DEUTZ (DEZ) Q4 2025 earnings summary

Executive summary

• Achieved strong and profitable growth in 2025 despite weak core engine markets, driven by diversification, portfolio expansion, and strategic transformation into new business areas and services.

• Revenue rose 12.7% year-over-year to €2.044 billion, with new orders up 13.7% to €2.08 billion.

• Adjusted EBIT margin improved to 5.5% (+1.3pp year-over-year), supported by margin-accretive M&A and cost reduction initiatives.

• Free cash flow before M&A increased by 47.3% to €44.2 million, driven by strong Q4 inflows.

• Transformation strategy implemented with five business units: Defense, Energy, Engines, NewTech, and Service.

Financial highlights

• Adjusted EBIT rose 46.4% to €112.3 million (margin 5.5%), net income increased to €54.1 million.

• Service business revenue grew 9% year-over-year to €545 million.

• Energy segment delivered €170 million revenue and a 14% operational EBIT margin.

• CapEx reduced to €90.3 million, R&D spending down to €85 million (R&D ratio 4.2%).

• EBITDA before exceptional items grew 22.2% to €208.0 million; EBITDA margin reached 10.2%.

Outlook and guidance

• 2026 revenue expected between €2.3–2.5 billion, with EBIT margin guidance of 6.5–8%.

• Free cash flow projected to remain high double-digit million EUR.

• Growth expected from Energy, Service, and Defense; engine market recovery anticipated in H2 2026.

• 2030 targets: €500 million revenue in Energy, €300 million in Defense, and 10% adjusted EBIT margin group-wide.

• Strategic focus on efficiency, further M&A, and cost reduction to support growth.