Overview
- MTU Aero Engines expects mid-to-high double-digit million euro costs from newly imposed 10% US tariffs on aircraft parts.
- To minimize tariff-related expenses, MTU is rerouting supply chains to move components directly between European facilities, bypassing the US.
- The company reported a 25% revenue increase to €2.1 billion and a 77% rise in net profit to €224 million in Q1 2025.
- Despite the tariff challenges, MTU maintains its forecast of 15% profit growth for 2025, though this excludes potential tariff impacts.
- Long-term measures like establishing alternative production sites are deemed impractical due to high costs and lengthy timelines.