MTU Aero Engines (XTRA:MTX): Assessing Valuation After Strong Q3 Earnings and Upgraded 2025 Outlook

MTU Aero Engines (XTRA:MTX) surprised investors with third-quarter earnings that topped market forecasts. Revenue gains in its commercial engine and maintenance units, along with higher net income, underscore the company’s operational momentum.

See our latest analysis for MTU Aero Engines.

MTU Aero Engines’ upbeat third-quarter results and reaffirmed guidance have clearly given the stock fresh momentum, with a 20.95% year-to-date share price return. For investors, the real highlight is the impressive 27.52% one-year total shareholder return. This points to building confidence in the company’s growth path and outlook.

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Yet with the stock’s sharp rally and continued upbeat guidance, the real question for investors is whether MTU Aero Engines is still undervalued or if the market has already factored in all of its anticipated growth.

Most Popular Narrative: 1.1% Undervalued

MTU Aero Engines' most widely followed fair value estimate stands just above the latest close, suggesting the share price aligns closely with projected fundamentals. What is powering this narrative's conclusion, and which business levers matter most? Let's turn to a core catalyst in the narrative itself.

The surge in global air travel demand and robust order intake for new, fuel-efficient engines like the GTF (highlighted by record deals with airlines such as Wizz Air, Frontier, and LOT) are expected to continue driving strong OEM and MRO revenue growth and expanding order backlog, translating to higher long-term revenue and earnings visibility.

Read the complete narrative.

Curious what lies beneath the surface of this close-call valuation? The real surprise may be in the growth assumptions and profit margins driving the forecast. Find out which bold financial levers are hidden in the narrative projection and why they keep analysts and investors debating what the future holds for MTU Aero Engines.

Result: Fair Value of €393 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing geopolitical tensions or unexpected issues with key new engine programs could quickly challenge the current outlook for MTU Aero Engines.

Find out about the key risks to this MTU Aero Engines narrative.

Build Your Own MTU Aero Engines Narrative

If you have your own takeaways or want to examine the numbers directly, you can easily craft a personal perspective in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding MTU Aero Engines.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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