(Reuters) -German engine manufacturer MTU Aero Engines reported a 41% rise in second quarter operating profit on Thursday, beating market estimates, driven by strong sales in its spare parts and
MTU Aero Engines Sees 41% Profit Surge Amid Strong Spare Parts Demand
MTU Aero Engines Financial Performance
By Isabel Demetz and Maria Rugamer
Impact of Spare Parts and Maintenance
(Reuters) -German engine manufacturer MTU Aero Engines reported a 41% rise in second quarter operating profit on Thursday, beating market estimates, driven by strong sales in its spare parts and commercial maintenance businesses.
Concerns Over Fighter Jet Project
The Airbus and Boeing supplier said its adjusted earnings before interest and taxes were 357 million euros ($420.22 million) in the quarter, above last year's 252 million euros and a company-provided consensus of 300 million euros.
Future Outlook and Leadership Changes
"A profitable revenue mix in series production with a high proportion of spare and lease engines bolstered earnings, as did high spare parts sales," finance chief Katja Garcia Vila said in a statement.
In June, MTU said delays in aircraft deliveries from Airbus and Boeing had resulted in older engines staying in service longer, benefiting its maintenance, repair and overhaul business.
Fewer aircraft deliveries reflect positively on the German engine manufacturer, as new engine models are loss making.
The Germany-based company had an order backlog of 25 billion euros as of June 30, down 13% compared to December of last year.
However, $1.75 billion in Paris Air Show orders were not yet reflected in the backlog, it said in a statement.
SCAF FIGHTER JET PROJECT CONCERNS
MTU is also delivering engines as part of Europe's next-generation fighter jet project, the Future Combat Air System (SCAF), and aims to deliver an offer for the upcoming phase two by the end of July.
The Franco-German-Spanish programme is facing uncertainty after French warplane maker Dassault Aviation, in a growing spat with Airbus, flagged fresh concerns over the project's leadership and delays.
German Chancellor Friedrich Merz and French President Emmanuel Macron said on Wednesday they expected to have more clarity on the project by the end of August.
However, MTU was not affected by these uncertainties, CEO Lars Wagner said in a call with journalists.
"We have completed all of the client's milestones to date and have been paid accordingly, so we can continue working on our milestones," Wagner said.
He is set to leave MTU next month ahead of his appointment as the CEO of Airbus' commercial aircraft business in January 2026.
($1 = 0.8495 euros)
(Reporting by Isabel Demetz and Maria Rugamer in Gdansk, Alexander Huebner in Munich; Editing by Louise Heavens, Matt Scuffham and Milla Nissi-Prussak)
