(Reuters) -MTU Aero Engines reported a third-quarter adjusted operating profit that beat market expectations on Thursday, as revenue growth in its commercial engine and maintenance businesses helped cushion the impact of U.S. tariffs.
The Airbus and Boeing supplier said its adjusted earnings before interest and taxes grew around 24% from a year earlier to 339 million euros ($395 million), exceeding analysts' average forecasts of 292 million euros provided by MTU.
"We anticipate a mid-twenties percentage increase in adjusted EBIT for 2025, hitting the upper end of our previous forecast," said Chief Financial Officer Katja Garcia Vila.
Revenue in MTU's commercial maintenance and commercial engine units increased by 20% in the first nine months of the year, it said in a statement. The flagship Geared Turbofan (GTF) Pratt & Whitney series accounted for 40% of the commercial maintenance revenue and the largest proportion of orders on hand, it added.
A key concern affecting MTU last year was the fallout from contaminated powder metal used in parts for the GTF engine fleet, which had forced airlines to ground hundreds of aircraft for accelerated inspections and repairs.
Following a recent EASA certification, MTU expects to start final assembly and delivery of GTF Advantage engines by mid-2026, CEO Johannes Bussmann said in a press call.
As a result of restructured logistics chains to avoid unnecessary U.S. routing, MTU now expects a low double-digit million-euro impact from U.S. tariffs in 2025, down from its earlier estimate for a mid-to-high double-digit million-euro hit.
"Aviation is an inherently international industry, and tariffs are certainly not constructive for any party involved," Garcia Vila said.
Shares of the Munich-based company were up 1.6% by 0853 GMT.
($1 = 0.8575 euros)
(Reporting by Maria Rugamer, editing by Milla Nissi-Prussak)