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MTU Aero Engines rated Strong Buy with 37% upside on growth in commercial and military engine services.

Analyst Insights
21 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

MTU Aero Engines is rated Strong Buy due to its strong commercial maintenance, repair, and overhaul (MRO) and military engine growth. The company has a €31.6 billion backlog and an expanding installed base of GTF engines, which supports multi-year earnings and free cash flow growth. Although margins are currently pressured by a higher mix of GTF MRO work, long-term margin and cash conversion targets are expected to improve significantly. MTU is undervalued at 10.2x EV/EBITDA compared to a 13.5x median, with potential upside from share buybacks.

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