EQS-News: DEUTZ continues to increase its profitability – double-digit rise in revenue and new orders

• Broader positioning pays off: Revenue grows by around 15% to €1.5 billion and new orders by almost 12% in the first nine months of 2025
• Increased profitability driven by new business and positive effects from Future Fit cost-cutting program
• Further expansion of service business: various acquisitions strengthen position in the growing US market

Cologne, November 6, 2025 – DEUTZ, a provider of innovative and sustainable mobility and energy solutions, again generated significant growth in new orders and revenue in the first three quarters of 2025 despite a persistently weak market environment. New orders rose by 11.8% to €1,504.5 million and revenue by 14.9% to €1,500.4 million. DEUTZ benefited from its broader positioning following the implementation of its portfolio strategy, which more than made up for the decline in the classic engine business. With strong adjusted EBIT of €75.5 million (Q1–Q3 2024: €57.3 million), the adjusted EBIT margin came to 5.0% (Q1–Q3 2024: 4.4%). Besides the profitable acquisitions, savings made under the Future Fit cost-cutting program also had a positive impact here. The adjusted EBIT margin has increased each quarter in the year to date. In the past, the adjusted EBIT margin has typically been weak in the third quarter due to seasonal factors. But in the third quarter of 2025, it reached 5.8%, which was around 4 percentage points higher than in the prior-year period (Q3 2024: 1.7%).

“DEUTZ is evolving from a manufacturer of conventional drive systems into a system provider for innovative and sustainable mobility and energy solutions. This transition is bearing fruit. We are becoming increasingly resilient and seeing significant momentum despite difficult market conditions. This is thanks to the expansion of our service business and, in particular, the integration of new lines of business and a clear focus on cost-cutting. We will continue to pursue our chosen path,” emphasizes Dr. Sebastian Schulte, CEO of DEUTZ AG.    

Following the acquisition of US genset manufacturer Blue Star Power Systems and the integration of selected Daimler Truck engines from Rolls-Royce Power Systems in the third quarter of 2024, DEUTZ has continued to power ahead with the transformation of its portfolio in 2025. At the start of January, DEUTZ acquired a 50% stake in HJS Emission Technology, an exhaust aftertreatment specialist. This was followed at the start of April by the acquisition of UMS, a Dutch technology leader in the electrification of off-highway and defense vehicles, which has given DEUTZ a technological advantage in its NewTech and Defense business units.

In the high-margin service business, DEUTZ continues to pursue an expansion strategy. It acquired its former Istanbul-based service partner Catalkaya Makina in June with the aim of strengthening its service and sales network in Turkey. In the steadily growing US market, DEUTZ has also acquired two companies specializing in maintenance and repair services for heavy machinery, such as mining equipment, trucks, and rail vehicles: its former service partner OnSite Diesel and, at the start of this week, Nevada-based Double Down Heavy Repair. The latter will expand the scope of DEUTZ’s service business to include the machinery in which engines are installed. DEUTZ is thereby further strengthening its growing service business, which increased its revenue by 9.6% to €415.8 million in the first nine months of 2025 and thus once again outperformed the wider market. 

DEUTZ has also further expanded its Defense business. At the start of September, it acquired the SOBEK Group, the leading manufacturer of powerful electric drives for high-tech applications such as military drones.[1] In addition, DEUTZ announced in mid-October that it was forming a strategic partnership with ARX Robotics and thereby further strengthening its position in the growing ecosystem of unmanned defense systems.[2] 
Implementation of the Future Fit cost-cutting program is also progressing well. The program is aimed at permanently lowering costs by €50 million per year by the end of 2026 through a number of initiatives, including a reduction in excess staff capacity – particularly in the engine business. Almost 180 employees had left the Company via the voluntary redundancy program by the end of September 2025.  

“We want to keep growing while also increasing our profitability, and we are making good progress in this regard. We still expect our Future Fit program to achieve a reduction in costs of more than €25 million in the current financial year. This will ensure that we can continue to forge ahead with our Dual+ strategy and enhance our long-term competitiveness,” explains DEUTZ CFO Oliver Neu, who is overseeing the program in cooperation with an interdisciplinary team.

DEUTZ is refining its full-year guidance for 2025 as follows in view of its business performance in the first three quarters of the year: Revenue is now expected to be at €2.1 billion and thus at the lower end of the forecast range of €2.1 billion to €2.3 billion even though the market has not yet recovered, especially in the Construction Equipment and Agricultural Machinery application segments. The adjusted EBIT margin is likely to remain around the midpoint of the target range of 5.0% to 6.0% because of the impact of the portfolio changes, the increasingly positive effects of the cost-cutting program, and the contributions to earnings from the Energy business unit and the service business. Free cash flow before mergers and acquisitions is still predicted to be in the mid-double-digit millions of euros.     

Results for the first three quarters of 2025 in detail[3]
New orders received by the DEUTZ Group in the first three quarters of 2025 amounted to €1,504.5 million, which was 11.8% higher than in the prior-year period. This rise was driven by the growth of the service business, the expansion of the business portfolio, and acquisitions in the past four quarters, which more than made up for the decline in the classic engine business caused by the persistent weakness of the market. Orders on hand totaled €467.9 million as at September 30, 2025 (September 30, 2024: €490.7 million). 

DEUTZ’s revenue jumped by 14.9% to €1,500.4 million in the first nine months of 2025 thanks to the successful transformation of the portfolio. Within this figure, revenue from business involving larger Daimler Truck industrial engines and from the DEUTZ Energy business unit more than compensated for the decline in revenue from the engines business as the anticipated market recovery there still failed to materialize. This decline in revenue particularly related to sub-4 liter engines, especially in the Agricultural Machinery and Construction Equipment application segments. There was also a positive impact from the revenue attributable to the partnerships entered into and acquisitions completed since the fourth quarter of 2024.
Adjusted EBIT (EBIT before exceptional items)[4] increased from €57.3 million in the first three quarters of 2024 to €75.5 million in the same period of 2025. Diseconomies of scale arising from a year-on-year reduction in engine production at the Cologne site were easily offset by, in particular, the contribution to earnings from the sales and service activities taken over from Rolls-Royce Power Systems. Cost savings also played a part, for example under the Future Fit program. The growth of the Energy business unit, which was driven by the continued strong uptrend at Blue Star Power Systems, and the expansion of the service business contributed to the increase in adjusted EBIT too. In line with the rise in adjusted EBIT, the adjusted EBIT margin improved to 5.0 % (Q1–Q3 2024: 4.4 %). This shows that the steps taken by DEUTZ under its Dual+ strategy are paying off and that DEUTZ can do business profitably even when economic conditions are challenging.

In the first nine months of 2025, cash flow from operating activities more than doubled year on year to €76.4 million (Q1–Q3 2024: €31.4 million). This rise was primarily due to the increase in earnings with an impact on cash flow, and to a smaller increase in working capital. The rise in cash flow from operating activities meant that free cash flow amounted to an outflow of €(127.2) million (inflow of €2.4 million before mergers and acquisitions) in the first nine months of 2025, compared with an outflow of €(204.5) million (outflow of €(28.6) million before mergers and acquisitions) in the first nine months of 2024.
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DEUTZ GROUP: OVERVIEW
€ million
		9M 2025		9M 2024[5]		Change		Q3 2025		Q3 2024		Change
New orders		1,504.5		1,346.2		11.8%		470.4		555.2		-15.3%
Revenue		1,500.4		1,305.9		14.9%		493.3		430.4		14.6%
EBITDA (before exceptional items)		146.1		125.6		16.3%		51.6		31.3		64.9%
EBITDA margin (before exceptional items)		9.7%		9.6%		+0.1pp		10.5 %		7.3 %		+3.2pp
EBITDA		110.7		108.3		2.2%		45.0		24.9		80.7%
Adjusted EBIT (before exceptional items)		75.5		57.3		31.8%		28.4		7.2		294.4%
EBIT margin (before exceptional items)		5.0%		4.4%		+0.6pp		5.8 %		1.7 %		+4.1pp
Exceptional items		-35.4		-17.3		104.6%		-6.6		-6.4		3.1%
EBIT		40.1		40.0		0.3%		21.8		0.8		2,625.0%
Net income		20.1		23.6		-14.8%		12.3		-2.0		–
Earnings per share (€)		0.14		0.18		-22.2%		0.08		-0.02		–
Earnings per share (before exceptional items, €)		0.35		0.30		16.7%		0.12		0.02		500.0%
Equity (Sep. 30/Dec. 31)		946.1		847.9		11.6%
Equity ratio (Sep. 30/Dec. 31)		49.0%		50.4%		-1.4pp
Free cash flow[6]		-127.2		-204.5		37.8%		-131.7		-169.4		22.3%
Free cash flow (before M&A)		2.4		-28.6		–		-12.0		6.5		–
Net financial position (Sep. 30/Dec. 31)[7]		-269.2		-225.6		-19.3%
Working capital (Sep. 30/Dec. 31)[8]		399.6		383.0		4.3%
Working capital ratio (Sep. 30/Dec. 31)[9]		19.9%		21.1%		-1.2pp
Working capital ratio (average) (Sep. 30/Dec. 31)[10]		19.0%		22.2%		-3.2pp
Capital expenditure (after deducting grants)[11]		61.6		62.0		-0.6%		26.2		16.5		58.8%
R&D ratio[12]		4.3%		5.4%		-1.1pp
R&D expenditure (after deducting grants)		64.0		70.1		-8.7%		18.9		20.9		-9.6%
Employees (number as at Sep. 30)[13]		5,678		5,239		8.4%

Note: As a result of the transformation of the portfolio, it is no longer meaningful to report unit sales. Consequently, unit sales are not disclosed. 
 

DEUTZ Engines & Services: Key figures
€ million
		9M 2025		9M 2024		Change		Q3 2025		Q3 2024		Change
New orders		1,374.0		1,212.4		13.3%		441.7		437.7		0.9%
Revenue		1,368.6		1,265.6		8.1%		445.2		401.1		11.0%
Adjusted EBIT (before exceptional items)		89.9		77.1		16.6%		33.2		9.4		253.2%
EBIT margin (before exceptional items)		6.6%		6.1%		+0,5 PP		7.5%		2.3%		+5,2 PP

 

DEUTZ Solutions: Key figures
€ million
		9M 2025		9M 2024		Change		Q3 2025		Q3 2024		Change
New orders		130.5		133.8		-2.5%		28.7		117.5		-75.6%
thereof DEUTZ Energy		115.7		128.1		-9.7%		26.1		114.5		-77.2%
thereof DEUTZ New Technology		14.8		5.7		159.6%		2.6		3.0		-13.3%
Revenue		131.8		40.3		227.0%		48.1		29.3		64.2%
thereof DEUTZ Energy		123.1		35.5		246.8%		43.8		26.7		64.0%
thereof DEUTZ New Technology		8.7		4.8		81.3%		4.3		2.6		65.4%
EBIT before exceptional items		-14.9		-20.2		26.2%		-4.7		-2.4		-95.8%
thereof DEUTZ Energy		11.4		4.4		159.1%		3.4		4.4		-22.7%
thereof DEUTZ New Technology		-26.3		-24.6		-6.9%		-8.1		-6.8		-19.1%
EBIT margin before exceptional items		-11.3%		-50.1%		+38,8 PP		-9.8%		-8.2%		-1,6 PP

The quarterly statement for the first to third quarter of 2025 is available at www.deutz.com/en/investor-relations.

Upcoming financial dates
March 26, 2026: 2025 annual report
May 7, 2026: Quarterly statement for the first quarter of 2026
May 13, 2026: 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 | Jakob Barzel | Head of Investor Relations, Communications & Marketing | Tel: +49 (0)221 822 3600 | Jakob.Barzel@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.

Über die 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 marketing 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 1,000 sales and service locations in over 120 countries, DEUTZ offers its customers an integrated range of products and services from a single source. DEUTZ employs more than 5,500 people worldwide and generated revenue of approximately €1.8 billion in 2024. Further information is available at www.deutz.com.