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 energy, defense, and service segments.

• Revenue increased by 12.7% year-over-year to €2.044 billion, with new orders up 13.7% to €2.078 billion.

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

• Free cash flow before M&A increased nearly 50% to €44.2 million, driven by strong Q4 inflows.

• New organizational structure with five business units implemented to achieve 2030 targets.

Financial highlights

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

• Book-to-bill ratio at 1.02, order backlog at approximately €500 million.

• Service revenue grew 9% year-over-year to €545 million, with inorganic growth from US acquisitions.

• Energy segment delivered €170 million revenue and €15 million EBIT (14% margin operationally).

• Dividend proposal increased to €0.18 per share.

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 be high double-digit million euros.

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

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

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