Deutz releases revenue figures for 2024

Deutz engine production line in Cologne, Germany (Photo: Deutz)

Deutz has published its 2024 report, which shows that revenue was down by 12.1% to €1,813.7 million. EBIT (before exceptional items) was €76.7 million.

According to the German power specialist, this corresponds to an adjusted EBIT Margin of 4.2%, a level only previously achieved when production was operating at significantly higher utilization.

Successful development of the product portfolio is said to have increased new orders by 4.4% over any previous year.

This was driven in part by the purchase of Blue Star Power Systems and the adoption of selected Daimler Truck engines. Additionally, the sale of electric equipment division Torqeedo ‘relieved a considerable amount of pressure on the group’s results’.

“The economic environment took a considerable toll on us over the past financial year, as demonstrated by a look at practically all of our sales markets,” said Deutz CEO, Dr. Sebastian C. Schulte.

“The good news is that we are making money even in these difficult times. Our strategy of putting Deutz on a progressively broader and more resilient footing is already paying off. We will therefore position ourselves even more strongly as a solution provider along the value chains we are familiar with. At the same time, we see considerable potential for further profitable expansion of our business with traditional internal combustion engines and our service business.”

The core of the Dual+ strategy is a greater diversification of the company portfolio. This includes starting work in the decentralized energy market, adopting a demand-driven strategy for alternative drive systems and expanding the global service business.

With this and other plans, the company has targeted increasing revenue to around €4 billion by 2030.

Deutz also began implementing an efficiency program over the past financial year with the aim of strengthening its profitability. The program has seen 300 jobs cut and a reduction in operating costs. The aim is to reduce costs in a sustainable basis through 2026.

“The cost-cutting measures that we introduced at short notice led to savings of just over €15 million last year,” said Deutz CFO, Oliver Neu. “Our task now is to expand the measures already taken and to consolidate them.

“And this is precisely the objective of our Future Fit program, under which we intend to achieve a lasting reduction in our cast base of €50 million per year.”