MTU Aero Engines hikes 2025 outlook on stronger US dollar after sales beat (updated)

MTU Aero Engines AG

19/02/2025 07:58

(Adds details on outlook in paragraphs 2, 4, 5 and 7, 2024
revenue in paragraph 6)
       Feb 19 (Reuters) - German engine manufacturer MTU Aero
Engines  MTXGn.DE  on Wednesday raised its guidance for 2025
based on a lower assumed exchange rate of the euro versus the
U.S. dollar, as it topped market expectations for 2024 revenue.
    Stronger U.S. dollar benefits the Airbus  AIR.PA  and Boeing
 BA.N  supplier as it books most of its orders in dollars.
    MTU, which also makes the engine for the Eurofighter
Typhoon, forecast revenue of between 8.7 billion and 8.9 billion
euros ($9.10 billion and $9.31 billion) for 2025, up from a
previous range of 8.3 billion to 8.5 billion euros.
    It also expects its adjusted operating profit to grow in a
mid-teens percentage range, compared with the earlier range of
low to mid-teens.
    The company said the outlook was now based on an exchange
rate of 1.05 euros to 1 dollar, instead of the previously
assumed rate of 1.10.
    MTU reported an 18% rise in its annual adjusted revenue to
7.5 billion euros in 2024, beating analysts' average forecast of
7.4 billion euros in a company-provided consensus.
    It said all business areas should contribute to further
revenue growth in 2025.
($1 = 0.9564 euros)

 (Reporting by Isabel Demetz in Gdansk and Alexander Huebner in
Munich; Editing by Milla Nissi)
 ((Isabel.Demetz@thomsonreuters.com;))