Deutz AG promotion to the MDAX and the 2025 Output

Deutz passed the 2025 test with flying colors, exceeding €2 billion in revenue, mainly due to its acquisition campaign. New orders rose by 13.7% to €2,077.7 million and revenue by 12.7% to €2,043.8 million. 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%). 

Deutz CEO’s Comments

“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 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 Business Unit

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.

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.

CFO Oliver Neu

“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.”

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) 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

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%. 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.