The stabilization course that the North Rhine-Westphalian technology company Deutz introduced under the name Dual+-Strategy at the beginning of 2023 is apparently showing success. For the first half of 2025, the engine specialist reports significant increases in sales and higher order intakes, despite a still challenging market environment and a sales decline of around 9 percent. Thus, the order intake increased by 30.7 percent compared to the same period last year to just over one billion euros. The revenue also grew by 15 percent to just over one billion euros.
The company attributes the result to the successful implementation of its portfolio strategy, which includes an expansion of the range through company acquisitions, for example. However, savings within the framework of the "Future Fit" cost program have also contributed to stabilization:
"Our transformation into a more broadly positioned, more resilient company is showing effects. Despite economic uncertainties and geopolitical challenges, we were able to significantly increase our revenue and remain clearly profitable."
Several Acquisitions Have a Stabilizing Effect
Dr. Sebastian C. Schulte, CEO of Deutz AG, is convinced that particularly the integration of new business fields,
as well as the "consistent implementation of our cost program," have significantly contributed to strengthening competitiveness. Because of this, the company will, according to Dr. Schulte, consistently pursue this strategy further. Last year, for example, Deutz took over an engine business unit from Daimler Truck. Furthermore, the European service network was expanded. And alongside truck manufacturer Daimler Truck, Deutz also counts the Stuttgart-based supplier Mahle as one of its cooperation partners to strengthen the business with a broader setup: here in the field of hydrogen engines.
However, strengthening market position extends far beyond national borders. Last year, the portfolio was expanded through the acquisition of the American power generator manufacturer Blue Star Power Systems, and the integration of the exhaust aftertreatment specialist HJS Emission Technology also served to tap new market potentials: the Dutch provider of battery-electric drives for off-highway applications transferred from Urban Mobility Systems to Deutz.
According to a press release, the service business has also developed into an "important growth driver": Deutz achieved a revenue increase of 8.7 percent in this segment to 274.9 million euros. The company's security strategy also includes the
"Future Fit" cost program, with which costs are to be reduced annually by 50 million euros by the end of 2026.
Deutz intends to maintain this strategy of program expansion while simultaneously saving costs. CFO Oliver Neu, one of those responsible for the program, says:
"We are making good progress and expect to save more than 25 million euros through our Future Fit program in the current fiscal year. This sustainably increases our competitiveness and creates the basis for further growth – also through acquisitions."
Forecast Depends on Several Factors
For the full year, the company, which celebrated its 160th anniversary last year, confirms its forecast and therefore expects sales of between 2.1 and 2.3 billion euros. The adjusted EBIT margin is then expected to be between 5.0 and 6.0 percent – provided that the assumed slight market recovery in the second half actually occurs and that the agreement between the EU and the USA regarding the tariff conflict indeed leads to an end to the purchasing restraint in the American end market.
Individual Figures
The order backlog as of June 30, 2025, is indicated at
a total of 490.9 million euros – a significant increase: in the same period last year, it was still 365.9 million euros. However, there was also a sales decline: compared to the first half of 2024, this amounts to a total of 9.1 percent, or 67,440 units. However, sales increased by 15 percent to just over one billion euros during this period. Deutz explains the opposing development with price increases due to the "successful portfolio transformation." An additional positive effect also came from the revenue contribution by the HJS Emission Technology, acquired in June.
Further positive developments are attributed to the acquisition of Blue Star Power Systems and the sales and service activities of Rolls-Royce Power Systems from the year 2024. The Future Fit cost program has also been able to absorb some burdens, for example in the research and development area, it says. The number of employees has increased by 10.5 percent compared to the first half of 2024 to currently 5,571, according to the information provided.
Deutz has published the details of the business figures for the first half of 2025 on its website.
