German engine manufacturer MTU Aero Engines has announced the acquisition of AeroDesignWorks, a startup specializing in drone and missile propulsion, marking its entry into this rapidly expanding segment. Founded in 2011 as a spin-off from the German Aerospace Center, the company generates approximately €10m in revenue and already has industry giants such as Airbus, Boeing and MBDA as clients.

This transaction is part of a broader diversification strategy toward defense activities, which currently account for less than 10% of MTU's total revenue. The group intends to accelerate the development of this division by leveraging AeroDesignWorks' industrial expertise, particularly to scale up production capacities and design high-performance engines tailored to next-generation military systems.

Historically focused on military aircraft and helicopter engines, MTU is anticipating the shift toward architectures that combine manned aircraft with unmanned aerial vehicles (UAVs). This acquisition allows the company to broaden its portfolio with thermal solutions, complementing its existing operations in electric propulsion, amid a surge in European investment in autonomous defense technologies.