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COLOGNE - Deutz (ETR:DEZG) AG has announced a robust start to 2025, reporting a significant increase in orders and a solid financial performance for the first quarter, despite ongoing market challenges. The company’s successful portfolio restructuring efforts have led to a 30.3% increase in order intake compared to the same period last year, with revenues rising by 7.5%.
The German engine manufacturer’s adjusted earnings before interest and taxes (EBIT) for Q1 stood at €21.0 million, translating to an adjusted EBIT margin of 4.3%. This positive outcome is attributed to the consistent implementation of the "Dual+" strategy, including the recently launched "Future Fit" program aimed at reducing costs and increasing efficiency.
Sales volumes decreased by 18.2% to 31,263 units, but this was offset by higher average prices per unit sold, a strong service business, and the positive effects of portfolio transformation. The order backlog as of March 31, 2025, amounted to €521.0 million, up from €414.9 million the previous year.
Deutz CEO Dr. Sebastian C. Schulte expressed confidence in the company’s strategic direction, emphasizing its profitability even in difficult economic times. The company’s recent acquisitions, including Blue Star Power Systems and HJS Emission Technology, as well as the integration of selected Daimler-Truck engines and the entry into the generator business, have contributed to a more resilient positioning.
The company’s efficiency program is on track to sustainably reduce costs by €50 million annually by the end of 2026. CFO Oliver Neu highlighted the success of immediate cost-saving measures taken last year, which saved approximately €15 million.
The cash flow from operating activities in Q1 2025 was €50.9 million, a significant improvement over the €24.7 million reported in the same quarter of the previous year, mainly due to working capital changes. The free cash flow reached €23.8 million, compared to €5.1 million in Q1 2024.
For the full year 2025, Deutz expects a revenue range between €2.1 billion and €2.3 billion, with an adjusted EBIT margin between 5.0% and 6.0%. The free cash flow, excluding potential M&A expenses, is projected to be in the mid-double-digit million-euro range.
This report is based on a press release statement from Deutz AG, providing a snapshot of the company’s financial health and strategic direction as it navigates a challenging economic environment.
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