Deutz reports robust start to 2025

The Deutz Group is reporting a robust start to 2025 that included a year-on-year increase in revenues and significant growth in orders in the first quarter. The company saw revenue rise by 7.5% compared to Q1 2024 to €489.0 million, with posted earnings of €21.0 million. The adjusted EBIT margin stood at 4.3%.

Dr. Sebastian Schulte, CEO and chairman of the Board of Management, Deutz AG

“From an economic perspective, 2024 was not an easy year. This was reflected, in particular, in the very low level of demand. The good news is that, unlike in the past, we still earned money and generated a margin that Deutz would previously have achieved only at very high capacity utilization,” said Deutz CEO Dr. Sebastian C. Schulte at the company’s Annual General Meeting in Cologne, Germany. “This was partly due to the rigorous implementation of our Dual+ strategy, which saw us play an active role in the consolidation of the engine market, expand our profitable service business – which is so crucial to our customers – around the world, enter new markets and implement various cost and performance measures to improve our efficiency and flexibility.”

At the end of 2024, Deutz also implemented the Future Fit program – a program aimed at reducing costs and raising efficiency. The efficiency program seeks to permanently lower the company’s cost base by €50 million per year through the end of 2026.

“Our strategy of putting Deutz on a progressively broader and more resilient footing is bearing ever greater fruit. The wider economic conditions continue to present us with challenges, but we remain comfortably profitable even in these times,” said Schulte. “The acquisition of selected Daimler Truck engines and the entry into the gen-set business are just two examples of how we are increasingly strengthening our resilience and laying the foundations for the next strategic steps.”

Deutz announced in August 2024 that it had acquired U.S. gen-set manufacturer Blue Star Power Systems and had taken over the off-highway business for select Daimler Truck engines from Rolls-Royce Power Systems. It acquired exhaust emissions aftertreatment specialist HJS Emission Technology in January 2025. Then in April, the company announced an agreement to acquire Urban Mobility Systems, a Dutch supplier of battery-powered drives for off-highway applications, which will become part of the growing New Technology business unit.

Thanks to these portfolio adjustments and acquisitions, net orders for Q1 2025 leapt by 30.3% compared to the same period in 2024, increasing from €419.2 million to €546.1 million, the company reported.

While unit sales fell by 18.2% compared to the first three months of 2024, revenue rose 7.5% to €489.0 million. Deutz said the opposing trends were the result of higher average prices per unit sold as a result of its restructured portfolio, a greater proportion of service business, the HJS Emission Technology business and favorable pricing effects.

Assuming a noticeable market recovery in the second half of 2025 and that measures to mitigate the impact of the tariff situation prove effective, Deutz continues to project revenue of between €2.1 billion and €2.3 billion for 2025 and expects the EBIT margin to be between 5.0% and 6.0%.