2024 results: Deutz holds its own in a difficult environment

Deutz felt the effects of the persistent, cyclical weakness in demand in 2024, but nevertheless ended the year successfully following a stable fourth quarter. This is shown by the results published on March 20, according to which Deutz has met the guidance, as adjusted in October 2024.

With revenue down by 12.1% to €1,813.7 million, the Company achieved adjusted earnings (EBIT before exceptional items) of €76.7 million. This corresponds to an adjusted EBIT margin of 4.2%, which is a level of margin that Deutz had previously achieved only when production was running at significantly higher capacity utilization. At €1,827.1 million, new orders were 4.4% higher than in the previous year, mainly due to the successful development of the portfolio.

In 2024, Deutz acquired the US genset manufacturer Blue Star Power Systems and took over the off-highway business for selected Daimler Truck engines from Rolls-Royce Power System. In addition, the sale of the loss-making subsidiary Torqeedo, which was completed in spring 2024, relieved a considerable amount of pressure on the Group’s results.

“The economic environment took a considerable toll on us over the past financial year, as demonstrated by a look at practically all of our sales markets. The good news is that we are making money even in these difficult times,” explains Deutz CEO Sebastian C. Schulte. “Our strategy of putting Deutz on a progressively broader and more resilient footing is already paying off. We will therefore position ourselves even more strongly as a solution provider along the value chains we are familiar with. At the same time, we see considerable potential for further profitable expansion of our business with traditional internal combustion engines and our service business.”

“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, under which we intend to achieve a lasting reduction in our cost base of €50 million per year,” explains Deutz CFO Oliver Neu.

Assuming a tangible market recovery in the second half of 2025, but before assessing the announced increase in US import tariffs, Deutz expects revenue of between €2.1 billion and €2.3 billion for the 2025 financial year, accompanied by an EBIT margin before exceptional items (adjusted EBIT margin) of between 5.0% and 6.0%.

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