$MTX (+5,29%) is still significantly undervalued in my opinion, considering that many hundreds of billions will be spent on armaments over the next few years. Perhaps the company is not well-known enough?

$MTX (+5,29%)
$AIR (+2,53%)
$SAF (+3,89%)

Good quarterly figures from Safran gave the entire aviation industry sector a noticeable tailwind at the end of the week. The shares of the French engine manufacturer rose significantly following the better-than-expected data. The two DAX-listed companies MTU and Airbus also took off in their wake.

Safran grew more strongly than expected at the start of the year. Turnover rose by 17 percent to just under 7.3 billion euros. The Group, which supplies engines to aircraft manufacturers Airbus and Boeing, among others, also benefited from acquisitions and the weaker euro in the first quarter compared to the previous year.

Adjusted for these effects, growth amounted to 14 percent. As is usual for French companies, Safran did not publish key profit figures for the first quarter. However, the Group confirmed its forecast for the current year. For 2025, Group CEO Olivier Andriès is still targeting an increase in sales of around ten percent. Adjusted operating profit is expected to climb to between 4.8 and 4.9 billion euros. However, possible consequences of the tariff conflict triggered by the USA have not been taken into account.

Analysts initially stated that Safran had exceeded expectations in the first quarter. Ian Douglas-Pennant from UBS justified this above all with the growth in the spare parts business, which is also often regarded as very important by analysts at MTU. David Perry of JPMorgan spoke of a "solid start to the year". Douglas Harned from Bernstein Research wrote that Safran's targets for this year were looking more and more achievable. Although experts lacked concrete information on the subject of US tariffs, this did not deter investors from buying.

https://www.deraktionaer.de/artikel/aktien/dax-gewinner-mtu-und-airbus-wieder-im-steigflug-das-steckt-dahinter--20379008.html

Slump in the DAX: investors are seeing red

There is a great deal of uncertainty on the stock markets at the moment, and this is being further fueled by US President Trump's aggressive tariff policy. On the last trading day of the week, investors have to accept massive losses in the Dax. Of the 40 companies listed in the leading German index, only two shares were able to record a positive closing price. The remaining 38 stocks experienced double-digit declines in some cases. Deutsche Bank was particularly affected $DBK (+1,96%)which fell by 9.77 percent, and MTU Aero Engines $MTX (+5,29%)whose shares fell by 8.11 percent. Deutsche Börse, Infineon $IFX (+1,84%) and Siemens Energy $SIE (+3,19%) also suffered losses of more than 7 percent. The Dax itself closed 4.95 percent lower at 20,641.72 points.

Trade war continues to weigh on the markets

Pressure on the markets remains high as uncertainty over trade relations between the USA and China persists. China's announcement that it would impose counter-tariffs on US goods has heightened fears of a full-scale trade war. At times on Friday, the Dax fell by up to 5.6 percent to 20,579 points. The MDax and EuroStoxx50 also suffered significant losses. There were significant declines in the banking sector in particular, which is heavily dependent on economic developments. Deutsche Bank and Commerzbank $CBK recorded losses of up to 12.1 and 9.3 percent respectively. Volatility on the markets is likely to remain high as long as the uncertainty surrounding customs policy persists.

Slight stability at Adidas and Beiersdorf

Despite the general downward trend, there were also some bright spots in the Dax. The shares of Adidas $ADS (-0,28%) were able to maintain their position as the lone frontrunner with a plus of 0.54 percent. Symrise $SY1 (-0,1%) and Beiersdorf $BEI (-1,28%) also remained relatively stable, with Symrise recording a minimal gain of 0.01%, while Beiersdorf fell by 0.37%. Investors are hoping that the negative spiral of tariffs and counter-tariffs can be halted through negotiations, but the uncertainties remain and could continue to weigh on the markets.

Sources:

https://www.n-tv.de/wirtschaft/Das-sind-die-groessten-Verlierer-im-Dax-article25682125.html

https://www.n-tv.de/wirtschaft/Dax-schmiert-ab-US-Zoelle-China-Zoelle-und-jetzt-article25681044.html

$MTX (+5,29%)

| Construction begins on new hall for MTU Maintenance Berlin-Brandenburg in Ludwigsfelde

| Maintenance, training, apprentice workshop and 40 new employees under one roof

| MTU Power aims for 30 percent more store visits for industrial gas turbines

Ludwigsfelde, March 31, 2025 | MTU Maintenance Berlin-Brandenburg is expanding its site in Ludwigsfelde with a new hall for the maintenance of industrial gas turbines (IGT). They are used to generate energy and are modifications of GE Aerospace aircraft engines, known as aero derivatives. In the coming years, MTU will increase the maintenance volume for LM2500 and LM6000 industrial gas turbines by 30 percent compared to 2024. MTU Power, MTU's maintenance division for industrial gas turbines, is thus expanding its position as the largest independent maintenance provider for the LMTM series on the market.

"Services for industrial gas turbines are an important building block for the success of our location," says André Sinanian, Managing Director of MTU Maintenance Berlin-Brandenburg. "This plant expansion is an important step on the way to making the site fit for the coming decades."

MTU is creating jobs for 40 additional engine experts in the process. In order to have enough space for this growth, MTU had already acquired an existing building in the immediate vicinity of the company site in 2024. Following the demolition of this building, a state-of-the-art hall with an operating area of more than 10,500 square meters will be built there. In future, this will house the site's IGT workshop with an engine dock for various maintenance services as well as a modern training workshop. This training workshop will be part of a new training center. Mechanics will be able to acquire new qualifications and deepen their existing knowledge there. Commissioning is scheduled for January 2027.

"The demand for IGT maintenance is there, and I am very confident that we will achieve our goal of maintaining 30 percent more engines with us," says Henrik Harksen, IGT Sales Manager at MTU. "That is why we have also strengthened our sales team and our global market presence."

Industrial gas turbines from the LMTM program have been serviced at the Ludwigsfelde site for 30 years. Since then, MTU has carried out more than 1,500 maintenance services, most of them for the LM2500. In addition, teams from Ludwigsfelde carry out special service assignments worldwide for the two models mentioned above as well as for the LM5000. Within MTU's entire maintenance network, the Ludwigsfelde site has the most diverse portfolio. In addition to the industrial gas turbine business, it offers customized solutions for the maintenance of the CF34-8 and -10E aircraft engines, the CFM56-7B and a number of Pratt & Whitney Canada engines, including the PW200, PW300 and PW500. Last year, MTU equipped the test rig in Ludwigsfelde with the latest hardware and software.

https://www.mtu.de/de/newsroom/presse/aktuelle-presseinformationen/press-release-detail/mtu-maintenance-berlin-brandenburg-starts-construction-of-new-mro-facility-for-lmtm-series-igts/

$MTX (+5,29%)

Vancouver, April 04, 2025 | MTU Maintenance has signed an exclusive contract with Air Canada for the maintenance of its CF6-80C2 engines. With this contract, the two companies continue their strong partnership: MTU Maintenance has been Air Canada's exclusive maintenance partner for this engine type for more than 25 years.

Under the terms of the agreement, the Canadian airline will send the engines of its Boeing 767 freighter aircraft to MTU Maintenance Canada near Vancouver. Among other things, maintenance and repair work as well as repairs to add-on parts will be carried out there. The Canadian site receives support from MTU Maintenance in Hanover. This location also has extensive expertise in the maintenance of CF6-80C2 engines. The MTU Maintenance location in Dallas complements MTU's range of services with on-site customer services (on-wing and near-wing services). For MTU, Dallas is the North American center of its ON-SITEPlus network. The contract between MTU Maintenance and Air Canada runs until 2027, with an option to extend for a further three years.

https://www.mtu.de/de/newsroom/presse/aktuelle-presseinformationen/press-release-detail/mtu-maintenance-and-air-canada-sign-exclusive-cf6-80-mro-contract/

$$MTX (+5,29%)

NEW YORK (dpa-AFX Analyst) - The analyst firm Jefferies has left its rating for MTU at "Buy" with a target price of 430 euros. In the midst of the defense debate, analyst Chloe Lemarie also reviewed her assumptions and ranking in the commercial aircraft sector in her industry commentary published on Friday. MTU becomes her "top pick" in this sector, followed by Rolls-Royce and Safran. More positive price drivers are emerging for the engine manufacturer, especially as the comparative basis from the first quarter of the previous year is low. It remains neutral for Airbus due to limited delivery momentum for the time being./tih/ag

Hello my dears, the last few days there have been repeated discussions here. About independence from the USA. About the F35.

During my little research, however, I also discovered that the USA is not entirely independent of Europe.

Especially when it comes to development work. And here I often noticed

$MTX (+5,29%)

noticed.

But MTU is also significantly involved in the development of the new "New Generation Fighter Engine".

The New Generation Fighter Engine (NGFE) is the heart of the next-generation fighter aircraft that is at the center of the European FCAS.

The Future Combat Air System (FCAS) is the European air defense system that is to be available from 2040. Germany, France and Spain are working on it together. The centerpiece is the New Generation Fighter, a manned jet of the latest generation.

Engine specialists MTU Aero Engines, Safran Aircraft Engines and ITP Aero are developing the engine for the New Generation Fighter under the leadership of EUMET (European Military Engine Team), a joint venture between MTU and Safran. MTU is assuming responsibility for its core competencies of high- and low-pressure compressors, compressor center frames and parts of the control systems and is in charge of aspects of engine maintenance. Safran is in charge of engine design and integration, while ITP Aero is responsible for the low-pressure turbine and the thrust nozzle.

https://aeroreport.de/de/good-to-know/kurz-erklaert-new-generation-fighter-engine

Today, one third of commercial aircraft worldwide fly with MTU technology. MTU is a system partner for almost all aircraft engines of the German Armed Forces. MTU has close ties with all major manufacturers such as Pratt & Whitney, General Electric, Rolls-Royce, Safran Aircraft Engines and GKN Aerospace through its shareholdings and subsidiaries (MTU Aero Engines North America).

The company has a total of 18 locations worldwide. The commercial engine business currently accounts for around 25 percent of sales. Civil maintenance accounts for around 66 percent and the military business for 9 percent.

In 2002, the company received the German Industry Innovation Award. In 2013, MTU Aero Engines again won the German Industry Innovation Award in the large company category. This time for the development of the high-speed low-pressure turbine for the Pratt & Whitney PW1000G engine.

Dear all, do you still see potential for MTU based on its growth and valuation?

The EbiT margin remains constant at around 14%.

It seems like my post about Europas F-35-Sicherheitsdilemma could not have come at a better time:

Dependence on US armaments is increasingly perceived as a risk factor for Europe's military and security sovereignty and is now being publicly addressed at the highest political level faster than I would have expected.

French President Emmanuel Macron

President of France Emmanuel Macron has made it clear in an interview with Le Parisien that he is critical of Europe's purchase and use of US armaments and proposed replacing them with European alternatives.

Macron was also quite clear: "Those who buy Patriot systems should be offered the next generation of the Franco-Italian SAMP/T. Those who buy F-35s should be offered the Rafale fighter aircraft."

His main concern is greater strategic autonomy for Europe:

• Criticism of US systems: Poland plans to buy American F-35 fighter jets ($LMT (+2,98%)) and Patriot ($RYTT34). Macron questions these decisions and proposes European solutions.
• European optionsMacron specifically mentions approaches such as joint European development projects to reduce dependence on the USA. Examples include European fighter jets such as Saab Gripen ($SAAB B (+1,36%)), Eurofighter ($AIR (+2,53%) - $BA. (+0,35%) - $MTX (+5,29%) - $LDO (+0,48%)) or Dassault
  Rafale ($AM (-0,64%)) or air defense systems (e.g. SAMP/T from $HO (-2,1%), $BA. (+0,35%), $AIR (+2,53%) and $LDO (+0,48%) or Oerlikon Skynex from $RHM (+0,16%)).
• Long-term strategyMacron's proposals aim to strengthen Europe's military independence by pooling technology, production capacities and resources in the EU member states' own economic area in the long term.

Macron is thus sending a clear signal for more European cooperation in the defense sector and against an excessive focus on US technology.

#emmanuelmacron
#usa
#defense
#verteidigung
#rüstungsindustrie
#europa
$R3NK (-0,44%)
$IE0002Y8CX98 (+0,25%)
$HAG (+0,16%)

With Canada the next NATO partner is now looking for alternatives to the US fighter jet F-35 ($LMT (+2,98%) ) and is examining various models such as the Gripen ($SAAB B (+1,36%) ) or the Eurofighter ($AIR (+2,53%)
$BA. (+0,35%)
$LDO (+0,48%)
$MTX (+5,29%) ). The background to this is not only financial aspects - technical requirements and geopolitical considerations also play a role. At the same time, there are questions about maintenance costs and military independence from the USA. With its decision, Canada is setting the course for new international cooperation. This opens up exciting opportunities for the European aerospace industry.

In my opinion, Saab's Gripen currently has the best chance of becoming Canada's newest fighter jet. The concept of the Swedes, especially in terms of range, price/performance, maintenance and usability (optimized for use in Canadian latitudes; for take-off and landing on regular roads in remote regions and service there with small teams) fits like a glove to the Canadian aviator's eye. Canada also has the opportunity to produce the Saab Gripen in its own country.

Source: https://www.n-tv.de/politik/Kanada-sucht-nach-Alternativen-zum-US-Kampfjet-F-35-article25632225.html

#kanada
#usa
#f35
#saab
#eurofighter

https://youtu.be/QyD0liioY8E?si=-IJOWHYPEuT2IIr2

First countries reconsider their orders, Portugal has now canceled, Turkey now wants Eurofighters. Eurofighter, Gripen and Rafale as alternatives.

In Europe, and particularly among the USA's NATO partners, uncertainty about political and military relations between the USA under Donald Trump and Europe has been growing steadily since his inauguration in January 2025. Trump's statements and especially his actions in recent weeks have shown unmistakably that the USA is no longer a reliable partner for Europe (and presumably also NATO) and does not want to be.

Especially those European countries that, in response to Russia's war of aggression against Ukraine F-35 fighter jets from Lockheed Martin $LMT (+2,98%) worth well over 250 billion euros are now faced with a critical dilemma:

Technically, Europe's F-35 fleets can be deactivated by the US at any time, as each aircraft relies on US-controlled launch codes and proprietary US communication and navigation systems (see also the deactivation of Ukrainian HIMARS systems (from Lockheed Martin $LMT (+2,98%) ) in the last few days. Source: Tagesspiegel, March 2025). In the event of a crisis, the USA could practically paralyze the European air forces or at least prohibit missions. The USA had already done this with Egyptian F-16 fighter jets in 2014. (Source: T-Online, February 2025)

Since 2022, 12 European countries have ordered around 550 F-35 fighter jets (in different variants and versions):

• Germany: 35
• Romania: 32 (additionally planned: 16)
• Czech Republic: 24
• Finland: 64
• Switzerland: 36
• Netherlands: 52 (including additional orders)
• Poland: 32
• Belgium: 34
• Italy: 90 (60 F-35A and 30 F-35B)
• Norway: 52
• United Kingdom: 48 (planned: 138)
• Denmark: 27

The first countries are already taking action: Portugal recently announced that it was halting the planned procurement of F-35 fighter jets and looking at European alternatives instead.

"The Portuguese Defense Minister Nuno Melo has announced that the country will not purchase F-35 fighter jets from the United States in view of the current geopolitical situation and the unpredictability of US policy. Instead, alternatives from European production will also be considered." (Source: Poder Aéreo, March 2025)

Turkey also recently received a concrete offer for 40 Eurofighter jets from Airbus $AIR (+2,53%) BAE Systems $BA. (+0,35%) and Leonardo $LDO (+0,48%) - a clear sign of distancing itself from the USA.

"Turkey plans to procure a total of 40 Eurofighter Typhoon Tranche 4 fighter jets in the form of 20+20. All Tranche 4 jets, which represent the most advanced Typhoon configuration for air-to-air combat, will be newly produced.

However, Ankara can also procure a number of used Typhoons for training purposes. This possibility is also currently under discussion." (Source: Al-Monitor, March 2025).

If other European countries follow these examples, European fighter aircraft manufacturers could benefit considerably. Now, fighter aircraft are not of-the-shelf products that are mass-produced (with the exception of the F-35, unfortunately). Germany primarily opted for the F-35 because only the F-35 can be equipped with the nuclear weapons stationed in Germany (the use of nuclear weapons stationed in Germany - even just transportation from A to B - requires joint technical approval by Germany and the USA).

In my opinion, Gripen (Saab $SAAB B (+1,36%) ) and Eurofighter (Airbus $AIR (+2,53%) BAE Systems $BA. (+0,35%) Leonardo $LDO (+0,48%) MTU Aero Engines $MTX (+5,29%) etc) would be the most attractive alternatives in the short term. The Saab Gripen has an almost unbeatable price-performance ratio (especially thanks to the low service and maintenance costs) and the infrastructure for Eurofighter is already solidly developed. Dassault Aviation $AM (-0,64%) (Rafale) should of course not be underestimated either, but I see it in 3rd place.

I can well imagine that this costly security dilemma is currently being hotly debated in Europe's defense ministries and that exit strategies are already being evaluated. I can also imagine that European buyers of the F-35 are holding on to their canceled orders as leverage in case Trump imposes even more dramatic punitive tariffs or even escalates to a whole new level. In addition to the orders for F-35s, the Europeans are also likely to be reviewing their orders for HIMARS and the like.

However, one thing is already clear to the Europeans: Europe must become sovereign as quickly as possible - in terms of security policy, economy and technology - and can no longer rely on the USA. After Portugal and probably also Turkey, I expect more F-35 dominoes to fall in the near future.

Sources:

https://www.t-online.de/nachrichten/ausland/internationale-politik/id_100609126/general-alarmiert-usa-koennten-europaeische-f-35-jets-abschalten.html

https://www.aereo.jor.br/2025/03/13/portugal-descarta-compra-de-cacas-f-35-e-avalia-alternativas-europeias/

https://www.al-monitor.com/originals/2025/03/turkey-receives-price-offer-40-eurofighter-jets-amid-trump-eu-rift

https://www.tagesspiegel.de/internationales/usa-deaktivieren-zielerfassung-bei-den-himars-verliert-die-ukraine-jetzt-eine-ihrer-effektivsten-waffen-13327513.html