MTU Aero Engines third-quarter profit beats forecasts, sending shares higher

Investing.com - Shares of MTU Aero Engines were trading slightly higher in mid-morning European dealmaking on Thursday after the German group posted better-than-anticipated third-quarter core income and said it expects to take a lower hit from sweeping U.S. tariffs.

The supplier to planemaking giants like Airbus and Boeing reported adjusted profit before interest and taxes expansion of 24% compared to a year ago to 339 million euros, surpassing company-provided expectations of 292 million euros.

Revenue at the firm’s commercial maintenance and commercial engine divisions rose by 20% over the first nine months of 2025. The increase was partially aided by MTU’s Geared Turbofan (GTF) business, which has been in focus since contaminated powder metal used in parts for the GTF fleet caused some airlines to ground hundres of planes for inspections and repairs last year.

CEO Johannes Bussmann said that, following a recent certification by European Union Aviation Safety Agency, MTU is projecting that it will start final assembly and delivery of its GTF Advantage engines by the middle of next year, Reuters reported.

MTU flagged that it expects to incur a low double-digit million-euro charge from U.S. tariffs in 2025, due largely to efforts overhaul supply chains to avert unnecessary routing through the U.S. MTU had previously said the expense would be in the mid-to-high double-digit million-euros.

CFO Katja Garcia Vila also said full-year adjusted core income will increase in the "mid-twenties percentage," which would be at the upper end of its previous guided range in the low-to-mid twenties.

In a note, analysts at Morgan Stanley including Ross Law and Marie-Ange Riggio said the guidance upgrades were "unsurprising" given MTU’s strong quarterly performance, adding that the targets are "achievable."

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