Mtu Aero Engines Hldgs Ag (MTUAF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to our conference call for MTUS Q2 2026 results. We'll begin today's session with Johannes presenting a first view on results and a look on recent developments. Following that, Katja will walk you through the financials. Johannes takes over for the guidance and some key takeaways before we open the floor for questions. With that, it's my pleasure to hand over to Johannes. Yeah, thanks Thomas and welcome to everybody. We have delivered an excellent performance in the first half of 2026, so group revenues increased by 13% to roughly 4.7 billion euros. Our adjusted EBIT grew 5% to 692 million euros, resulting in a strong margin of 14.8%. So the free cash flow generation was notably strong, reaching 294 million in the last six months. This represents an increase of 39% compared to the prior period in 2025. As a result, our cash conversion rates stood at 59%, exceeding the full year guidance we provided in February. While the situation in the Middle East remains highly volatile, we have not seen any material impact on our business so far. We therefore remain confident in achieving our 2026 guidance on revenues and EBIT adjusted, reflecting the strong performance in the first half of the year. We are rising our free cash flow outlook today. We will provide more details in just a few minutes. Let me first take a closer look at the current market environment and share some views on topics particularly relevant for MTU. Looking at our industry and especially at MTU, recent geopolitical tensions in the Middle East have increased near-term volatility, but they have not changed the underlying fundamentals of our business. We have seen no material impact on our first half performance, no cancellations and no evidence of structural deferral across either OEM or MRO market....