RCS - Deutz AG - DEUTZ posts strong growth despite tough 2025

Deutz AGAnnouncement

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RNS Number : 2460Y  Deutz AG  26 March 2026

 DEUTZ AG / Key word(s): Annual Results

DEUTZ generates growth and achieves one of the highest profits in its recent
 history despite challenging market conditions in 2025

26.03.2026

The issuer is solely responsible for the content of this announcement.

DEUTZ generates growth and achieves one of the highest profits in its recent
 history despite challenging market conditions in 2025

 ·      Strategic transformation pays off: revenue up by almost 13% to
 €2.04 billion and new orders by almost 14%

 ·      Increased profitability driven by new business and positive
 effects from Future Fit cost-cutting program: adjusted EBIT margin in line
 with most recent forecast at 5.5%

 ·      New organizational structure with independent business units for
 achieving the targets set for 2030

 Cologne, March 26, 2026 - DEUTZ, a provider of innovative and sustainable
 mobility and energy solutions, generated significant growth in new orders and
 revenue in 2025 despite a persistently weak market environment in its classic
 engine business. New orders rose by 13.7% to €2,077.7 million and revenue by
 12.7% to €2,043.8 million. DEUTZ benefited from the broader positioning that
 it has established through the implementation of its portfolio strategy. With
 strong adjusted EBIT of €112.3 million (2024: €76.7 million), the adjusted
 EBIT margin was in line with the most recent forecast at 5.5% (2024: 4.2%).
 Besides the profitable acquisitions, savings made under the Future Fit
 cost-cutting program had a positive impact too. Over the course of the year,
 this could be seen from the quarter-on-quarter improvement in the adjusted
 EBIT margin, which increased to 6.8% in the fourth quarter and was thus up by
 3 percentage points compared with a year earlier (Q4 2024: 3.8%).

 "Even though the economic environment remained challenging, especially for the
 engine business, we reported one of the highest profits in our recent history.
 The Group's firm focus on its strategic transformation is bearing fruit.
 Alongside our 6,000 employees, we are creating the next version of DEUTZ:
 stronger, fit for the future, and sustainable," says DEUTZ CEO Dr. Sebastian
 Schulte. "Our goal is to double our revenue to €4 billion by 2030 and
 increase our adjusted EBIT margin to 10%. To this end, we introduced a new
 structure consisting of five independent business units at the start of this
 year."

 As a result, DEUTZ has been managed in a new way since the beginning of 2026.
 Five business units that are organizationally independent of one another
 enable the Company to take account of the different requirements of each of
 its areas of business and to ensure that it acts entrepreneurially and makes
 decisions with a much firmer focus on customers.

 Energy is one of the business units that is to make a significant contribution
 to the achievement of the medium-term targets. Thanks to the acquisition of
 Frerk Aggregatebau GmbH, which was completed at the start of February, DEUTZ
 has created a globally scalable portfolio in the field of decentralized energy
 supply, strengthened its position in the rapidly growing market for data
 center emergency power systems, and laid the foundations for leveraging
 synergies throughout the value chain. The expansion of the defense business
 will also make DEUTZ increasingly resilient and contribute to further growth.
 With its acquisition of SOBEK in 2025 and its partnership with ARX Robotics,
 DEUTZ has successfully positioned itself as a system provider in the growing
 ecosystem for unmanned defense systems.

 Under its strategy, DEUTZ will take steps to boost its efficiency and continue
 to seek out targeted M&A transactions while reducing its structural costs
 at the same time:

 "In 2025, we initiated all of the measures planned under our Future Fit
 cost-cutting program and have already seen an impact of more than €25
 million on our income statement. We are thus comfortably on track to achieve
 our goal of reducing our cost base by well over €50 million compared to 2024
 by the end of this year," says DEUTZ CFO Oliver Neu. Commenting on the DEUTZ
 Group's financial position, he adds: "The purchase of the SOBEK Group in order
 to strategically strengthen our defense portfolio was funded by the very
 successful capital increase that we carried out in September 2025. Our equity
 ratio was just over 50% at the end of last year. We are thus optimally placed
 to continue investing in growth by acquisition."

 Dividend proposed for 2025

 DEUTZ would like its shareholders to benefit from its positive business
 performance. The Board of Management and Supervisory Board will therefore
 propose to the Annual General Meeting on May 13, 2026 that accumulated income
 be used to pay an increased dividend of €0.18 per share for the 2025
 financial year (2024: €0.17).

 Results for 2025 in detail

 New orders received by the DEUTZ Group in 2025 amounted to €2,077.7 million,
 which was 13.7% higher than in the prior year. This significant increase was
 primarily attributable to the expansion of the business portfolio as a result
 of the M&A transactions carried out in 2025. Moreover, the partnerships
 entered into and the acquisitions made in 2024 continued to see sharp rises in
 new orders and made a material contribution to the expansion of the service
 business too. Orders on hand totaled €497.7 million as at December 31, 2025
 (December 31, 2024: €463.9 million).

 DEUTZ's revenue jumped by 12.7% compared with 2024 to stand at €2,043.8
 million. Within this figure, revenue from business involving larger industrial
 engines resulting from the strategic partnership with Daimler Truck and the
 expansion of service business and the DEUTZ Energy business unit more than
 compensated for the decline in revenue caused by the economic headwinds. This
 decline in revenue particularly related to compact diesel engines with a
 capacity of under four liters. Moreover, the Group's defense activities made
 their first noticeable contribution to revenue, especially in the fourth
 quarter.

 Despite the diseconomies of scale arising from a year-on-year reduction in
 engine production at the Cologne site, adjusted EBIT (EBIT before exceptional
 items) 1  improved by 46.4% to €112.3 million (2024: €76.7 million). This
 was attributable to the expansion of sales and service activities for Daimler
 Truck industrial engines, the growth of the energy business thanks to the very
 strong performance of Blue Star Power Systems, the contributions to earnings
 from the acquisitions carried out in 2025, and cost savings, for example under
 the Future Fit program. In line with the rise in adjusted EBIT, the adjusted
 EBIT margin improved to 5.5% (2024: 4.2%).

 Cash flow from operating activities came to €143.4 million in 2025 (2024:
 €110.4 million). This sharp year-on-year rise was predominantly due to the
 increase in operating profit with an impact on cash flow, as well as to lower
 tax payments.

 Free cash flow before mergers and acquisitions improved to €44.2 million on
 the back of the higher cash flow from operating activities (2024: €30.0
 million).

 Guidance for 2026 2 

Based on the assumption that the slight recovery of the engine market seen at
 the start of 2026 will continue, particularly in the case of engines for
 construction equipment and agricultural machinery, DEUTZ anticipates
 consolidated revenue in a range of €2.3 billion to €2.5 billion in 2026.
 It expects the EBIT margin before exceptional items to be in a range of 6.5%
 to 8.0%. 3  This earnings performance should be supported by the final savings
 to be achieved under the Future Fit cost-cutting program, further efficiency
 measures, and planned acquisitions in the service business in the context of
 the strategy implementation. Free cash flow excluding any M&A expenditure
 is predicted to be in the high-double-digit millions of euros.

DEUTZ GROUP: OVERVIEW
 € million
                                 2025              2024        Change      Q4 2025    Q4 2024    Change
 New orders                                                    2,077.7           1,827.1      13.7%       573.2      480.9      19.2%
 Revenue                                                       2,043.8           1,813.7      12.7%       543.4      507.8      7.0%
 EBITDA                                                        208.0             170.2        22.2%       61.9       44.6       38.8%

(before exceptional items)
 EBITDA margin                                                 10.2 %            9.4 %       +0.8pp       11.4%      8.8%      +2.6pp

(before exceptional items)
 EBITDA                                                        169.6             146.0        16.2%       58.9       37.7       56.2%
 Adjusted EBIT                                                 112.3             76.7         46.4%       36.8       19.4       89.7%

(before exceptional items)
 EBIT margin                                                   5.5 %             4.2 %       +1.3pp       6.8%       3.8%      +3.0pp

(before exceptional items)
 Exceptional items                                             -38.4             -34.8        10.3%       -3.0       -17.5      82.9%
 EBIT                                                          73.9              41.9         76.4%       33.8       1.9        1,678.9%
 ROCE 4                                                        8.3 %             6.6 %       +1.7pp
 Free cash flow 5                                              -119.5            -153.1       21.9%       7.7        51.4       -85.0%
 Free cash flow (before M&A)                                   44.2              30.0         47.3%       41.8       58.6       -28.7%
 Net financial position 6                                      -269.4            -225.6       -19.4%
 Working capital 7                                             382.9             383.0        0.0%
 Working capital ratio (Dec. 31) 8                             18.6 %            22.2 %      -3.6pp
 Capital expenditure                                           90.3              100.2        -9.9%       28.7       38.2       -24.9%

(after deducting grants) 9 
 thereof right-of-use-assets for leases under IFRS 16          19.7              26.0         -24.2%      9.2        9.8        -6.1%
 R&D ratio 10                                                  4.2 %             5.1 %       -0.9pp
 R&D expenditure                                               85.0              93.4         -9.0%       21.0       23.3       -9.9%

(after deducting grants)
 Employees (number as at Dec. 31) 11                           5,712             5,228        9.3%

 

DEUTZ Engines & Services
 € million                                  2025         2024        Change       Q4 2025     Q4 2024     Change
 New orders                                 1,896.6      1,654.3      14.6 %       522.6       441.9       18.3 %
 Revenue                                    1,861.0      1,723.6      8.0 %        492.4       458.0       7.5 %
 Adjusted EBIT                              130.0        103.2        26.0 %       40.1        26.1        53.6 %

(before exceptional items)
 EBIT margin (before exceptional items)     7.0 %        6.0 %       +1.0pp        8.1 %       5.7 %      +2.4pp

 

DEUTZ Solutions
 € million                                  2025        2024       Change      Q4 2025    Q4 2024     Change
 New orders                                 181.1       172.8       4.8%        50.6       39.0        29.7%
 Revenue                                    182.8       90.1        102.9%      51.0       49.8        2.4%
 Adjusted EBIT                              -18.9       -25.4       25.6%       -4.0       -5.2        -23.1%

(before exceptional items)
 thereof DEUTZ Energy                       15.2        8.7         74.7%       3.8        4.3         -11.6%
 thereof DEUTZ NewTech                      -34.1       -34.1       0.0%        -7.8       -9.5        -17.9%
 EBIT margin (before exceptional items)     -10.3%      -28.2%     +17.9pp      -7.8%      -10.4%     +2.6pp

The 2025 annual report is available at www.deutz.com/en/investor-relations.

 To mark the Company's promotion to the MDAX with effect from March 23, DEUTZ
 and its Board of Management will be a guest at Deutsche Börse's morning bell
 ringing ceremony on March 26, 2026. Related photographic materials and quotes
 from the members of our Board of Management will be available using the
 following link from 11:30
 a.m.: https://www.deutz.com/en/news/media-center/mdax.

 Upcoming financial dates

May 7, 2026: Quarterly statement for the first quarter of 2026

May 13, 2026: Annual General Meeting

August 6, 2026: Interim report for the first half of 2026

For further information on this press release, please contact:

DEUTZ AG | Lars Boelke | Head of Investor Relations, Communications und
 Marketing

Tel. +49 (0) 221 822-3600 | lars.boelke@deutz.com

 DEUTZ AG | Svenja A. Deißler | Senior Manager Investor Relations & ESG

Tel. +49 (0) 221 822-2491 | Svenja.Deissler@deutz.com

 Forward-looking statements

This press release may contain certain forward-looking statements based on
 current assumptions and forecasts made by the DEUTZ management team. Various
 known and unknown risks, uncertainties, and other factors may lead to material
 differences between the actual results, the financial position, or the
 performance of the DEUTZ Group and the estimates and assessments set out here.
 These factors include those that DEUTZ has described in published reports,
 which are available at www.deutz.com. The Company does not undertake to
 update these forward-looking statements or to change them to reflect future
 events or developments.

 About DEUTZ AG

DEUTZ AG has evolved in recent years from a manufacturer of conventional
 engines into a system provider for innovative and sustainable mobility and
 energy solutions. Founded in 1864 in Cologne, where it is still based today,
 DEUTZ is the world's oldest engine company. The development, production, and
 distribution of high-performance drive systems for off-highway applications
 remains at the heart of its operations. DEUTZ is also playing its part in the
 transition to more sustainable transportation and power supplies by offering
 alternative drive solutions and decentralized energy and power generation
 systems. DEUTZ solutions are used in a wide range of applications, including
 construction equipment, agricultural machinery, material handling equipment
 such as forklift trucks and lifting platforms, stationary equipment such as
 generator sets (gensets), and commercial and rail vehicles. The broad-based
 product portfolio is complemented by an extensive service offering that
 encompasses maintenance and repair work, the supply of spare parts, and
 remanufacturing. This is being continually expanded with the addition of
 digital, data-driven services. With around 1,250 sales and service locations
 in nearly 180 countries, DEUTZ offers its customers an integrated range of
 products and services from a single source. DEUTZ employs around 6,000 people
 worldwide and generated revenue of just over €2.0 billion in 2025. Further
 information is available at www.deutz.com.

 ( 1 ) Exceptional items in 2025 amounting to an expense of €(38.4) million
 that largely related to costs in connection with the Future Fit program and
 strategic projects and acquisitions

  (2024: expense of €(34.8) million).
 ( 2 ) On the basis of information available at the end of February.
 ( 3 ) The ranges given here primarily reflect the scale of the expected
 market recovery and the influence of any economies of scale that arise as a
 result.
 ( 4 ) Return on capital employed; before exceptional items.
 ( 5 ) Cash flow from operating activities and from investing activities less
 interest expense.
 ( 6 ) Cash and cash equivalents less current and non-current interest-bearing
 financial debt.
 ( 7 ) Inventories plus trade receivables less trade payables.
 ( 8 ) Average working capital at the four quarterly reporting dates divided
 by revenue for the previous twelve months.
 ( 9 ) Capital expenditure on property, plant and equipment (including
 right-of-use assets in connection with leases) and intangible assets,
 excluding capitalized development expenditure in relation to the product
 portfolio.
 ( 10 ) Research and development expenditure (after deducting grants) as a
 percentage of revenue.
 ( 11 ) Full-time equivalents (FTEs).

26.03.2026 CET/CEST Dissemination of a Corporate News, transmitted by EQS
 News (https://www.eqs.com/ir-services/eqsnews)  - a service of EQS Group
 (https://www.eqs.com) .

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
 Financial/Corporate News and Press Releases.

 

 DEUTZ Engines & Services
 € million                                  2025         2024        Change       Q4 2025     Q4 2024     Change
 New orders                                 1,896.6      1,654.3      14.6 %       522.6       441.9       18.3 %
 Revenue                                    1,861.0      1,723.6      8.0 %        492.4       458.0       7.5 %
 Adjusted EBIT                              130.0        103.2        26.0 %       40.1        26.1        53.6 %

(before exceptional items)
 EBIT margin (before exceptional items)     7.0 %        6.0 %       +1.0pp        8.1 %       5.7 %      +2.4pp

 

 DEUTZ Solutions
 € million                                  2025        2024       Change      Q4 2025    Q4 2024     Change
 New orders                                 181.1       172.8       4.8%        50.6       39.0        29.7%
 Revenue                                    182.8       90.1        102.9%      51.0       49.8        2.4%
 Adjusted EBIT                              -18.9       -25.4       25.6%       -4.0       -5.2        -23.1%

(before exceptional items)
 thereof DEUTZ Energy                       15.2        8.7         74.7%       3.8        4.3         -11.6%
 thereof DEUTZ NewTech                      -34.1       -34.1       0.0%        -7.8       -9.5        -17.9%
 EBIT margin (before exceptional items)     -10.3%      -28.2%     +17.9pp      -7.8%      -10.4%     +2.6pp

The 2025 annual report is available at www.deutz.com/en/investor-relations.

To mark the Company's promotion to the MDAX with effect from March 23, DEUTZ
and its Board of Management will be a guest at Deutsche Börse's morning bell
ringing ceremony on March 26, 2026. Related photographic materials and quotes
from the members of our Board of Management will be available using the
following link from 11:30
a.m.: https://www.deutz.com/en/news/media-center/mdax.

Upcoming financial dates

May 7, 2026: Quarterly statement for the first quarter of 2026

May 13, 2026: Annual General Meeting

August 6, 2026: Interim report for the first half of 2026

For further information on this press release, please contact:

DEUTZ AG | Lars Boelke | Head of Investor Relations, Communications und
Marketing

Tel. +49 (0) 221 822-3600 | lars.boelke@deutz.com

DEUTZ AG | Svenja A. Deißler | Senior Manager Investor Relations & ESG

Tel. +49 (0) 221 822-2491 | Svenja.Deissler@deutz.com

Forward-looking statements

This press release may contain certain forward-looking statements based on
current assumptions and forecasts made by the DEUTZ management team. Various
known and unknown risks, uncertainties, and other factors may lead to material
differences between the actual results, the financial position, or the
performance of the DEUTZ Group and the estimates and assessments set out here.
These factors include those that DEUTZ has described in published reports,
which are available at www.deutz.com. The Company does not undertake to
update these forward-looking statements or to change them to reflect future
events or developments.

About DEUTZ AG

DEUTZ AG has evolved in recent years from a manufacturer of conventional
engines into a system provider for innovative and sustainable mobility and
energy solutions. Founded in 1864 in Cologne, where it is still based today,
DEUTZ is the world's oldest engine company. The development, production, and
distribution of high-performance drive systems for off-highway applications
remains at the heart of its operations. DEUTZ is also playing its part in the
transition to more sustainable transportation and power supplies by offering
alternative drive solutions and decentralized energy and power generation
systems. DEUTZ solutions are used in a wide range of applications, including
construction equipment, agricultural machinery, material handling equipment
such as forklift trucks and lifting platforms, stationary equipment such as
generator sets (gensets), and commercial and rail vehicles. The broad-based
product portfolio is complemented by an extensive service offering that
encompasses maintenance and repair work, the supply of spare parts, and
remanufacturing. This is being continually expanded with the addition of
digital, data-driven services. With around 1,250 sales and service locations
in nearly 180 countries, DEUTZ offers its customers an integrated range of
products and services from a single source. DEUTZ employs around 6,000 people
worldwide and generated revenue of just over €2.0 billion in 2025. Further
information is available at www.deutz.com.

( 1 ) Exceptional items in 2025 amounting to an expense of €(38.4) million
that largely related to costs in connection with the Future Fit program and
strategic projects and acquisitions

  (2024: expense of €(34.8) million).
( 2 ) On the basis of information available at the end of February.
( 3 ) The ranges given here primarily reflect the scale of the expected
market recovery and the influence of any economies of scale that arise as a
result.
( 4 ) Return on capital employed; before exceptional items.
( 5 ) Cash flow from operating activities and from investing activities less
interest expense.
( 6 ) Cash and cash equivalents less current and non-current interest-bearing
financial debt.
( 7 ) Inventories plus trade receivables less trade payables.
( 8 ) Average working capital at the four quarterly reporting dates divided
by revenue for the previous twelve months.
( 9 ) Capital expenditure on property, plant and equipment (including
right-of-use assets in connection with leases) and intangible assets,
excluding capitalized development expenditure in relation to the product
portfolio.
( 10 ) Research and development expenditure (after deducting grants) as a
percentage of revenue.
( 11 ) Full-time equivalents (FTEs).

 

26.03.2026 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News (https://www.eqs.com/ir-services/eqsnews)  - a service of EQS Group
(https://www.eqs.com) .

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.

 Language:     English
 Company:      DEUTZ AG
               Ottostraße 1
               51149 Köln (Porz-Eil)
               Germany
 Phone:        +49 (0)221 822 2491
 Fax:          +49 (0)221 822 3525
 E-mail:       svenja.deissler@deutz.com
 Internet:     www.deutz.com
 ISIN:         DE0006305006
 WKN:          630500
 Indices:      MDAX
 Listed:       Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated
               Unofficial Market in Hamburg, Hanover, Munich, Stuttgart, Tradegate BSX
 EQS News ID:  2297126

 

 End of News  EQS News Service

2297126  26.03.2026 CET/CEST

 

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