# MTU Aero Engines AG
**MTU Aero Engines AG** is a German aircraft engine company headquartered in Munich that manufactures precision engine modules as a risk- and revenue-sharing partner in other manufacturers' engine programs and runs an independent maintenance, repair, and overhaul (MRO) business for commercial aero engines. Founded in 1934 and listed on the [Frankfurt Stock Exchange](https://www.edgepedia.org/frankfurt-stock-exchange) under the ticker MTX (US ADR: MTUAY), it employed 13,674 people at the end of 2025.[1](https://www.kerrisdalecap.com/wp-content/uploads/2026/04/MTX-Kerrisdale.pdf) • [2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf)
| Key fact | Detail |
|---|---|
| Profile | Munich-headquartered engine module manufacturer and independent civil aero-engine MRO provider; XETRA: MTX, ADR: MTUAY[1](https://www.kerrisdalecap.com/wp-content/uploads/2026/04/MTX-Kerrisdale.pdf) |
| 2025 revenue | €8,763 million, up 18.3%; commercial maintenance €5,960 million, commercial engine business €2,307 million, military engine business €614 million[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) |
| 2025 earnings | Adjusted EBIT €1,351 million (15.5% margin); adjusted net income €968 million; basic EPS €18.90, up 60.6%[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) |
| GTF exposure | 18% share of the earnings and risks of the Pratt & Whitney Geared Turbofan; the 2023 fleet management plan affects MTU through 2025 and 2026[3](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf) |
| Share performance | +64.9% in 2024 to €322.00; +10.3% in 2025 to €355.30; market capitalization €19,124 million at year-end 2025[3](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf) • [2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) |
| Dividend | €3.60 per share proposed for 2025, up from €2.20 for 2024[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) |
| Employees | 13,674 at year-end 2025 (8,240 engine business, 5,434 commercial maintenance)[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) |
## Business model: partnerships and the aftermarket
Aero-engine original equipment manufacturers (OEMs) face high upfront investment, significant technology and development requirements, and overall program risk, so they bring long-standing strategic partners into contractual Risk and Revenue Sharing Partnerships (RRSPs) that share the costs, risks, and returns of an engine program.[4](https://www.melroseplc.net/media/p23g1rby/melrose-rrsp-booklet-digital.pdf) The booklet identifies [GE Aerospace](https://www.edgepedia.org/ge-aerospace), CFM, IAE, Rolls-Royce, and [Pratt & Whitney](https://www.edgepedia.org/pratt-and-whitney) as engine OEMs, and names MTU among selected partners alongside Melrose, ITP Aero, IHI Group, Kawasaki Heavy Industries Aerospace, and Mitsubishi Heavy Industries Aero Engines.[4](https://www.melroseplc.net/media/p23g1rby/melrose-rrsp-booklet-digital.pdf)
**The GTF partnership.** MTU holds an 18% share of both earnings and risks in Pratt & Whitney's Geared Turbofan (GTF).[3](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf) The same 18% workshare model appears in earlier programs: MTU supplies the high-pressure compressor for the PW6000, its first commercial core engine component responsibility.[5](https://www.mtu.de/about-us/history/)
**The aftermarket.** The other half of the company services engines in service. Kerrisdale Capital, a New York-based investment firm, describes MTU as occupying a distinctive niche in the aerospace supply chain as both a precision engine module manufacturer and a leading independent provider of civil aero-engine maintenance, repair, and overhaul.[1](https://www.kerrisdalecap.com/wp-content/uploads/2026/04/MTX-Kerrisdale.pdf) The revenue split shows how the balance has shifted: in 2025 commercial maintenance generated €5,960 million, more than twice the €2,307 million of commercial engine business, with military engine business at €614 million.[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) The 2025 adjusted EBIT margin of 15.5%, up from 14.0% in 2024, reflects this mix.[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf)
## The GTF powder-metal recall
In 2023 a Pratt & Whitney manufacturing problem, a powder metal material defect, triggered a fleet management plan for the GTF. The issue grounded hundreds of Airbus A320neo aircraft for accelerated inspections and repairs.[6](https://www.reuters.com/business/aerospace-defense/mtu-aero-engines-revenue-narrowly-beats-estimates-strong-maintenance-demand-2026-02-24/) Because MTU carries 18% of the GTF's earnings and risks, it is exposed to the fleet management plan; the company stated it would feel the impact through 2025 and 2026.[3](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf)
The operational side has improved. MTU reported that with optimal parts availability it reduced GTF turnaround time to well under 100 days, leading the partner network in reducing throughput times.[3](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf) The cash-flow side lagged: on February 24, 2026, MTU forecast 2026 sales and earnings broadly in line with market expectations but said the GTF recall was weighing on cash flow, and its shares fell 6% after weaker-than-expected quarterly free cash flow of €99 million ($117 million).[6](https://www.reuters.com/business/aerospace-defense/mtu-aero-engines-revenue-narrowly-beats-estimates-strong-maintenance-demand-2026-02-24/)
## By the numbers
**2024.** MTU posted adjusted EBIT of €1,050 million on revenue of €7.5 billion, with adjusted net income of €764 million and free cash flow of €183 million, reaching its €1 billion adjusted EBIT target a year early.[3](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf) The share price rose 64.9% over the year to close at €322.00, far outperforming the DAX and the Stoxx Europe TMI Aerospace & Defense Index, after an all-time high of €327.60 on December 4, 2024; market capitalization was €17,331 million at year-end (2023: €10,500 million).[3](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf)
**2025.** Revenue rose 18.3% to €8,763 million.[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) Adjusted EBIT rose 28.6% to €1,351 million, adjusted net income rose 26.6% to €968 million, and basic earnings per share rose 60.6% to €18.90.[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) Adjusted free cash flow more than doubled to €378 million, the equity ratio rose to 34.4%, and a dividend of €3.60 per share was proposed.[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf) The share closed 2025 at €355.30, up 10.3%, with a yearly high of €398.70 and market capitalization of €19,124 million.[2](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf)
## History: from Rapp Motorenwerke to the 2005 IPO
The corporate lineage begins with Rapp Motorenwerke, which became [BMW](https://www.edgepedia.org/bmw) in 1917. On December 22, 1934, BMW divested its BMW Flugmotorenbau GmbH, in part an attempt to duck the growing pressure the Nazis exerted on this sector of production.[5](https://www.mtu.de/about-us/history/) At the end of World War II, aircraft engine production at the Allach factory was halted when U.S. troops occupied the plant; it was largely spared dismantling and did not build aircraft engines again until 1955.[5](https://www.mtu.de/about-us/history/)
**Reorganization and listing.** On May 19, 1989, the MTU group was integrated into the newly established Deutsche Aerospace AG (DASA). When EADS was founded in July 2000, MTU became a directly managed DaimlerChrysler affiliate and MTU München was renamed MTU Aero Engines.[5](https://www.mtu.de/about-us/history/) On January 1, 2004, the company became a subsidiary of the private-equity investor [Kohlberg Kravis Roberts](https://www.edgepedia.org/kohlberg-kravis-roberts) (KKR). The stock of MTU Aero Engines Holding AG traded for the first time on June 6, 2005 at an emission price of €21 per share, more than seven times over-subscribed, and the company entered the MDAX on September 19, 2005.[5](https://www.mtu.de/about-us/history/)
## References
1. [MTU Aero Engines — Kerrisdale Capital report](https://www.kerrisdalecap.com/wp-content/uploads/2026/04/MTX-Kerrisdale.pdf)
2. [MTU Aero Engines AG Annual Report 2025](https://www.eqs-news.com/media/document/fb17d109-5f5b-4db4-99b5-947124f0c6c3/assets/DE000A0D9PT0-JA-2025-EQ-E-01.pdf)
3. [MTU Aero Engines AG Annual Report 2024](https://www.mtu.de/fileadmin/DE/5_Investoren/Financial_Report/MTUAeroEnginesAG_AnnualReport_2024_en_locked.pdf)
4. [Risk and Revenue Sharing Partnerships, Melrose RRSP booklet](https://www.melroseplc.net/media/p23g1rby/melrose-rrsp-booklet-digital.pdf)
5. [History, MTU Aero Engines](https://www.mtu.de/about-us/history/)
6. [MTU Aero Engines' muted cash flow hits shares, as costs of GTF recall weigh, Reuters (February 24, 2026)](https://www.reuters.com/business/aerospace-defense/mtu-aero-engines-revenue-narrowly-beats-estimates-strong-maintenance-demand-2026-02-24/)
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*Topic: Encyclopedia › Society and history › Economics and business › Business and work › Companies and commercial industries*
*Initially written Oct 10, 2026 · Edited: Oct 11, 2026; Oct 15, 2026; Oct 21, 2026*
*Copyright 2026 EdgeChat AI, a subsidiary of Biostate AI.*
License: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license