Deutz’s financial reporting is precise and accurate. Those for 2024 witnessed the difficult economic situation, which impacts the entire engine manufacturing environment, especially for off-highway applications. Although market conditions remain challenging, Deutz can look back on a comfortably profitable first quarter of 2025 and a significant rise in orders that was primarily attributable to the successful portfolio changes. This can be seen from the quarterly results.

Deutz acheved a good first quarter

According to the Company, Deutz increased its revenue by 7.5% compared with the first quarter of 2024 to €489 million and posted earnings of €21 million that, considering the still lackluster market environment, can be viewed as healthy. The adjusted EBIT margin therefore stood at 4.3%. This encouraging earnings performance was the result of forging ahead with the established Dual+ strategy and included enhanced positive effects from the Future Fit program, which was launched at the end of 2024 and is aimed at reducing costs and raising efficiency. The consistently strong service business and the successful restructuring of the portfolio had a favorable impact too. Thanks to this transformation, new orders reached €546.1 million, an increase of 30.3% on the figure for the first three months of 2024.

“The acquisition of selected Daimler Truck engines and the entry into the genset business are just two examples of how we are increasingly strengthening our resilience and laying the foundations for the next strategic steps,” explains DEUTZ CEO Sebastian C. Schulte.

Having acquired Blue Star Power Systems, a US manufacturer of gensets, and having taken over the off-highway business for selected Daimler Truck engines from Rolls-Royce Power Systems in August 2024, Deutz went on to acquire a specialist in exhaust aftertreatment, HJS Emission Technology, in January. Another strategic milestone is the recently agreed acquisition of Urban Mobility Systems, a Dutch innovation leader in battery-powered drives for off-highway applications. This latest acquisition will give Deutz a technological edge in the Deutz New Technology business unit and open up much broader access to the market. As well as progressively diversifying its portfolio, the Company is taking further steps to increase its profitability. The efficiency program is aimed at permanently lowering costs by the end of 2026.

A CFO’s comment

“The cost-cutting measures that we introduced at short notice led to savings of just over €15 million last year. 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. By implementing the program, we intend to achieve a lasting reduction in our cost base of €50 million per year. We have made good progress, particularly with regard to adjusting staffing levels,” explains Deutz CFO Oliver Neu, who is overseeing the program in cooperation with an interdisciplinary team.