MTU Aero Engines raises revenue outlook as maintenance business drives growth

Oct 29 (Reuters) - German engine maker MTU Aero Engines raised its full-year revenue forecast after third-quarter sales beat expectations on Thursday, as growth in its engine maintenance business more than offset weaker profitability in original equipment manufacturing.

MTU reported adjusted revenue of €2.43 billion ($2.7 billion) for the quarter, above a company consensus of €2.37 billion. Adjusted operating profit rose to €349 million, but narrowly missed analysts' forecast of €354 million.

The company's maintenance, repair and overhaul business remained the main growth driver, with revenue rising to €1.72 billion and adjusted operating profit climbing 20%, helping offset weaker earnings in the original equipment business.

Airlines have continued to spend on maintenance as supply chain disruptions and aircraft delivery delays keep engines in service for longer.

MTU raised its 2026 revenue outlook to between €9.5 billion and €9.7 billion, from €9.2 billion to €9.7 billion previously, and increased its cash conversion target. It maintained the target range for adjusted operating profit of €1.35 billion to €1.45 billion. 

Adjusted free cash flow rose to €172 million in the third quarter, comfortably ahead of analyst forecasts.

($1 = 0.8959 euros)

(Reporting by Maria Rugamer in Gdansk, editing by Milla Nissi-Prussak)