July 30, 2026, © Leeham News: Revenue and profits at Germany’s MTU Aero Engines were up in the first half of 2026, driven by a strong order book and new maintenance, repair and overhaul (MRO) contracts.
MTU’s first-half results, published on Thursday, showed adjusted revenue grew to €4.7 billion, up by 13% from €4.1 billion in the first six months of 2025.
Adjusted operating profit stood at €692 million for the period, 5% higher than in the first half of 2025 when it reached €657 million.
However, the adjusted EBIT (earnings before interest and taxes) margin fell slightly, to 14.8% compared with 15.9% in the prior-year period.
No impact from Middle East conflict
Speaking to investors, Johannes Bussmann, MTU’s chief executive, warned of a volatile situation in the Middle East, but said the company’s growth trajectory “remains on track, underpinned by our strong and balanced portfolio of engines.”
MTU produces engines for narrowbody and widebody airframes, with a large section of its market dominated by the Pratt & Whitney geared turbofan (GTF) engine—which powers roughly two-fifths of Airbus A320neo family aircraft operating globally, as well as Airbus A220s and Embraer E-Jets—and the IAE V2500 for the A320ceo family.
Despite its exposure to geopolitical instability, Bussman said: “The conflict in the Middle East has not impacted our figures. Instead, we are experiencing consistently high demand in both the OEM and MRO segments, with no structural changes and zero canceled orders.”
Speaking on Thursday morning, he added: “Despite the current geopolitical uncertainties, our diversified and resilient portfolio enables us to deliver sustainable earnings growth, strong cash generation, and long-term value generation.”
Powder metal related AOGs to be resolved by year-end
MTU’s commercial maintenance division saw the highest percentage revenue increase, with adjusted revenue up 21% from €2.8 billion to €3.4 billion. Geared turbofan MRO accounted for around 46% of commercial maintenance in the first half of 2026, MTU said. GTF engines have faced durability issues linked to a contaminated powdered metal used in the manufacturing process.
But Bussman told investors that MTU’s GTF fleet management plan continues to progress as expected.
GTF’s at a Pratt & Whitney MRO Facility Image: RTX
AOG levels have declined by around 25% year-over-year, he said, and based on the progress achieved, MTU expects powder metal-related AOGs to continue to decline and largely resolve by the end of 2026.
He added: “While much of the attention is naturally focused on the A320neo fleet, it is equally important to look beyond that platform on the A220 and the E-jets. Engine-related groundings are expected to be fully eliminated by the end of the year, marking another important milestone in the recovery process.”
Defense drives growth as commercial slips
Over the year’s first half, revenue in the military business grew by 15% to €298 million, helped by demand for the A400M military transporter’s TP400-D6, the Eurofighter’s EJ200 engine and the Sikorsky’s CH-53K heavy-lift helicopter’s T408.
It was not universally positive. Revenue from MTU’s commercial engine division slipped to €1.1 billion during the first six months of 2026, compared with €1.2 billion a year earlier.
Despite the decline, the company said its commercial series business delivered stable organic growth on a US dollar basis, supported by a favorable product mix, particularly for spare engines.
The aftermarket’s strong performance continued, with spare parts revenue rising at a mid-teens percentage rate, driven by sustained demand for components supporting the V2500 and PW1100G engines.
Guidance for 2026
On the same day that Rolls-Royce announced it was upgrading its guidance for the full year, MTU said it was on course only to meet its annual targets for 2026 and increased its free cash flow guidance.
Chief financial officer Katja Garcia Vila said: “Our free cash flow has risen by 39% to €294 million in the first half of the year, our cash conversion rate of 59% clearly exceeds our expectations for the year as a whole. In light of this, we are now anticipating a cash conversion rate of 50-60% for 2026.”
For the full fiscal year, MTU is targeting adjusted revenue of between €9.2-€9.7 billion, with the commercial division serving as the biggest driver, benefiting from mid-to-high teens organic revenue growth. Adjusted EBIT for the year is forecast to sit around €1.35-1.45 billion.
Order backlog grows
MTU’s order backlog stood at €30.4 billion at the end of June, 3% up year-over-year, amounting to three years of production workload, largely comprised of the GTF engine family and the V2500.
At the Farnborough International Airshow in July, MTU secured orders totaling approximately $500 million. Notably, British Airways opted for the PW1100G-JM to power their A320neo family aircraft., and there were orders for the Embraer E2 family, which are powered by the PW1900G.
Orders taken during the trade show are not yet included in the order backlog.
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