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MTU Aero Engines Posts Record 2025 Revenue Despite Challenges

MTU Aero Engines achieved record €8.7B revenue and €1.35B EBIT in 2025 amid supply chain and military program challenges.

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This article is based on an official press release from MTU Aero Engines and includes additional market data context.

MTU Aero Engines Reports Record 2025 Revenue Amid Supply Chain and Military Headwinds

MTU Aero Engines has concluded its 2025 fiscal year with the strongest financial performance in the company’s history, posting record revenue and earnings despite persistent supply chain constraints and costly fleet management programs. According to the company’s official figures released on February 24, 2026, adjusted revenue climbed 16% to €8.7 billion, while adjusted EBIT rose 29% to €1.35 billion.

However, the record-breaking annual figures were met with a cool reception from investors. Market data indicates that shares dipped approximately 5-6% following the announcement, driven by a fourth-quarter earnings miss and growing uncertainty surrounding the company’s military portfolio. While the commercial sector is booming, the costs associated with the Geared Turbofan (GTF) engine inspection program and stalled defense projects continue to weigh on the German engine manufacturer.

CEO Dr. Johannes Bussmann emphasized the company’s resilience in a statement accompanying the release:

“We made the most of market opportunities in 2025 and stayed on our successful course despite ongoing challenges… In 2026, we will channel our Passion for Engines into achieving further growth.”

Financial Performance Overview

The fiscal year 2025 saw MTU Aero Engines achieve new highs across nearly all key performance indicators. The company’s adjusted EBIT margin expanded from 14.0% in 2024 to 15.5% in 2025, signaling improved profitability despite inflationary pressures and supply chain disruptions.

Key Metrics vs. 2024

  • Revenue (Adjusted): €8.7 billion (up from €7.5 billion)
  • EBIT (Adjusted): €1.35 billion (up from €1.1 billion)
  • Net Income (Adjusted): €968 million (up 27%)
  • Free Cash Flow: €378 million (up 106%)
  • Dividend Proposal: €3.60 per share (up from €2.20)

The company’s order backlog also grew slightly to €29.5 billion, theoretically securing more than three years of production work. Based on these results, the Executive Board has proposed a dividend increase of 64%, targeting a payout ratio of approximately 20%, with a long-term goal of returning to 40%.

Commercial Aviation: The GTF Challenge

The commercial maintenance, repair, and overhaul (MRO) sector remains a primary revenue driver, but it is heavily impacted by the ongoing “Fleet Management Plan” for the Pratt & Whitney Geared Turbofan (GTF). This program involves the recall and inspection of engines due to a rare powder metal defect in high-pressure turbine and compressor discs.

According to MTU’s report, the financial burden of this program remains significant. In 2025, MTU paid out approximately €360 million in compensation to airlines. The company projects this figure will decrease to roughly €250 million in 2026 as turnaround times improve.

Dr. Bussmann noted that fewer than 400 aircraft are currently grounded due to these inspections, although external industry estimates suggest the number could be higher. The situation has created reported friction within the supply chain, as airframers like Airbus demand engines for new deliveries while engine partners prioritize spares to keep existing fleets operational.

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Military Business Stalls Amid Political Uncertainty

While the commercial side of the business grew, MTU’s military sector faced stagnation. Revenue for the military business was effectively flat at €614 million, compared to €612 million in 2024. The company attributed this lack of growth to supply chain issues that delayed the delivery of parts and modules.

The FCAS Question Mark

Beyond immediate supply chain delays, the long-term outlook for the military division is clouded by political disputes regarding the Future Combat Air System (FCAS). This next-generation fighter project, a collaboration between France, Germany, and Spain, is reportedly facing severe delays.

Recent reports indicate that disputes over workshare and design leadership between Dassault and Airbus have stalled progress. While MTU management publicly expressed confidence that partner nations would find a solution, the uncertainty poses a risk to long-term defense revenue projections. Conversely, the Eurofighter (EJ200) and CH-53K heavy-lift helicopter programs provided stability, securing strong orders despite the broader headwinds.

2026 Outlook and Guidance

Looking ahead, MTU Aero Engines forecasts continued growth for fiscal year 2026, contingent on supply chain stabilization and a reduction in GTF-related costs. The company has issued the following guidance:

  • Revenue: €9.2 billion – €9.7 billion
  • Adjusted EBIT: €1.35 billion – €1.45 billion
  • Cash Conversion Rate: 45% – 55% (targeting an improvement from 39% in 2025)

The company reaffirmed its strategic ambition to reach revenue levels of €13–14 billion by 2030.

AirPro News Analysis

MTU’s 2025 results highlight a paradox currently gripping the aerospace supply chain. On paper, the company is in a “super-cycle” of demand; airlines are flying older aircraft longer due to delivery delays, driving unprecedented demand for MRO services. However, the same supply chain fractures causing the aircraft shortage are preventing suppliers like MTU from fully capitalizing on it.

The market’s negative reaction, despite record top-line numbers, suggests that investors are looking past the revenue growth and focusing on the “quality” of earnings. The Q4 earnings miss (EPS €4.58 vs. the forecast €4.88) indicates that operational costs are biting harder than anticipated. Furthermore, the uncertainty surrounding FCAS is not merely a political footnote; for a company like MTU, which relies on military contracts for long-term R&D stability, the potential collapse of a next-gen fighter program would be a significant strategic blow.

While the dividend increase signals management’s confidence in cash flow recovery, the immediate future will likely be defined by how quickly MTU can resolve the GTF powder metal issues and navigate the fragile geopolitical landscape of European defense procurement.


Sources: MTU Aero Engines Press Release

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Photo Credit: MTU Aero Engines

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Hartzell Propeller Opens Innovation Center with JobsOhio Grant

Hartzell Propeller launches a 150,000 sq ft Innovation Center in Ohio with $2M JobsOhio grant, focusing on carbon fiber and Advanced Air Mobility R&D.

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This article is based on an official press release from Hartzell Propeller.

Hartzell Propeller Opens Innovation Center with $2M JobsOhio Grant

Hartzell Propeller has formally opened its new Innovation Center in Piqua, Ohio, supported by a $2 million grant from JobsOhio. The facility represents a significant expansion of the company’s headquarters and is designed to accelerate research and development in advanced manufacturing and aviation technology.

According to the company, the new center will serve as a hub for carbon fiber composite manufacturing and the development of next-generation propulsion systems, including those for the Advanced Air Mobility (AAM) sector. The opening ceremony, held on February 20, 2026, highlighted the company’s ongoing collaboration with state economic development programs to secure Ohio’s position in the aerospace industry.

Investment and Facility Expansion

The $2 million award was provided through the JobsOhio Research & Development Center Grant Program, an initiative aimed at fostering corporate R&D within the state. In its press release, Hartzell Propeller stated that the grant complements its own substantial capital commitment. The company has already invested $30 million in the facility and equipment, with plans to invest an additional $10 million over the next five years.

The Innovation Center is located at 1900 Covington Avenue, adjacent to Hartzell’s existing main facilities. The expansion adds more than 150,000 square feet to the company’s operational footprint. JJ Frigge, President of Hartzell Propeller, emphasized the scale of this upgrade in a statement:

“Purpose-built to support the next chapter of advanced propeller innovation, this facility more than quadruples our carbon fiber production footprint and reinforces our ‘Built on Honor’ commitment to quality, performance, and support.”

Consolidating Operations

The new building will house several critical functions under one roof. According to Hartzell, these include:

  • All carbon fiber propeller blade production.
  • Manufacturing for WhirlWind Propellers (a brand associated with experimental and airboat markets).
  • The Hartzell Service Center.
  • Dedicated Research and Development operations.

Focus on Advanced Air Mobility

A primary driver for the new center is the emerging Advanced Air Mobility (AAM) market. Hartzell Propeller noted that the facility will enable critical R&D for electric propulsion, citing its ongoing collaboration with Beta Technologies. In July 2025, Hartzell received FAA Part 35 Type Certification for a propeller designed specifically for electric aircraft, a milestone achieved through its work with Beta.

Ohio Governor Mike DeWine attended the opening, framing the investment as a continuation of the state’s aviation legacy.

“The newest investment establishing Hartzell’s Innovation Center demonstrates how legacy suppliers are leading the charge in next-generation aviation and supporting Ohio’s position as a leader in aerospace innovation and advanced air mobility,” DeWine said.

JobsOhio President and CEO J.P. Nauseef added that the decision to build in Piqua aligns with the state’s broader strategy, noting that Ohio has invested more than $1.2 billion in advanced aerospace manufacturing and infrastructure over the last five years.

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AirPro News analysis

The establishment of the Hartzell Propeller Innovation Center signals a strategic pivot for the legacy manufacturer. By consolidating carbon fiber production and R&D in a dedicated 150,000-square-foot facility, Hartzell is effectively separating its advanced composite operations from traditional metal manufacturing. This distinction is crucial as the industry shifts toward electric and hybrid-electric propulsion, where weight savings and aerodynamic efficiency, primary benefits of carbon fiber, are paramount.

Furthermore, the involvement of JobsOhio highlights the competitive nature of the AAM supply chain. State governments are increasingly willing to subsidize R&D infrastructure to ensure that established aerospace hubs, like Ohio, retain their relevance as the market transitions away from conventional combustion engines. For Hartzell, the grant likely serves as both financial support and a validation of its long-term bet on the electric aviation sector.

Frequently Asked Questions

What is the value of the grant awarded to Hartzell Propeller?
JobsOhio awarded Hartzell Propeller a $2 million grant through its Research & Development Center Grant Program.

Where is the new Innovation Center located?
The center is located at 1900 Covington Avenue in Piqua, Ohio, adjacent to the company’s main headquarters.

What activities will take place at the new facility?
The center will house all carbon fiber blade production, WhirlWind Propellers manufacturing, the Hartzell Service Center, and R&D operations focused on Advanced Air Mobility.

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Photo Credit: Hartzell Propeller

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GE Aerospace Expands Manufacturing and Supply Chain in India

GE Aerospace invests $44 million in Pune facility and partners with 2,200+ suppliers to build a global aerospace supply chain hub in India.

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This article is based on an official press release from GE Aerospace and additional industry data.

GE Aerospace Accelerates India Strategy: Building a Global Supply Chain Hub

GE Aerospace is aggressively expanding its manufacturing footprint in India, signaling a strategic shift that positions the nation not merely as a consumer market but as a critical node in the global aerospace supply chain. According to an official company release, the engine manufacturer has cultivated a network of over 2,200 suppliers in the region, supported by significant capital investments in its Pune multi-modal facility.

The expansion comes as the aviation industry seeks to diversify supply lines and increase production capacity for next-generation engines. Leading this transition on the ground are industry veterans like Srinivasan Dwarakanath, Director General of the Aerospace India Association (AIA), who characterizes the current environment as a pivotal “inflection point” for Indian manufacturing.

From Engineering Services to High-Value Manufacturing

Historically known for its strength in software and engineering services, India is now moving rapidly into complex hardware manufacturing. GE Aerospace reports that its sourcing from India has grown substantially, driven by a tiered supply chain that includes both massive conglomerates and specialized Micro, Small, and Medium Enterprises (MSMEs).

At the heart of this strategy is GE’s multi-modal facility in Pune. In November 2025, the company announced a $14 million expansion of the site, bringing the total investment to $44 million over two years. This facility is unique within GE’s global network, capable of producing diverse components for different business units under one roof.

Key Infrastructure Investments

  • Pune Multi-Modal Facility: Exports components for GEnx, GE9X, and LEAP engines to assembly lines in the United States and France.
  • Workforce Development: The facility has trained over 5,000 production associates in specialized aerospace manufacturing processes.
  • Global Research Centre (Bengaluru): Houses over 1,000 researchers providing the R&D backbone for manufacturing operations.

The Supplier Ecosystem

GE Aerospace has established deep partnerships with Indian manufacturers to produce critical components for its most popular engine programs, including the LEAP engine used in the Boeing 737 MAX and Airbus A320neo. The supply chain is anchored by several key players:

Tata Advanced Systems Ltd (TASL)

A long-standing partner, TASL manufactures compressor casings, high-pressure turbine components, and combustion chambers. In late 2022, GE extended a contract with TASL valued at over $1 billion. The company operates a Centre of Excellence in Hyderabad specifically dedicated to aero-engine components.

Raghu Vamsi

Representing the specialized MSME sector, Raghu Vamsi supplies precision connectors, fuel nozzles, and valve actuators. The company recently launched a ₹300 crore ($36 million) integrated facility in Hyderabad to expand capacity for global OEMs.

“It’s not just about growth but about evolving together. There’s a degree of complexity and capability that we have traversed as a GE Aerospace partner.”

, Preeti Vamsi, Director, Raghu Vamsi

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Godrej Aerospace

Godrej manufactures complex assemblies, including ventilation systems for LEAP engines. In late 2025, the company secured a contract with Safran,GE’s partner in CFM International,for titanium-based engine parts, further integrating into the global supply web.

Industry Leadership and Strategic Context

Srinivasan Dwarakanath, formerly the CEO of Airbus India Operations and now a key industry advocate, notes that the interest from global Original Equipment Manufacturers (OEMs) is unprecedented. He predicts that India’s aerospace exports could grow tenfold to $20 billion annually within the next decade.

“We are at an inflection point… I have not ever seen so much inbound interest for manufacturing from global OEMs. India, with its sophisticated technological foundation and manpower, is ready for aerospace.”

, Srinivasan Dwarakanath, Director General, Aerospace India Association

This growth aligns with the Indian government’s “Make in India” and “Atmanirbhar Bharat” initiatives, which push for the localization of defense and aerospace production. The Aerospace India Association is currently working to localize the sourcing of raw materials, such as titanium and steel, to further secure the supply chain.

AirPro News Analysis

The aggressive expansion of GE Aerospace in India reflects a broader “China Plus One” strategy adopted by major Western industrial firms. By diversifying manufacturing bases, companies aim to insulate themselves from geopolitical tensions and supply chain disruptions that have plagued the industry in recent years.

However, the transition from low-value components to critical rotating parts,like those produced by TASL,requires rigorous quality control and certification processes. GE’s investment in training 5,000 associates suggests a long-term commitment to bridging the skills gap, ensuring that Indian manufacturing meets the exacting standards of global aviation regulators. If successful, this ecosystem could serve as a blueprint for other aerospace giants looking to leverage India’s industrial capacity.

Frequently Asked Questions

What is the significance of the Pune facility?
The Pune multi-modal facility is GE’s first factory globally capable of producing products for multiple business units in one location. It exports components for major engine programs like the GEnx and LEAP.

Who are the major suppliers for GE in India?
Key suppliers include Tata Advanced Systems Ltd (TASL), Raghu Vamsi, Godrej Aerospace, Mahindra Aerostructures, and Belcan.

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How much has GE invested in the Pune facility recently?
GE Aerospace announced a $14 million expansion in November 2025, bringing the total investment in the site to $44 million over two years.

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Photo Credit: GE Aerospace

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Gama Aviation Gains EASA Part 147 Approval for King Air Training

Gama Aviation receives EASA Part 147 approval to provide King Air 200 and 300 series maintenance training from UK facilities in Bournemouth and Glasgow.

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This article is based on an official press release from Gama Aviation.

Gama Aviation Secures EASA Part 147 Approval for King Air Maintenance Training

Gama Aviation has announced a significant expansion of its engineering training capabilities after receiving European Union Aviation Safety Agency (EASA) Part 147 approval. According to the company’s official statement, this certification authorizes Gama Aviation to deliver type training for the Beechcraft King Air 200 and 300 series aircraft powered by Pratt & Whitney Canada PT6 engines.

The approval allows the aviation services company to provide both theoretical and practical training, conduct examinations, and issue certificates of recognition. These services will support multiple engineering license pathways, specifically B1 (Mechanical), B2 (Avionics), and Type C (Base Maintenance). To maximize accessibility for operators and engineers across the United Kingdom, the company confirmed that training will be delivered from its facilities in both Bournemouth and Glasgow.

Strengthening Technical Infrastructure

This regulatory milestone represents a strategic move to bring critical training infrastructure in-house. By securing Part 147 approval, Gama Aviation aims to support the progression of engineering licenses and ensure that operators can maintain resilient technical teams. The company emphasized that this development aligns with its broader Maintenance, Repair, and Overhaul (MRO) strategy.

Paul Kinch, Managing Director of MRO at Gama Aviation, highlighted the importance of the King Air platform in a statement included in the press release:

“This approval is another important step in the continued development of our maintenance training capability. King Air aircraft remain a cornerstone of many corporate and special mission fleets, and it is essential that operators have access to trusted, high-quality training to support safe and efficient operations.”

Kinch further noted that expanding the Part 147 scope allows the company to invest in the expertise required for current operations while anticipating future fleet requirements.

Practical Training Focus

The training programs are designed to combine classroom learning with hands-on practical experience. Olusegun Johnson, Training Manager, Part 147 at Gama Aviation, stated that the organization’s focus is on preparing engineers for the “realities of the maintenance environment.”

“By offering training in both Bournemouth and Glasgow, we are making it easier for customers to access approved courses while maintaining the quality, consistency and regulatory compliance they expect from Gama Aviation.”

AirPro News Analysis: Strategic Context and Industry Impact

While the official press release focuses on the regulatory approval, AirPro News notes that this development occurs against the backdrop of a wider industry engineering shortage and specific operational commitments held by Gama Aviation.

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Supporting Critical Services

The decision to establish training capabilities in Glasgow is likely strategically aligned with Gama Aviation’s long-standing relationship with the Scottish Ambulance Service (SAS). According to industry records, Gama Aviation has supported the SAS for over 30 years. In July 2024, the company signed a deal to purchase three new King Air 360C aircraft to support this contract. By localizing training in Glasgow, Gama Aviation effectively insulates its critical air ambulance operations from external labor shortages, ensuring a steady pipeline of qualified engineers to maintain these life-saving aircraft.

Addressing the Engineering Skills Gap

The aviation sector is currently navigating a severe workforce shortage, with a significant portion of the licensed engineering population nearing retirement. Furthermore, regulatory complexities following Brexit have complicated the flow of licensed engineers between the UK and the EU. By securing EASA approval to train B1, B2, and Type C engineers internally, Gama Aviation is not only reducing its reliance on third-party providers like FlightSafety International or CAE but also potentially creating a new revenue stream by offering these high-demand courses to external operators.

Market Landscape

The Beechcraft King Air series remains the most popular business turboprop globally, with over 7,000 units delivered and approximately 825 operating within the EMEA (Europe, Middle East, and Africa) region. These aircraft are frequently utilized for special missions, including surveillance and air ambulance services, due to their versatility and short-runway performance.

Gama Aviation’s entry into the training market places it alongside other established providers. Competitors such as 2Excel Engineering have also recently sought to bolster domestic training capabilities, highlighting the high demand for “home-grown” UK-based training solutions for this ubiquitous airframe.

Frequently Asked Questions

What is EASA Part 147 approval?
EASA Part 147 is a regulatory standard that governs maintenance training organizations. It authorizes an organization to conduct training and examinations required for the issuance of aircraft maintenance licenses.
Which aircraft are covered by this new approval?
The approval covers the Beechcraft King Air 200 and 300 series equipped with Pratt & Whitney Canada PT6 engines.
Where will the training take place?
Gama Aviation will deliver these training programs from its facilities in Bournemouth and Glasgow.

Sources

Photo Credit: Gama Aviation

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