Rankings Defence, aerospace & space MTU Aero Engines

MTU Aero Engines

Defence, aerospace & space · GermanyRank 113 of 829Prices 3 Nov 2026Model 1.470+ zone

15070100

In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.

Biggest deductions

GTF (Pratt & Whitney/RTX)−6
FCF yield−4
Margin and mix−3

Strengths

Raised guidance+2
Order book+1

How the score is built

From 100 to 81, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start

81Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price: 337.50 EUR
Median analyst target: 415.00 EUR
Upside to median: +23.0%
Analysts: 20
Target range: 320.00 – 530.00 EUR
52-week change: −9%
P/E (trailing): 20.2
Forward P/E: 17.1
PEG: 1.95

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 3 findings−6 of −30

Margin and mix
The adjusted EBIT margin fell from 15.9% to 14.8% in H1 2026 (adjusted EBIT +5% vs revenue +13%) because of start-up costs and mix. Growth comes from low-margin maintenance (MRO +21%), whose EBIT margin fell to 8.0% from 9.1% in Q2; MRO is now about 71% of revenue vs 64% in 2021.
boerse-express.com
−3
Moat
MTU is a junior partner in the engine programmes (including 18% of the GTF) and controls neither design nor quality; the powder-metal case at Pratt & Whitney shows that the partner's mistakes hit MTU in full. The GTF makes up about 46% of civil maintenance in H1.
globalbankingandfinance.com
−2
ROIC
ROIC fell from 22.6% (2025) to 17.3% TTM and ROCE from 16.3% to 15.0%; still clearly above WACC (8.5%), but the direction is down while capital tied up rises (working capital −€781m TTM, capex €448m).
stockanalysis.com
−1

Price

Today's multiples against the company's own history and its peers. · 2 findings−7 of −35

Multiples vs own history
Forward P/E 18.6 (19.8 on 2026E, 18.1 on 2027E) vs 16.1–24.2 in 2021–25 (median about 20.7); EV/EBITDA 12.0 vs 13.9–19.8; P/B 4.3 vs 3.5–5.0. Below its own median, but earnings growth is also low (2026E EPS only +6.5%). Cheaper than RTX (forward P/E about 25).
stockanalysis.com
−3
FCF yield
FCF yield 2.9% TTM (P/FCF 35) and about 2.7% on analysts' 2026 FCF estimate (€539m) at a market value of about €20bn; the earnings yield is 4.8%, so a large part of profit does not turn into cash.
stockanalysis.com
−4

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−9 of −35

GTF (Pratt & Whitney/RTX)
The powder-metal inspections of the PW1100G are still running: RTX reports fewer aircraft-on-ground days (AOG about 15% lower in Q1, MTU says about −25% year to date), but the problem is only expected to be resolved by the end of 2026, and MTU keeps paying its share of compensation to airlines (RTX's total estimate $6–7bn). Airbus calls Pratt the 'pacer' for the A320 ramp in 2026–27, which also slows MTU's new engine deliveries.
flightglobal.com
−6
Macro and aviation
Earnings follow air traffic and airline finances; the CEO cited 'high volatility in the Middle East' in H1, and a drop in traffic would hit the dominant maintenance business.
mtu.de
−2
Analyst disagreement
UBS maintains a Sell with a €320 target (−15%), and 3 of 20 analysts rate it sell; targets range from €320 to 530.
stockanalysis.com
−1

Plus

Only documented strengths. · 2 findings+3 of +15

Raised guidance
2026 cash conversion guidance raised to 50–60% from 45–55% after FCF of €294m in H1 (+39%); revenue and EBIT guidance (€9.2–9.7bn / €1.35–1.45bn) maintained.
mtu.de
+2
Order book
Order book of €31.6bn after Q1 2026, about 3.4 years of revenue, dominated by the GTF and V2500.
de.investing.com
+1

Caveats

What the score does not capture, or where the data is weak.

MTU owns 18% of Pratt & Whitney's GTF programme and bears its share of compensation and extra maintenance for the powder metal issue; this only counts under T3. stockanalysis' FCF is after GTF compensation, so underlying FCF is higher, but the share is not disclosed publicly. The dollar rate and hedging have not been examined (most revenue is in USD). Q3 comes 29/10. stockanalysis shows −5.3% in share count quarter on quarter, which is hardly real (buybacks only €19m TTM); no plus has been given for it.