Record Profits for MTU Aero Engines and Price Cut in Honeywell Acquisition

German aircraft engine manufacturer MTU Aero Engines recorded a record financial year, translating into optimistic forecasts for 2026. The company's board decided to pay a record dividend, which was met with an enthusiastic reaction from investors on the Frankfurt stock exchange. Stable demand for engine servicing, driven in part by the recall action for the GTF model, allowed the company to achieve historically high margins in the commercial segment. The aviation sector underwent a rapid transformation after the COVID-19 pandemic, where fuel efficiency and reduction of nitrogen oxide emissions gained key importance, forcing manufacturers like MTU to radically accelerate work on next-generation propulsion. Simultaneously, a significant valuation correction occurred in the mergers and acquisitions market. The London-based group Johnson Matthey agreed to a drastic reduction in the sale price of its catalyst technology division to the American giant Honeywell. The original amount of £1.8 billion was reduced by over a quarter. The reason for the renegotiation was weaker-than-forecast financial results of the unit and delays in the execution of key industrial contracts. Honeywell, an American conglomerate founded in the early 20th century, regularly modernizes its portfolio through acquisitions of technology companies, aiming for dominance in the areas of industrial control and advanced aerospace materials. 26% — price reduction for the sale of Johnson Matthey's division MTU investors joyfully received the news of the profit distribution, while the British market analyzes the impact of Johnson Matthey's reduced valuation on the company's further restructuring strategy. Despite the price cut, both parties to the Honeywell-Johnson Matthey transaction declare their intention to finalize the agreement in the coming months after obtaining necessary regulatory approvals.