DEUTZ (DEZ) Q2 2026 earnings summary

Executive summary

• Achieved double-digit revenue growth in H1 2026, with revenue up 10.7% to €1,115.3 million and new orders up 28.7% to €1,331.3 million, driven by all business units, especially Energy, Service, and Defense.

• Adjusted EBIT rose 43.1% to €79.7 million, with margin improving to 7.1% year-over-year, and net income increased to €33.5 million.

• Major acquisitions included Frerk Aggregatebau, MAXI TRUST, G&T Truck Repair, and the transformational €1.6 billion FFG deal, expected to add over €1 billion in high-margin revenue and accelerate Defense growth.

• Portfolio diversification into Energy, Defense, and Service is reducing cyclicality and supporting resilience.

• Order backlog and book-to-bill ratio improved, supporting future revenue visibility.

Financial highlights

• New orders rose 28.7% year-over-year to €1,331.3 million; revenue up 10.7% to €1,115.3 million.

• Adjusted EBIT increased 43.1% to €79.7 million (margin 7.1%, up from 5.5%); EBITDA before exceptional items rose 28.3% to €122.7 million (margin 11.0%).

• Net income reached €33.5 million, including a €12.5 million provision for a voluntary leave program.

• Free cash flow before M&A was negative at €-29.7 million, mainly due to higher inventories and severance payments.

• Net debt increased to €520.5 million, equity ratio at 43% after acquisitions.

Outlook and guidance

• Guidance for 2026 confirmed: revenue €2.3–2.5 billion, adjusted EBIT margin 6.5–8.0%, and high double-digit million euro free cash flow.

• H2 expected to be stronger, driven by Energy, Defense, and Service units; engine recovery anticipated.

• Strategic targets for 2030 (€4 billion revenue, 10%+ EBIT margin) anticipated to be reached significantly earlier due to FFG acquisition.

• No substantial direct impact from geopolitical crises or US tariffs as of reporting date.