DEUTZ Generated Double-Digit Growth in the First Half of 2026 

“DEUTZ is achieving double-digit growth in new orders, revenue, and earnings – and this in a market environment that remains challenging given the geopolitical situation. The strategic transformation of the Group is increasingly paying off: Our growth areas Service and Energy are making strong contributions – and the agreed-upon acquisition of FFG is a real game-changer for our profitably growing Defense business: We are expanding it into a key pillar of the Group and will thus achieve our revenue and margin targets for 2030 significantly ahead of plan,” says DEUTZ CEO Sebastian Schulte.

The “Old” DEUTZ is the Driver of the Success During the First Half of 2026

Business performance in the first half of the year was driven primarily by the Engines, Service, and Energy business units. The Future Fit cost program in the business unit Engines also made a noticeable contribution to the increase in profitability and is proceeding fully according to plan.

“Our increased profitability shows that our cost discipline is paying off. In addition to the positive revenue trend, our Future Fit program in particular helped boost adjusted EBIT by more than 40 percent. The turnaround in the Engines business is a particularly clear indication that our measures are taking effect. Its adjusted EBIT is improving steadily and more than quintupled during the reporting period – albeit still at a low level. On this basis, we confirm our forecast for the full year 2026,” says DEUTZ CFO Oliver Neu.

FFG acquisition for the Defense business

DEUTZ is significantly advancing its strategic transformation through a billion-euro transaction: In early July, the Company signed an agreement to acquire 100% of the shares in FFG Flensburger Fahrzeugbau Gesellschaft mbH. FFG develops, modernizes, and maintains military vehicles – ranging from armored recovery vehicles and infantry fighting vehicles to armored personnel carriers and and special-purpose vehicles – and is one of Europe’s leading providers of military ground vehicles and special-purpose vehicles. With more than 1,100 employees, the company is one of the German Armed Forces’ most important partners, a supplier to the armed forces of more than 15 nations, and the backbone of approximately 30 vehicle platforms.

DEUTZ had already strategically positioned itself in the defense sector with the acquisition of SOBEK in 2025; in early July 2026, as part of a strategic partnership with ARX Robotics, industrial series production began on the GEREON, an unmanned ground system for use on the battlefield. Through the acquisition of FFG, DEUTZ is now becoming a key player in this market: FFG brings its vehicle and platform expertise as well as access to long-term defense programs, while DEUTZ contributes its expertise in drive systems, energy, and industrialization, along with a global service network. This creates a leading provider of military vehicles, drive systems, and energy solutions – made in Germany.

The transaction has a value of approximately €1.6 billion and is to be settled partly in cash and partly through the issuance of new DEUTZ shares to FFG’s existing owner families, who would thereby hold up to 29.9% of the shares in DEUTZ AG as long-term anchor shareholders. Completion of the transaction is subject, among other things, to shareholder approval of the planned capital increase in exchange for a contribution in kind at the extraordinary general meeting on August 24, 2026.

“FFG is set to form the core of our Defense business going forward, with all business units able to benefit from synergies and new market access. Through this acquisition, we are once again increasing our resilience and moving into a whole new league in terms of revenue and earnings. FFG alone is expected to generate revenue of over one billion euros next year – with a margin of over 20%. In doing so, we are creating sustainable added value for our shareholders as well,” emphasizes Schulte.

About the Energy Business

Furthermore, DEUTZ also drove forward the expansion of its Energy business in the first half of the year: Following the acquisition of Frerk Aggregatebau in February, DEUTZ acquired Maxi Trust Power, a Brazilian manufacturer of gas and diesel generators, in early June. In doing so, DEUTZ is strengthening its market position in Latin America, expanding its global network as a provider and system integrator of decentralized energy supply solutions, and complementing its corresponding product portfolio. The business unit Energy is expected to contribute profitable revenue of over €300 million to consolidated revenue already in the current fiscal year and is expected to grow to over €1 billion revenue over the next five years. 

The expansion of the Service business is also progressing: In early June, DEUTZ acquired the U.S. company G&T Truck Repair, thereby expanding its aftermarket presence in the United States.

• New orders: €1,331.3 million in the first half of 2026 (H1 2025: €1,034.1 million).
• Energy business: approximately 20% of Group-level new orders during the reporting period.
• Frerk Aggregatebau: acquired in early February, accounted for just under €160 million of this figure. 

The DEUTZ Group’s orders on hand totaled €713.6 million at the end of the first half of the year, remaining at a very high level (June 30, 2025: €490.9 million).

DEUTZ also posted a significant increase in revenue compared with the same period last year, rising from 10.7% to €1,115.3 million. All segments contributed to this growth – led by DEUTZ Energy with a revenue increase of approximately €37 million, followed by Service with +€28 million, Engines with +€23 million, and Defense & Other with +€17 million.

About Adjusted EBIT (EBIT before exceptional items) 

Adjusted EBIT rose significantly during the reporting period by 43.1% to €79.7 million (H1 2025: €55.7 million). This increase of €24 million is attributable, in part, to the significant rise in earnings in the Engines segment: as a result of revenue growth and improved plant capacity utilization, positive product mix effects, and cost savings realized through the Future-Fit program, its adjusted EBIT rose significantly by €19.6 million to €24.3 million compared with the prior-year period (H1 2025: €4.7 million). The Service segment continued to account for the largest share of adjusted EBIT at €51.4 million (H1 2025: €50.7 million). The rapidly growing Energy segment and Defense & Other contributed €12.3 million and €5.2 million respectively, and already achieved profit margins of 10.6% and 10.0% respectively – significantly above the Group’s margin. However, due to the build-up of structural costs in anticipation of further growth, earnings growth was slightly dampened compared with revenue growth. Looking ahead to the second half of the year, further increases in revenue and earnings are therefore expected. The NewTech segment has not yet reached the break-even point and thus continues to weigh on adjusted EBIT at Group level. However, through a market-oriented focus on R&D projects combined with stringent cost management, it was possible to achieve a noticeable improvement of €5.9 million to a loss of €13.5 million (H1 2025: -€19.4 million). In line with the increase in adjusted EBIT, the adjusted EBIT margin at the Group level improved significantly from 5.5% to 7.1%. 

And How is the Cash Flow Situation?

Cash flow from operating activities amounted to €31.9 million in the first six months of the current fiscal year (H1 2025: €60.8 million). The fact that it remained below the prior-year level despite the positive earnings trend is primarily attributable to higher inventory levels driven by order volume and seasonal factors. In addition, higher payments of performance-based salary and wage components, as well as severance payments from the Future Fit program, also contributed to this. 

Free cash flow before M&A amounted to €-29.7 million (H1 2025: €14.4 million) as a result of the trend in cash flow from operating activities. 

What is the Business Outlook for 2026?

DEUTZ continues to expect consolidated revenue of between €2.3 billion and €2.5 billion in 2026, along with an adjusted EBIT margin of between 6.5% and 8.0%. Free cash flow before M&A expenditures is still expected to be in in the high double-digit millions of euros.