DEUTZ AG Maintains Profitability Amid Economic Challenges

DEUTZ AG has reported a robust performance amid challenging economic conditions affecting demand. The company achieved an adjusted EBIT margin of 4.4% in the first nine months of 2024, even as revenue declined 13.4% to €1,305.9 million. Recently made strategic acquisitions, including Blue Star Power Systems and parts of Daimler Truck’s engine business, aided DEUTZ in stabilizing new orders, which only slightly fell compared to the previous year.

DEUTZ has set a cost-reduction program targeting permanent savings of €50 million by 2026 to bolster profitability. This involves cutting operational costs and potential job reductions, with emphasis on responsible execution of these changes.

The economic headwinds have impacted unit sales, which dropped 22% in the reviewed period. Despite these hurdles, DEUTZ's service business grew, reflecting a strategic focus on high-margin sectors. The company’s financial outlook anticipates continued resilience through strategic portfolio diversification and a focus on alternative drive markets, aiming for revenue of €4 billion by 2030.