By Mauro Orru
MTU Aero Engines has affirmed its adjusted guidance for the year, following an announcement by Pratt & Whitney parent company RTX that it would be recalling hundreds of jet engines for inspection. The recall is due to concerns over potential contamination in certain engine parts, which could lead to cracking.
RTX, formerly known as Raytheon Technologies, revealed on Monday that it plans to inspect approximately 600 to 700 Pratt engines over the next three years. MTU supplies crucial components for Pratt’s geared-turbofan engines, which are utilized in aircraft such as Airbus’s A320neo.
In light of the jet engine recall, MTU stated earlier this week that it anticipates a revenue loss of around EUR1 billion, as well as a decline in reported earnings before interest and taxes (EBIT).
During a conference call on Wednesday, executives from the German aircraft-engine manufacturer affirmed that the group is still aiming for revenue between EUR6.1 billion and EUR6.3 billion this year, with the forecast subject to potential adjustments. Additionally, adjusted earnings before interest and taxes (EBIT) are expected to exceed EUR800 million.
Although acknowledging the financial implications brought about by the geared turbofan inspection program, Chief Executive Lars Wagner emphasized that these burdens are not likely to impact the adjusted guidance figures.
Furthermore, MTU confirmed its 2025 outlook, projecting a gradual increase in revenue to approximately EUR8 billion and adjusted EBIT of roughly EUR1 billion.
Wagner stated, “We are actively working to minimize the impact of the inspection program on our customers.”