Deutz Posts Solid First Quarter Jumps in Revenues and New Orders
Engine-maker Deutz Corp. posted €530 million in revenue in the first quarter of 2026 compared to €489 million in the first quarter of 2025, an 8.4-percent increase. The group did €771 million in new orders in the quarter compared to €546.1 million in new orders in Q125, a 41.2 percent increase.
Adjusted EBITDA improved by 45.7 percent to €37.3 million. Deutz maintained its growth trajectory from the second half of 2025 and started the new year with a margin that was above that of the traditionally strong fourth quarter, despite the first quarter usually being fairly weak.
“New orders, revenue and earnings are all up sharply,” said Deutz CEO Dr. Sebastian Schulte. “Deutz has begun the new year with momentum, and the strategic transformation is increasingly paying off. Our engines business, our new energy and defense lines of business, and the service business – a key area of growth – are making a clear contribution even though the geopolitical situation and other factors mean that market conditions remain challenging.”
The main growth driver was the restructuring of the portfolio, which is being implemented. Growth was carried by early signs of a market recovery in the Construction Equipment and Agricultural Machinery application segments that were strong towards the end of the quarter. The company’s “Future Fit” cost-cutting program also played a key part in increasing profitability.
“The Future Fit action plan has now been implemented in full,” said Deutz chief financial officer Oliver Neu. “Having successfully implemented our cost-cutting program, we are on track to reach our goal of an adjusted EBIT margin of 10 percent by 2030.”
The high volume of new orders was primarily attributable to the Engines, Energy, and Service segments, Deutz said. Signs of a market recovery, particularly in the Construction Equipment and Agricultural Machinery application segments resulted in a good level of organic growth for new orders in the Engines segment and overall company revenue.
New orders in the Energy segment were boosted by the acquisition of Frerk Aggregatebau, completed at the start of February. Frerk contributed around €145 million to the increase in new orders at Group level.
Business outlook for 2026
Deutz continues to anticipate consolidated revenue of between €2.3 billion and €2.5 billion in 2026, along with an adjusted EBIT margin of between 6.5 percent and 8.0 percent. Free cash flow, excluding M&A expenditures, is still predicted to be in the high-double-digit millions of euros.
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.