ITP Aero Announces MRO Revenue Targets

ITP Aero Sets Ambitious MRO Revenue Targets Amid Industry Challenges

ITP Aero has announced a strategic initiative to significantly expand its maintenance, repair, and overhaul (MRO) business, with the goal of aftermarket activities accounting for 20 to 25 percent of total revenues within the next five years. Headquartered in Bilbao, the company is intensifying its focus on the commercial MRO sector, aiming to leverage its established relationships with original equipment manufacturers (OEMs) and broaden its role in servicing commercial engine programs.

Strategic Growth and Investment in MRO Capabilities

Currently, ITP Aero’s revenue composition stands at approximately 70 percent from civil aviation, 15 percent from defense, and 15 percent from MRO. To meet its ambitious target, the company must increase its MRO business fivefold. Alan Jones, executive director of MRO, outlined a comprehensive strategy centered on investments in new technologies, global expansion, and a planned doubling of the workforce. Jones highlighted the commercial aftermarket as the area with the greatest potential returns, noting that ITP Aero is adapting its proven OEM expertise to enhance its component repair services.

A key element of this strategy is the recent opening of an advanced manufacturing and repair laboratory in Bilbao. Staffed by around 100 engineers, this facility is dedicated to developing and industrializing innovative repair processes, which are expected to accelerate the company’s growth in the MRO sector. Jones emphasized the importance of collaboration with OEMs and Tier 1 suppliers to extend ITP Aero’s service capabilities, particularly for new-generation engines such as the CFM International Leap and Pratt & Whitney geared turbofan.

Expansion in the United States and Enhanced Global Footprint

In a move to strengthen its presence in the United States, ITP Aero acquired BP Aero, an engine repair facility based in Irving, Texas, specializing in maintenance, teardowns, and component overhauls for various commercial engines. BP Aero recently expanded its capabilities to include General Electric CF34 engine overhauls, with further investments planned to enhance hospital shop and quick-turn services. Jones indicated that the company intends to intensify its focus on component repairs within BP Aero and is considering the establishment of a third U.S. facility to meet growing demand.

Additionally, ITP Aero plans to invest in its Madrid component repair facility, formerly owned by Rolls-Royce. Since its €1.6 billion ($1.8 billion) acquisition by a Bain Capital-led investor group, the company has gained greater operational autonomy, which has accelerated growth and renewed its emphasis on innovation and sustainability. This independence is enabling ITP Aero to expand its research and development capabilities, with a focus on next-generation aerospace technologies aimed at improving engine efficiency and reducing emissions.

Navigating Industry Challenges with Innovation and Expansion

ITP Aero’s aggressive MRO growth strategy unfolds amid persistent industry challenges, including labor shortages and rising operational costs. These factors have driven competitors to pursue similar expansion and innovation efforts. By investing in technological advancement and global infrastructure, ITP Aero is positioning itself to remain competitive in a rapidly evolving aerospace market, seeking to capitalize on emerging opportunities within the commercial aftermarket sector.