MTU Aero Engines Outlook improving on multiple fronts; we see c40% upside over next 18 months

Research evidence excerpt

MTU Aero Engines Outlook improving on multiple fronts; we see c40% upside over next 18 months

J P M O R G A N Europe Equity Research

24 June 2026

MTU Aero Engines Overweight

MTXGn.DE, MTX GR

Outlook improving on multiple fronts; we see c40% Price (23 Jun 26):€337.4

upside over next 18 months Price Target (Dec-27):€465.0

We believe that the outlook for MTU is improving on multiple fronts. First, the European Aerospace & Defense

ACsignificant drop in the price of jet fuel is a clear positive for all the European Civil David H Perry, CFA

Aero (ECA) engine companies. Second, in the last month the $ has rallied from (44-20) 7742-5606

$1.18/€1 to $1/€1.14. Third, last week we hosted MTU’s CEO at our Industrials david.h.perry@jpmorgan.com

Conference and came away more confident on the outlook for the GTF J.P. Morgan Securities plc

programme. Finally, again following our meeting last week, we are more confident Lucy Fitzgerald

about MTU’s medium-term FCF and we raise our 2029-30 FCF estimates. Our (44 20) 3493-5251

lucy.fitzgerald@jpmorgan.com

EPS estimates are largely unchanged (Table 1) and our multiples-based Dec-27 PT J.P. Morgan Securities plc

of €465 is unchanged, implying c40% potential upside over the next 18 months.

Jash R Naik

• Iran conflict appears to have had far less impact on ECA than we feared: (91jash.naik@jpmchase.com22) 6157-3797

At the start of Q2, we took a tactically cautious view on European Civil Aero J.P. Morgan India Private Limited

(ECA) as we feared a protracted conflict and commensurate increase in the Titus MacDermot

price of jet fuel. Whilst a final peace deal has not yet been achieved, it does now (44-20) 3493-7137

appear that the US and Iran want to cease hostilities. The price of jet fuel is still titus.macdermot@jpmorgan.com