Financial Performance in the First Quarter of 2025
The Cologne-based engine manufacturer Deutz recorded a revenue increase of 7.5 percent to 489 million euros in the first quarter of 2025, despite an 18.2 percent decline in sales. Although revenue was slightly below the analyst expectations of 501.5 million euros, a positive development is evident, mainly attributed to higher prices and a growing service business.
Sales and Order Intake
Sales decreased to 31,263 engines, which is owed to difficult economic conditions. In stark contrast, order intake significantly exceeded expectations, amounting to 546.1 million euros, reflecting a 30.3 percent increase compared to the previous year.
EBIT and Operational Challenges
Adjusted EBIT slightly increased to 21 million euros, although it decreased compared to the previous quarter due to inflation and lower volumes.
Strategic Developments and Market Adjustments
Deutz is significantly benefiting from its service business and positive developments in the emissions solutions sector, including collaboration with HJS. Additionally, Deutz is entering new business areas such as the power generator market, which underscores the potential for future growth.
Investor Confidence
Although the quarter ended with a loss of 10 million euros due to restructuring measures, investor confidence was reflected in the rising stock price of Deutz. The order backlog as of March 31, 2025, was 521 million euros, which is another indication of confidence in the company’s adaptability and future prospects.