4 days ago
Deutz bucks the trend despite making fewer engines
Deutz, the manufacturer of diesel engines, is celebrating a strong growth in new orders and revenue in the first six months of 2025.
During this period, new orders increased by 30.7% to €1,034.1 million and revenue rose by 15.0% to €1,007.1 million, giving an EBIT (earnings before interest and tax) margin of 4.7%.
Deutz believes that it is reaping the rewards of its attempts to build its resilience with a broader base and notes that this increase in revenue comes despite economic uncertainties and geopolitical challenges.
The company claims that the integration of new lines of business and a rigorous implementation of its cost-cutting programme is enhancing its long-term competitiveness.
There have also been several acquisitions, including the genset manufacturer Blue Star Power Systems along with the integration of selected Daimler Truck engines from Rolls-Royce.
Further growth through acquisitions is planned for the future.
Another bright spot for Deutz was that the higher margin service business increased its income by 8.7% to €274.9 million in the first half of 2025.
Deutz is basing its predictions for 2025 as a whole on a continuing but modest recovery, and is anticipating the total revenue for the year as being between €2.1 billion and €2.3 billion.
Deutz engines are popular when it comes to materials handling, the Claas Scorpion range has them as power plants
Thanks to its broader positioning, the Deutz Group's new orders surged by 30.7% compared with the first six months of 2024 to stand at €1,034.1 million. Orders on hand stood at €490.9 million as at June 30, 2025 (June 30, 2024: €365.9 million).
Emerging from the results presented by Deutz is that despite the increase in revenue, the number of engines sold actually decreased by 9.1% to 67,440 units.
This countervailing trend was attributed to higher average prices per unit, due to a shift in the product portfolio.
The company said the revenue contribution of HJS Emission Technology, which was acquired in June, also had a positive impact.
