Thank you, Heidi. Good morning, and welcome to our conference call for MTU's preliminary full-year results 2025.

We'll begin today's session with Johannes sharing some thoughts on strategic priorities and a business review. Following that, Katja will walk you through the financials of the year 2025 as well as the guidance for 2026.

To close the presentation, Johannes will summarize the key takeaways before we open the floor for your questions in the Q&A session. With that, it's my pleasure to hand over to Johannes.

Thank you, Thomas, and a warm welcome to everybody. As already announced during the course of the Q3 call, I would like to share some key priorities of MTU's way forward with you.

MTU has a communicative growth agenda, and I'm completely committed to execute on that one. This means we will expand our footprint internationally and invest in even more technological capabilities.

Through our expansion in Hanover, Berlin, China, and especially our new LEAP facility in Fort Worth, Texas, we are leveraging our global presence. With this, we support the growth of our MRO business and increase efficiency to serve our customers even better.

With the latest development of the GTF, we have the most efficient engine in the narrowbody market. We developed this technology together with our partners and will continue to enhance this technology even further to be perfectly prepared for the NGSA.

My ambition is to provide an even larger share in the upcoming program. As an addition to the conventional engine, we have entered into an agreement with Airbus to develop the flying fuel cell.

Due to this, we will be an enabler for our client to emission-free flying in the future. Given the significant improved free cash flow generation in 2025 and our planning for the next years, we are committed to focus on shareholder value by increasing the dividend by 64% from €2.20 to €3.60 in 2025, representing a payout ratio of 20%.

We are on our way to reach our 40% payout ration target. Let's have a look on the next slide.

Let me walk you through our major achievements in 2025, starting with an overview of our key financial results. In 2025, we delivered on our financial guidance and are pleased to report that the strongest performance in MTU's history has been reached.

Revenue reached €8.7 billion. EBIT increased to €1.35 billion, resulting in a very strong margin of 15.5%.

Free cash flow rose to €378 million, also a new all-time high despite the financial impact of the GTF fleet management plan. Based on this performance, we will propose a dividend of €3.60 per share to the AGM, representing an increase of 64% year-on-year.

In addition, we will present our 2026 guidance today and an important next step on our way to achieve our 2030 ambition. Let's take a look at the market environment in general.

In 2025, our industry continued to gain momentum. Demand again exceeded available capacity, and despite persistent supply chain challenges and a more uncertain macro environment, airlines were highly resilient.

Passenger traffic grew by 5.2% and cargo volumes by 3.1%, reaffirming the sector's strong fundamentals. This performance came despite headwinds from US tariffs and a weaker US dollar, a factor we managed very successfully.

The outlook remains positive. For 2026, IATA expects RPK growth of 4.9% and cargo traffic to rise by 2.6%, both consistent with long-term structural trends.

Robust passenger demand, high-value cargo flows, and expanding global e-commerce continue to support the industry while limited aircraft availability keeps utilization and load factors at an elevated level. This environment plays directly to MTU's strengths.

Our supply chain is built to support customers on both OEM deliveries and the aftermarket, positioning us well to capture ongoing demand. Overall, the market indicators are fully in line with our Plan 2030.

Our current order book stands at $29.5 billion, which technically means we are sold out for the next 3 years. To sum this up, MTU is exceptionally well-positioned to benefit from market dynamics in 2026 and beyond.

Let's have a look at the commercial OEM side of our business. In 2025, demand for new commercial engines remained exceptionally strong.

We recorded more than $2 billion in new orders driven by the GTF, GEnx, and GE9X programs. For the GTF alone, customers placed orders and committed for more than 1,500 engines.

And 2026 also started on a solid note for the GTF. VietJet selected the PW1100 to power 44 A320neo family aircraft.

Customer confidence in the GTF remains high. With commitments for more than 13,000 GTF engines, the order book is now roughly twice the size of the active V2500 fleet.

The strong position of the GTF is visible for the program after just 10 years in service. Since 2016, the GTF family has accumulated over 50 million flight hours on more than 2,600 aircraft, safely carrying more than 1.7 billion passengers.

Its fuel efficiency has enabled airlines to save more than 2.8 billion gallons of fuel. The journey continues with the next major milestone, the entry into service of the GTF Advantage later this year, an engine that provides even better performance metrics and will carry this success even further.

On the customer side of the GTF program, the fleet management plan continues to make solid progress in line with our expectations. Turnaround times are improving.

Material availability is stabilizing. With RTX reporting significantly higher MRO output and airlines confirming an easing of the AOG cases, we expect the situation to continue to improve throughout 2026.

Compensation payments remain on track. We contributed by roughly $360 million in 2025 and expect the remainder of the payments to be settled in the current year.

Looking ahead, we continue to invest in the future of propulsion. In November, we reaffirmed our commitment with our partners, Pratt & Whitney and JAEC, to evolve the technologies for engines for the next generation of commercial aircraft.

This partnership, which is now in place for more than 4 decades, will allow us to deliver even higher efficiency, lower emissions, and long-term competitiveness in the future. In short, MTU is taking advantage of the strong demand and is ready to deliver on our customer needs and is set for a strong and successful future.

Let's have a look at the military OEM business. Over the past 2 years, we have seen strong order momentum for the Eurofighter engine program.

The core nations, Spain, Italy, and Germany, together with export customer Turkey, placed engine orders for more than 80 Eurofighter aircraft. This clearly demonstrates the continued relevance of the program for Europe's defense capabilities.

In the United States, demand for the heavy-lift helicopter remains high. The US Marine Corps has ordered an additional 99 units.

MTU holds an 18% share of the T408 engine program powering this platform, and we continue to benefit from the program's production ramp-up. At the same time, our OEM business for the TP400 is secured until 2029, with additional export opportunities offering meaningful upside as the A400M continues to attract international interest.

Looking ahead at the future of military propulsion in Europe, we have joined forces with Safran and Avio Aero to develop a potential next-generation helicopter engine. This partnership positions us well to support future European defense platforms with advanced propulsion technologies.

While recent headlines around the FCAS program have been mixed, we remain confident that the partner nations will find a constructive way forward. It is essential for Europe's long-term defense sovereignty to develop their own military products, and MTU is fully committed to do this.

In short, through our programs, partnerships, and longstanding expertise, MTU contributes meaningfully to Europe's long-term defense readiness. Now we come to the commercial MRO side on the next page.

Here we are continuing to invest in both capacity and the scope of our product portfolio, strengthening our global footprint and supporting the ramp-up across all major engine programs. In Poland, EME Aero has added a second test cell, enabling the site to execute 500 GTF shop visits per year from 2028 onwards, an important expansion of our European GTF capabilities.

In China, we opened our second MRO shop, initially focused purely on GTF engines, and we delivered the first overhauled engines just months after the inauguration. Together with this, our first shop in MTU Maintenance Zhuhai, the site has now capacity for more than 700 shop visits annually, creating a major capacity hub in one of the world's fastest-growing aviation markets.

In North America, we enlarged our Fort Worth portfolio to include the LEAP and the GEnx later on and will invest further to transform the site from an on-site service center into a full disassembly, assembly, and testing facility, significantly strengthening our market position in North America. At MTU Maintenance in Berlin, we introduced full MRO capability for the PW800 and are about to increase our industrial gas turbine capacity by around 30%, supported by targeted investments, including a new IGT hall already under construction.

In the broader IGT segment, we have deepened our collaboration with GE Aerospace to expand activities in the marine sector, opening even additional market opportunities. Taken together, these initiatives significantly enhance MTU's global MRO network and technical capabilities.

As we execute this expansion, our focus remains clear: supporting the ramp-up and enabling sustainable, profitable growth. On the technology side, we reached important milestones in developing further propulsion concepts.

We are proud that GTF Advantage has received both FAA and EASA certification, positioning it for the market entry in 2026. Aircraft certification is expected soon.

With higher thrust, improved fuel efficiency, and enhanced durability, the engine is particularly well-suited for the larger aircraft of the A320neo family. In addition, RTX announced the introduction of a hot section plus retrofit package, enabling to benefit from 90% to 95% of the durability improvements on the GTF Advantage.

As announced earlier, our IAE consortium publicly reaffirmed its commitment to advancing the GTF architecture as the foundation for the next-generation engines. We are incorporating all learnings from the first generation of GTF engines, design, execution, as well as fleet experience.

From today's point of view, the design of future engines will definitely be geared. Building on these advancements in our current product portfolio, we are simultaneously accelerating in the development of next-generation propulsion technologies.

In June, we signed a memorandum of understanding with Airbus to jointly advance hydrogen fuel cell propulsion. Within our own technology program, the flying fuel cell, we have made significant progress.

The design has been finalized, early tests have been successfully passed, and we have commissioned a dedicated flying fuel cell test bed in our Munich site. This marks a major step towards an extensive test campaign for this technology.

All of this demonstrates one thing very clearly: we are not only advancing propulsion technology, we are actively shaping what comes next. MTU is preparing the future of aviation step-by-step and with a very clear, long-term vision.

Over the past year, we have made strong progress in reducing CO2 emissions across our production sites. Here in Munich, for example, our new geothermal plant has been operating since December 2025 and will cover around 80% of our heating needs entirely CO2-free.

The 71 degrees Celsius thermal water is sourced from a depth of more than 2,100 meters and will provide clean, reliable heat well into the future. Looking ahead, our ambition is clear: reduce CO2 emissions across all MTU sites by 63% by 2035 compared with 2024.

Each location contributes through its own targeted measures. We are driving this ambition through three main levers: improving energy efficiency, expanding on-site renewable energy generation, and, of course, purchasing renewable energy, such as green gas and green electricity.

Together, these actions ensure that we are progressing credibly towards sustainable decarbonization. In addition to our operational success and progress, our sustainability performance is also externally recognized.

MTU has once again received the silver medal in the EcoVadis sustainability rating. Taken together, these developments demonstrate that we are on a strong and credible path towards significantly decarbonization.

With that one, I will hand over to Katja, and she will walk you through the numbers.

Thank you, Johannes, and welcome from my side as well. Let me begin my part by briefly putting our results into perspective.

For 2025, we achieved our several-times-upgraded guidance in all financial KPIs. These results are new record highs for MTU and mark the next milestone on our ongoing growth path.

Revenues of €8.7 billion were in line with our updated guidance, clearly exceeding our initial guidance despite a weaker US dollar, a headwind we were able to offset through strong operational performance. Adjusted EBIT increased 29% to €1.35 billion, showing a strong margin of 15.5%.

This represents a significant step-up compared to our expectations. Adjusted net income roughly followed the EBIT growth as expected and grew 27% to €968 million.

Free cash flow of €378 million came in significantly better than originally anticipated and in line with the guidance from October 2025. This marks another record level in recent years, even while carrying the burden of the GTF fleet management program, and it proves our progress in improving our cash conversion.

Let's now take a closer look at some details behind this outstanding performance. Group revenues increased by 16% to €8.7 billion.

In US dollar terms, revenues were up 21%. This strong performance was driven by our commercial OEM business, which benefited from a favorable mix in engine deliveries, including a higher share of spare and lease engines, as well as the expected growth in spare parts revenues.

We also achieved strong sales growth in the MRO segment, supported by continued momentum across our activities there. Adjusted EBIT rose overproportionally by 29% to €1.3 billion, resulting in a margin of 15.5%.

The excellent result was driven by the above-mentioned business mix effects. Adjusted net income grew by 27% to €968 million.

Growth was influenced by higher interest expenses associated with new financial instruments. The higher earnings translated into a strong free cash flow of €378 million, an all-time high for MTU.

This level exceeds the previous peaks of 2019 and 2023, even though the expected impacts from the GTF fleet management plan were fully reflected. Airline compensation payments amounted to roughly $360 million.

Let's now move on to the business segments. Let me begin with the OEM segment.

In Q4 2025, total OEM revenues increased by 11% to €817 million. Therein, commercial OEM revenues were up 13%, reaching €621 million.

In Q4, organic growth in commercial OE in US dollar sales increased by a low-to-mid-teens percentage. As anticipated, Q4 OE sales included a higher share of installed engines.

Organic spare parts sales in Q4 in US dollar grew in the low-to-mid-teens range. Drivers were both narrowbody and widebody engine platforms.

Military revenues increased by 6% in Q4, marking the strongest quarter of the year. However, delays in the supply of parts and modules required for the planned deliveries limited the level of growth we anticipated, resulting in a stable revenue versus 2025.

Adjusted EBIT for the quarter improved by 39% to €234 million, resulting in a margin of 28.6%. The margin development was as expected, reflecting the higher share of installed engines as well as lower-than-expected military revenues.

For the full year, total OEM revenues increased by 14% to €2.9 billion. Commercial OEM revenues grew by 18%, reaching €2.3 billion.

Organic commercial OE sales in US dollars were up around 10% for the full year 2025, a bit below our mid-teens guidance, as the delivery plans within our various partnerships did not materialize as expected. Organic spare parts US dollar sales for full-year 2025 increased in the low teens range.

Drivers were both narrowbody and mature widebody platforms. Overall, this performance drove adjusted EBIT up by 43% for the full year to €873 million, delivering an excellent margin of 30.4%, clearly exceeding our expectations for the year.

Let us now move on to the commercial MRO business. Commercial MRO revenues in the fourth quarter of 2025 increased by 11% to €1.7 billion, making it the strongest quarter of the year.

In US dollars, Q4 revenues were up 22%. Key revenue drivers in the fourth quarter were the GTF, the CF6, and the MLS leasing and asset management business.

Revenues from CFM56, CF34, and CF6 platforms also increased compared to Q3 2025. The GTF MRO revenue share in the quarter was around 41%.

In Q4, adjusted EBIT decreased by 11% to €123 million, resulting in a margin of 7.4%. The margin reflected the higher share of GTF MRO revenues as well as ramp-up costs at MTU Fort Worth.

For the full year 2025, commercial revenues rose by 18% to €5.96 billion. In US dollar terms, revenues increased 23%, significantly exceeding our full-year guidance of mid-to-high-teens growth.

Revenue growth in 2025 was broadly spread. The GTF delivered strong performance, while the CF6-80, GE90, V2500, and our IGT business also recorded solid growth.

In addition, MLS leasing and asset management delivered the expected operational performance, further supporting overall results. GTF MRO accounted for 40% of total MRO revenues, in line with our full-year expectations.

Revenue recognition accelerated in the second half of the year, driven by broader work scopes, improved material availability, and shorter turnaround times. Adjusted MRO EBIT increased by 9% to €478 million, resulting in a margin of 8%.

Margin development was mainly influenced by the GTF MRO mix, ramp-up costs for the LEAP MRO at MTU Fort Worth, partly compensated from at-equity contributions, particularly from MTU Zhuhai. Overall, the MRO business delivered a strong performance in 2025.

Let me now give you an update on our hedge book. As you can see, we have further increased our hedge coverage over the past months since the release of our 9-month results.

For 2026, we have now hedged around 80% of our net US dollar exposure at an average hedge rate of $1.13. Looking further ahead, we continue to build our hedge position at higher average hedge rates, reflecting the currently weaker US dollar.

Please keep in mind that the purpose of our hedging strategy is to reduce the impact of US dollar exchange rate fluctuations on our EBIT. A 5-cent movement in the US dollar exchange rate would translate into an EBIT effect of roughly €20 million.

Overall, our hedge book secures a high degree of visibility and stability for 2026, giving us a solid foundation for the year ahead. Before moving to the guidance, let us have a look on our progress on the finance side.

Our net debt currently stands at around €1.1 billion, resulting in a net debt to EBITDA ratio of below 1. That is a very solid level, fully in line with our mid-term guidance of a leverage ratio of 0.5 to 1.5, and gives us the financial headroom we need to execute on our priorities.

Our strong balance sheet is also reflected in the credit ratings from Moody's and Fitch, both of which assigned an investment-grade rating to MTU. Moody's upgraded its rating from Baa3 to Baa2 with a stable outlook in August 2025, while Fitch confirmed its BBB rating with a stable outlook in September last year.

At the beginning of January, we issued a new convertible bond with a volume of €600 million. We used the proceeds to repurchase our outstanding €500 million convertible bond that would have been due in July 2027.

This transaction allowed us to reduce the potential dilution for our shareholders by around 300,000 shares, a clear and tangible benefit. As already stated by Johannes earlier, we intend to propose a dividend of €3.60 per share at our Annual General Meeting in May 2026.

This represents an increase of €1.40 or by 64% compared with last year and corresponds to a dividend payout ratio of 20%. This is a clear signal of our gradual return to our targeted long-term dividend payout ratio of 40%, a ratio we temporarily suspended due to the GTF fleet management plan.

All in all, these measures strengthen the financial flexibility and solid balance sheet that underpin MTU's long-term growth strategy. Let's now come to the key drivers for our guidance 2026.

As Johannes already mentioned, the market environment remains highly favorable for the aviation industry, and MTU is well-positioned to benefit from this momentum. Overall, we expect engine deliveries to increase in 2026, with a higher share of installed engines.

For the GTF, we will support these deliveries in line with our market share, contributing to the production ramp-up while ensuring sufficient spare engine availability for our airline customers. Following RTX's announcement, demand for spare and lease engines remains strong.

On the GTF, we expect this to stay broadly flat in absolute terms compared with 2025. For the GEnx, we expect higher volumes driven by Boeing's plans to increase 787 production from currently 8 aircrafts per month to around 10 in 2026.

Deliveries of the first GE9X are targeted for this year, although the official entry into service of the first B777 has been delayed to 2027. Putting this together, we expect organic US dollar OE revenues to grow in the mid-to-high-teens range in 2026.

This reflects the current expectations with respect to mix and pricing. Commercial spare parts are expected to remain a strong revenue contributor.

The V2500 should be up, supported by higher utilization of the A320ceo fleet and increased material demand and work scopes in shop visits. We expect continued growth in GTF spare parts driven by the GTF fleet management plan as well as ongoing durability improvements.

Mature engine programs are expected to remain broadly stable or show a slight decline. Overall, this points to low-to-mid-teens organic spare parts revenues growth in 2026.

The military business will benefit from the strong order momentum for the EJ200, leading to higher deliveries. In addition, we expect a continued ramp-up in T408 production, which powers the CH-53K heavy-lift helicopter used by the US Marines.

The development contract for the next-generation fighter engine runs until September this year, and we remain optimistic that the governments will find a solution for the FCAS program. The phaseout of the German Tornado fleet will result in a gradual decline in RB199 revenues over the coming years.

Due to some supply chain disruptions in 2025, we expect certain spillover effects into 2026. All together, this should result in an accelerated revenue growth in the mid-teens range.

Commercial MRO will continue to benefit from strong air traffic, which drives high demand for mature engine programs in our independent MRO business. We also expect rising GE90 MRO volumes from our freighter customers.

Our MLS leasing and asset management business will continue its growth trajectory. In 2026, we generated roughly €600 million in revenues, marking steady progress towards our €1 billion revenue target for 2030.

For GTF MRO, we expect a revenue share of 40% to 45% in 2026. Key drivers will be the growing fleet in service, ongoing execution of the GTF fleet management plan, and further durability improvements.

Together, these factors should translate into low-to-mid-teens US dollar revenue growth in MRO. Across all business segments, we expect continued growth in 2026, another important step towards achieving our mid-term revenue target of €13 to €14 billion.

The business drivers I've just outlined, with growth across all our segments, translate into expected total group revenues in the range of €9.2 to €9.7 billion, based on a US dollar exchange rate of $1.20. Adjusted EBIT is expected to come in between €1.35 and €1.45 billion, above the 2025 level.

Positive contributions will come from continued strong spare engine sales, partially offset by a higher share of installed engines. The spare parts business and the military segment will also contribute and support absolute EBIT expansion.

The 40% to 45% GTF MRO share will have some impact, as will our investments in Fort Worth and the ramp-up of MTU Maintenance JINMAN. At the same time, the ongoing strength of our independent MRO business and further growth in our MLS leasing and asset management activities will drive the margin.

Overall, the group margin guidance for 2026 remains well within the corridor of our mid-term guidance. For net income adjusted, we expect growth broadly in line with adjusted EBIT.

With regards to our cash conversion rate, we expect further improvement to 45% to 55%, mainly driven by lower GTF AOG compensation payments and stronger earnings. As you can see, we are well on track to deliver our 2030 ambition across all key performance indicators.

Our 2026 revenue outlook of €9.2 to €9.7 billion is broadly in line with the revenue CAGR implied by our 2030 ambition. Our 2026 adjusted EBIT target of €1.35 to €1.45 billion also implies a margin within our guided 2030 corridor of 14.5% to 15.5%.

Our cash conversion rate is set to improve significantly, from 39% in 2025 to 45% to 55% in 2026, representing another step towards our 2030 ambition of reaching a high double-digit level. As our mid-term 2030 ambition remains unchanged.

Since the future development of the US dollar exchange rate cannot be predicted, we've included our well-known US dollar sensitivity, noting that our 2030 ambition is based on an exchange rate assumption of $1.10. This concludes my presentation, and I would now like to hand over to Johannes for the closing remarks.

Thank you, Katja. Let me close our presentation with some key takeaways for you.

MTU has delivered an excellence performance in 2025 despite all the headwinds that we were facing and have been reaching new record highs. The GTF fleet management plan is on track financially and technically, and the financial burden will start to ease.

We continue to execute on our technology roadmap to support our customers worldwide on their ambitions. The market environment remains positive for the entire industry, and MTU is extremely well-positioned to benefit from this growth all around the world.

We have provided a strong guidance for 2026, fully aligned with our growth plan towards our mid-term target for 2030. This will translate also into improved free cash flow, allowing us to even further strengthen shareholder value.

MTU continues to represent a highly attractive investment with exposure to long-term, profitable growth. Thank you for your attention so far, and now we are happy to take your questions.

Yes, thank you. Good morning or good afternoon, I think, for you, Johannes and Katja.

Can I ask one question of each of you, please? Johannes, I think you've been in the role now maybe 6 to 8 months, I think.

I'm just curious whether you see any real scope for operational improvement. I know MTU is a well-run company already, but in particular, I'm thinking about the FX headwind that the company could face and whether there's anything operationally you could do to offset that.

Then, Katja, for you, thanks for the comments on the free cash flow bridge to '26. You talked about lower GTF compensation payments.

Just could you talk about some of the other moving parts, please? I think some of the feedback I've had from investors was they thought it could be a little bit better than your guidance in 2026.

Maybe just some of the puts and takes on the cash flow would be helpful. Thank you.

Improvements of operations are, of course, a topic that we're dealing with every time. I think the expansions that we talked about, especially in 2025, also showed already that we have a really steep learning curve on existing facilities and building up new facilities with even better processes, combining what we have learned in other parts.

That our operational performance is, in at least some area, second to none proves with the GTF. At the moment, we are best in class in the network with the shortest turnaround times, and that's, of course, what we also want to provide as a service level for our customers in the other sites.

That is what we are working on. It's a lot of work, of course, that is done at the different facilities, but I see progress there and a strong willingness of our colleagues to improve that even further.

With the inductions coming in, of course, that also helps, because if you have volume, the repetitiveness is increasing, and by that, the learning curve is even fostered further.

David, and then I would take over here to talk about the cash flow topic. Overall, despite the fact that we do see less impact from the GTF fleet management plan on the AOG side, with approximately expected $250 million still impacting our free cash flow for 2026, we're also facing still an increase in the GTF receivables for the pre-financed shop visits.

As you remember, we also elaborated on that part during our 9-month call, stating that we will see further increase in those pre-financed shop visit receivables over the next couple of years before we start to see that turning rather later in the end of this decade. Another topic that is a headwind, to say, for our free cash flow is the ramp-up of our facility in Fort Worth in Texas, where we expect to see a high double-digit impact on our free cash flow building up the inventory to operate the facility.

Thanks, it's very clear. Thank you.

You're welcome.

Yes, good afternoon. Thank you for taking my question.

I had actually two. The first one is on the OE commercial guidance in 2026.

Your guidance, could you detail in terms of volumes the growth in GEnx and in GTF, because it seems to be a higher number than what Airbus has been guiding us to? You mentioned several times IGT on this call.

Could you tell us what is the contribution both to OE and MRO at this point in time, and where do you see this going forward in terms of contributing to earnings and sales? Thank you.

Hello, Christophe. With regards to the OE commercial guidance, there are a couple of moving parts, to say, in this OE commercial guidance, and it's not just the GTF, yeah?

We have the GTF, we have the GEnx that is growing, we do see first deliveries in the GE9X that is moving. These are figures, but also some other smaller Pratt & Whitney Canada engines will contribute to the growth, and that's why our figure is more a mix of the different programs that we are in compared to what Pratt has communicated.

The IGT part is part of our MRO segment, this is where you can find that. The expectation is that this is a very profitable business that is continuing to grow.

We're investing in the Berlin plant to be able to support the growth and also the customer demand that is out there, which is partially driven by a law in Germany, for example. There we do see more business coming around the corner, but also internationally due to the peaks in power supply and the increase in the artificial intelligence area.

There's more need for short-term peak power supply, and therefore, this is a business expansion that we do expect.

Thank you very much.

Thanks so much. Good morning.

I just wanted to follow up on the last question on your guidance versus Airbus and, in particular, those comments that Airbus made on the GTF. I was wondering if you could elaborate on this situation and what is causing this disagreement between you and your customer here, or at least Pratt & Whitney's customer.

Then secondly, on the V2500, I was wondering if you could give us your latest thoughts on the trajectory for shop visits on this engine and also work scope as you work through 2026. Thank you.

Thanks. The discussions on the deliveries between Pratt & Whitney and Airbus are still ongoing.

All of you read that Guillaume commented on it. Obviously, we have not come to a conclusion so far, but the two partners are negotiating, and so that's what I think we will have to wait for.

I'm pretty sure that they will find a solution, the orders, of course, have been placed, and we in the consortium have discussed what we can deliver as a total. Now Pratt is discussing with Airbus how we deal with this in the relationship to Airbus and our other customers.

That's from our side all we can comment on that one. On the V2500, I think the number speaks for itself.

We have around 15%, roughly 15%, that have not even seen the first shop visit. We have another 35% in operation that has not seen the second shop visit.

That means half of the installed fleet is well into the lifespan of the engine itself. From that perspective, we still plan with an induction in the MRO sites for the V2500 to be ongoing for quite a while.

This is something with the growth of the overall aviation market that we discussed earlier on, I think something that is shared by a lot of our colleagues and market participants. That's why we are also in the MRO shops still preparing for further inductions of the V2500 for the coming years.

Did that answer the question?

Just on the work scope, sorry.

The further you go down the road, the work scopes get heavier, of course. That means the second work scope is normally heavier than the first one, and so on.

That's, of course, something that is helpful for the MRO business, and that will drive our numbers and also the work scopes inside the shops, and that is, I think, the normal behavior that we have seen on engines also for many years.

That's great. Thank you very much.

Thanks very much. Yes, Ian Douglas-Pennant at UBS.

The first is on cash flow, please. You mentioned pre-finance shop visits, which I think is the imbalance payments line item in your balance sheet.

Could you just help us size how you see that effect? Firstly, just remind us the 2025 impact on cash flow from that.

Then also, could you just help us think about sizing that in 2026, 2027 as well, please? Either qualitatively or quantitatively is useful.

My second question is on the aeroderivative or the IGT business. Are you worried or thinking about here the possibility of increased competition from aircraft engines being converted to be used as aeroderivatives, as we've seen one of your peers talking about?

Have you looked at doing that yourself, given that you have almost unrivaled expertise here? Thank you.

I think I take the first part, Ian. We don't specifically provide numbers on the growth of our aftermarket compensation payments.

What I can say is that we expect that to continue to grow year-over-year and therefore still have an impact on our cash flow development over the next couple of years. We expect that to turn rather late, yeah, in the decade.

You can see the position itself under other financial assets in our balance sheet, yeah. These are receivables and no compensation payments, yeah?

Currently, we're still building up those receivables for the pre-finance shop visits. Sorry, I cannot share any details on the coming years.

I take the second part. I'm pretty sure you relate to the FT5 power announcement some time back.

Of course, the conversion of aviation engines into power generation units could be an attractive adjacent business for MTU. It's for the LM2500, it's CF6-6 and the 6000 and the 6-80.

That's a business we are in for already a long time and have even deepened our collaboration with GE Aerospace. That's something that we are of course seeing good market opportunities into.

That said, the attractiveness of a conversion into power generation ultimately also depends on the scale of the addressable market and availability of feedstock for these engines, of course. We certainly have a potential that we are observing, and as we are active on both sides, I think we have also a good visibility of what is more attractive for us.

That path we will then follow with the customer demand being on that side.

Yes, good afternoon, Johannes and Katja. If I could start with actually a follow-up on your comments on inventories.

First, could you comment on the driver for the growth in 2025, and in particular in Q4, where typically you actually unload a little bit of those inventories? Where should we assume this stabilizes going forward in terms of days of sales, please?

The second question is on OE sales. Could you share maybe what was the impact of mix on top of the 10% organic growth that you report?

On your 2026 guide, did I understand well that your current guide for mid-to-high teen actually also includes the impact for mix, or does that come on top? Thank you.

Let me start with the inventory question first. You remember that I said, for example, in the military business, we were not able to fulfill all the deliveries that we originally anticipated for the quarter, despite the fact that it was the strongest quarter in deliveries.

That also had us stay with more inventories than originally anticipated, let me say it like this. I'm sorry, I didn't get the second question entirely about the mix in the guidance, Chloe, I'm sorry.

In 2025, you talk about 10% organic growth in OE, but obviously the spares mix and the overall pricing mix, I guess, is additive to that. If you could maybe share just if you could scale this and how it impacts 2026 as well?

As our organic growth rates does not account for any changes on pricing or on share between spare and installed engines overall. What we've done now for 2026 is that 2026 reflects the current expectation with regards to mix and pricing, and this is what we've laid out.

Okay. If I can just follow up on the inventory question.

You said that in 2026, you expect a high double-digit headwind from working capital from the Fort Worth ramp, I guess,

but

overall for inventory, is that the total amount that we should assume, or is it going to be a higher headwind year-on-year?

That was a specific headwind that I would like to point out because we never quantified the amount that specifically before, so that was why I mentioned the MTU Fort Worth inventory step-up. Overall, as that with the growth of the business, we will also face some increase on the inventory side, despite the fact that we do our very best to manage our inventories as efficiently as we can.

Perfect. Thank you very much.

hi, it's Rory from OxCAP. Thank you for taking my questions.

I just wanted to come back to that point on spares, and I was hoping you'd be able to give a number for spare engines actually shipped in Q4 and what that was in the first 9 months of 2025. Then the second question, in terms of the MRO segment and the guide for the GTF share there, 40% to 45% in 2026, is it possible to get any sort of sensitivity on margins, whether it comes in at 40% versus 45%, some guide rails around that?

Then my third and final question, it's just on the GE9X, you've obviously called that out. It's delayed.

Entry into service is 2027 now. How does that actually impact your financial statements, if you could just frame that for us financially?

That would be really helpful. Thank you.

With regards to the split between spare and installed engines, you know that as this information are also not disclosed by all partners in the network, there is also no way that we will disclose those details. I think what is clear when you look at the fourth quarter of last year, we said that there was a higher share of installed engines and that had, for sure, an impact on the margin of the OEM segment.

The MRO guide for 2026, there's no way we break down the 40% to 45%, but what you need to see is that the GTF, just from a pure construction of the contracts, is rather dilutive to the margin the higher the share is. If we have a higher share on the GTF in our revenues, there is an impact on the margin side.

For the GE9X, I think there are two important topics to keep in mind. The GE9X delivery was already postponed a couple of times, and we had built up inventory in our facilities to support the original ramp-up, and that still is with us to the largest extent, yeah.

That's very clear. Thank you very much.

Good afternoon, both, and thanks for taking the questions. Just a couple of questions for me, please.

Just to follow up on the Fort Worth point. You talked about the impact of working capital from the inventory ramp-up.

I think the first induction of LEAP at Fort Worth is expected at the end of this year. As we go beyond that to '27, should we expect that to unwind and become a bit of a tailwind to cash rather than a headwind?

Just thinking through how Fort Worth starts to contribute would be really helpful. Then just secondly on R&D, how do you see that evolving next year and beyond?

That would be really helpful. Thank you.

With regards to Fort Worth, first of all, let me correct one assumption. The first induction of an engine is foreseen already for July of this year.

The first induction already comes with a headwind, with a build-up in inventory. As we will continue to ramp up that facility over the next couple of years until 2030, you can expect further impacts coming from this ramp-up on the inventory side.

We expect a similar impact year-over-year, more or less. That's a big topic.

On the R&D side for 2026, that is a bit of a two to answer question. There is the capitalized R&D, we rather expect to decrease during the course of the next year compared to the 2025 level.

The self-financed R&D we expect to maybe increase a little bit compared to prior years level, but that is more or less what we do see. I think it's clear, as we continue to follow our technology agenda, there's more development work to be done in that area.

If you look at the mid-term ambition that we have, it's rather a decrease in R&D expected until 2030 overall.

Very helpful. Thank you very much.

Good afternoon. You stated in the section on military OEM that a constructive way forward on the FCAS project is expected.

I wonder if you could just elaborate a bit on that. What do you see as being a constructive way forward?

Presumably, you are thinking about contingencies for if the program, as currently configured, does not continue past the end of Q3. What would you do with all those engineers?

I take that one. As you mentioned, the Phase 1B is ongoing until end of September this year, and we are delivering together with our partners, Safran and ITP, there according to the time plan and according to what the deliverables are.

That means in our pillar, Pillar 2 in the entire FCAS program, we have a very stable and good working relationship that we are also willing to continue, whatever the solution the politicians in Europe might take. That's something where we have aligned.

The question is now, what do the politicians decide? That's not in our hand.

I think we need guidance from politics which direction they want to go, how the system should look like, and then we as an industry, and then in our share with the engine, of course, can join forces. Depending on these decisions, the consortium stays as it is for Pillar 2, or it might need to be adjusted.

That's something for us only now to guess. That's nothing that we can elaborate on in detail, as we don't know these facts, and we are waiting for a decision.

What I'm really confident on that at least the German politicians, where I'm in contact with, they have understood that a decision has to be taken soon, and there is a strong will to do so. Of course, it's a European program, and that's why several governments need to come together and make a decision, and that's what we are waiting for.

Thank you very much.

Thank you. I hope you guys are well.

First question for me. You've guided for €1.35 to €1.45 from an EBIT perspective.

My interpretation of your comments is that it's the spare engine ratio, which is somewhat of the swing factor as to why you would be towards the bottom end or the upper end. Is that a fair assessment, or is there something else going on that could move through the year?

Is there any color of kind of what drives you to the top or the bottom of that range? Secondly, obviously spare engine ratio, appreciate you're not going to give me any numbers, but qualitatively, how should we be thinking about that into 2027 and potentially beyond?

Is there any color that you can provide around that, because I think my view in particular is it is clearly elevated right now, understanding how long it's going to remain at an elevated level. Then third question, obviously Airbus very unhappy based on the comments that they made on their conference call.

Can you talk a little bit through, what are the bottlenecks? What has driven this shift over the past couple of months?

Are there new bottlenecks in production that we need to be thinking of? Is it a stickier AOG situation?

Just can you help frame a little bit as to what has driven the need to shift the deliveries from Airbus over the past couple of months? Thank you.

Maybe I start with the financial questions, and then I hand over to Johannes for the Airbus comments. Overall, what we have pointed out on page 20 of our presentation is that there are a couple of drivers that will influence our margin also on the commercial OE side.

We will see an increase in new engine deliveries overall and a growing share of installed engines. Just to really remind you once again, it's not only all about the GTF, yeah?

There are also a lot of other engines that we supply, and also in there, we do have spare and installed engines that we do supply. The GTF definitely is a driver, but also the B787, the GEnx engine, or also the B777 that will start will have an influence.

It's not only the topic of the GTF spare engine ratio or total number that lifts that. When you look at the overall development, I think it's clear that we're currently operating at an elevated level with regards to the spare and lease engines in the GTF program.

Also there, I would like to make one comment. In the newer engine programs, we do expect to see an elevated level for a much longer time moving forward because of the fact that those engines overall are being operated under much harsher conditions than engines had been operated in the past.

That's not only true for the PW11 or for the GTF, but it's also true for other engine programs. Overall, we do not expect to move back to a historic level of maybe 10% of spare and lease engines in the market.

We rather expect that to remain elevated. Nevertheless, the current levels will not be sustainable for the longer future.

For this year, and this is also a comment that we have made, in absolute terms, we expect the delivery of spare and lease engines to be pretty much in line with what we've seen in 2025. Due to the increase in installed, there will be a reduction in the overall ratio.

Maybe, Johannes, with that, I hand over to the Airbus part of the question.

Of course. Of course, Guillaume obviously is not happy with the actual status of the negotiations.

As a matter of fact, there is no new bottleneck, nothing at all. We have, I think, proven that, especially Q4 last year, that we have made progress on the MRO side and the throughput, turnaround times, in order to decrease the AOG situation for the airlines.

Then, all things come together. There is a mixture of requests from Airbus what they want to get delivered.

As GTF is for the A220, the sole engine, and for the A320, it's the mixture between LEAP and the GTF. In that overall setup, of course, there needs to be a solution that Pratt is negotiating with Airbus.

We can't further comment on that one. We are also not familiar with all the details that are on the table there.

I'm very confident that they will find a solution. Think that Guillaume is not happy was clear message that he sent, and we're aware of that one.

Very clear. Thank you both.

Appreciate it.

Yes, thank you for taking my question. Most have been answered, but maybe a few more color, please, on the turnaround time.

You said there was some improvement in 2025, and you are now best in class. What is the turnaround time now, and how much more room for improvement do you see in the years to come?

Then your competitor mentioned that, given the lower retirement rate, the number of shop visits should stay pretty flat up to 2028 before starting their descent. Do you see the same phenomenon for the V2500, or do you see a higher retirement rate coming now?

Okay. V25.

Just a second. Okay.

On the turnaround times, that's always a mixture of different numbers, of course. The work scopes are different depending on how long the engines have been run, in which environment they have been operated.

The average turn time has come down. Material availability, supply chain issues have been reduced or at least calmed down.

That's, of course, helpful for the turnaround time in the shops. Within the network, the partners that are performing MRO, we are sharing this information, so that's nothing that we keep for us.

Of course, we want to support our customers to the best possible. MTU Hanover, especially, has contributed last year a lot there because turnaround times and developments have developed in a very nice way to reduce that.

On the V2500, we still see quite a big portion of engines coming in. 15% are still awaiting first shop visit, 35% second, and then, of course, the remaining 50% are third or even further.

That's something, of course, that will go on for quite a while. We have quite heavy workload in our shops with that, and with the increased work scopes, life-limited parts coming out of the engine, of course, due to the later shop visits, that's something that is positive for the development of our business, an engine that we know very well and where we have great capabilities also on the repair side.

That's why this will remain for the foreseeable time quite good and stable business for us.

Thank you.

Good afternoon. Thank you for taking my questions.

In the military business, can you just provide a bit more detail around the supply chain issues that you are experiencing and your confidence that this will be less of an issue this year? The second question is on your expectations for when the first in-service GTF engines will receive the GTF hot section plus retrofit package.

When do you think you will be able to complete the retrofit of the whole fleet? Thank you.

First was hot section plus?

The military business, issues with the supply chain. Military.

In the supply chain,

yeah. Okay.

Good. As all military programs run into consortiums, and of course, that also has seen the difficulties that we are facing on the commercial side.

Volumes are much smaller, so that means the impact of single disturbances is a bit bigger. That's something that is calming down as the overall supply chain is calming down, and we have seen a slight drag that led to the slightly reduced numbers, but we are also confident that we can compensate on that one this year and the years after.

We don't see any real problems that are remaining and hindering us from increasing the military side now for the time to come. The hot section plus from Pratt & Whitney is, of course, interesting for the installment in the already delivered engines on the GTF side, and it covers for around 90%, 95% of the durability issues for the existing fleet.

That is, of course, something that will be installed during the course of the normal shop visits. An assumption on how long that takes is a bit difficult, but all customers that opt for this hot section plus thing, we can install it in the normal shop event, and then this comes in.

It's not mandatory, the customer has a choice. That's why any guess on any timeline is difficult, but we're confident that customers will make use of it.

To what extent remains to be seen, and maybe when we have a little more time down the road, then we can elaborate on these numbers.

Thank you.

Yes, thank you. This indeed marks the end of today's call.

Thank you, Johannes. Thank you, Katja, for your presentation, and thank you, all participants, for the interest and the questions.

As usual, for further information and details, reach out to the IR team. Beyond that, have a great day, and, yes, hear you soon.