Deutz maintains positive momentum in first half

In spite of persistently challenging market conditions, Deutz AG reported strong growth in new orders and revenue in the first six months of 2025, sustaining the positive performance reported in the first quarter of the year.

New orders saw a marked increase of 30.7% to €1,034.1 million. Orders on hand stood at €490.9 million as of June 30, 2025 (June 30, 2024: €365.9 million).

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

Though unit sales fell by 9.1% to 67,440 units compared with the first half of 2024, revenue rose by 15.0% to €1,007.1 million. This was attributed largely to higher average prices per unit sold due to the successful transformation of the portfolio, the company said, as well as to the revenue contribution of HJS Emission Technology, acquired in June 2025. 

Adjusted EBIT (EBIT before exceptional items) saw a modest decline to €47.1 million vs. €50.1 million in the first half of 2024, with an adjusted EBIT margin of 4.7%. This was mainly due to lower unit sales, a reduction in the production volume and the resulting diseconomies of scale, the company stated.

Deutz noted a positive impact on earnings performance from its Blue Star Power Systems acquisition and takeover of sales and service activities from Rolls-Royce Power Systems in the second half of 2024, as well as lower R&D costs and costs savings from the Future Fit cost reduction program, which seeks to permanently lower costs by €50 million per year by the end of 2026. In addition, Deutz reported that its high-margin service business has remained an important growth driver, with revenue increasing by 8.7% to €274.9 million in the first half of 2025.

Overall, Dr. Sebastian C. Schulte, CEO, said Deutz is reaping the rewards of its transformation into a more resilient company with a broader base. “Despite economic uncertainties and geopolitical challenges, we have been able to achieve a significant increase in revenue and have remained comfortably profitable. The integration of new lines of business and the rigorous implementation of our cost-cutting program are enhancing our long-term competitiveness. We will continue to systematically pursue our chosen path,” he added.

Deutz confirmed its previous guidance for full-year 2025, which anticipates revenue of between €2.1 billion and €2.3 billion and an adjusted EBIT margin of between 5.0% and 6.0%. The guidance assumes a modest market recovery in the second half of the year, as well as the elimination of uncertainties and U.S. consumer reticence now that an agreement between the EU and the USA in the tariff dispute has been reached.

Bauma Interview: Bert van Hasselt, Deutz Power Progress International met with Deutz’s Bert van Hasselt at the recent Bauma trade fair in Munich to discuss future plans for the New Technology division