A Strong First Half for Deutz Despite Economic Uncertainties
Engine and power generation manufacturer Deutz posted €518.1 million in second quarter 2025 revenue, compared to €420.8 million in the second quarter of 2024, a 23.1-percent revenue increase. New orders amounted to a value of €488 million in the quarter compared to €371.8 million in the second quarter of 2024, a 31.3-percent boost.
Revenue for the first half of the year totaled €1,007.1 million compared to €875.5 million a year ago, a 15-percent boost. New orders valued €1,034.1 million in 1H25 compared to €791.0 million in the year-ago half.
“We are reaping the rewards of our transformation into a more resilient company with a broader base,” said Dr. Sebastian Schulte, CEO of Deutz AG. “Despite economic uncertainties and geopolitical challenges, we have been able to achieve a significant increase in revenue and have remained comfortably profitable. The integration of new lines of business and the rigorous implementation of our cost-cutting program are enhancing our long-term competitiveness. We will continue to systematically pursue our chosen path.”
The acquisition of genset manufacturer Blue Star Power Systems, the integration of selected Daimler Truck engines from Rolls-Royce Power Systems, and the acquisitions of HJS Emission Technology (an exhaust aftertreatment specialist) and Urban Mobility Systems (a Dutch innovation leader in the field of battery-electric drives for off-highway applications) all serve to strengthen the portfolio and open up new market potential. The high-margin service business remains an important growth driver, with revenue increasing by 8.7 percent to €274.9 million in the first half of 2025. Through its Future Fit cost-cutting program, Deutz intends to permanently lower costs by €50 million per year by the end of 2026.
Deutz confirms previous guidance
“We are making good progress and already expect our Future Fit program to achieve a reduction in costs of more than €25 million in the current financial year,” said chief financial officer Oliver Neu. “This will enhance our long-term competitiveness and create the conditions for further growth – including through acquisitions. Deutz is confirming its previous guidance for 2025 as a whole, in which it anticipated revenue of between €2.1 billion and €2.3 billion and an adjusted EBIT margin of between 5.0 percent and 6.0 percent. Free cash flow before mergers and acquisitions is still predicted to be in the mid-double-digit millions of euros. The aforementioned guidance assumes that the market will make a modest recovery in the second half of the year. It is also based on the assumption that with an agreement now having been reached between the EU and the USA in the tariff dispute, the associated uncertainties have been eliminated and consumer reticence in the U.S. end market will dissipate.”
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.