MTU Aero Engines AG announces a dividend of €2 per share for 2023 and forecasts growth in all market segments

On February 21, 2024, the executive board of MTU Aero Engines AG decided to propose a dividend of €2 per share for the financial year 2023. This proposal comes despite significant anticipated financial burdens between 2024 and 2026, particularly related to the gear-driven turbofan inspection program. MTU also plans to continue investing in its sites and technologies for next-generation products. These investments are expected to result in high cash flow charges, limiting the ability to maintain dividends at the current level during this period.

Despite these challenges, the executive board views its dividend proposal as a balance between expected cash outflows and the company's strong growth prospects. MTU anticipates growth in all market segments for 2024, with revenues expected to range between €7.3 and €7.5 billion. An adjusted EBIT margin of over 12% is also forecasted, as well as free cash flow in the low hundreds of millions of euros. Financial results for the year 2023 and forecast details for 2024 will be published as scheduled on February 29, 2024.