DEUTZ (DEZ) Q3 2025 earnings summary

Executive summary

• Revenue increased 14.9% year-over-year to €1,500 million, with new orders up 11.8% to €1,505 million, driven by portfolio expansion, acquisitions, and service growth.

• Adjusted EBIT margin improved to 5.0% (up 0.6pp year-over-year), supported by cost savings, M&A, and portfolio development.

• Free cash flow improved by €31 million year-over-year, with operating cash flow up 143.3% to €76.4 million.

• Transformation towards innovative and sustainable mobility, energy, and defense solutions is accelerating, with resilience and dynamism increasing.

• Net income declined to €20.1 million due to lower deferred tax income and Future Fit provisions, while EPS before exceptional items rose 16.7% to €0.35.

Financial highlights

• Adjusted EBIT for 9M 2025 was €75.5 million (5.0% margin), up 31.8% from €57.3 million (4.4%) in 9M 2024.

• Service segment revenue grew 9.4% to €406.6 million, with total service revenue at €415.8 million.

• EBITDA before exceptional items rose 16.3% to €146.1 million, with a margin of 9.7%.

• Equity ratio at 49%, with equity at €946.1 million; leverage at 1.4x.

• Net debt rose to €86.9 million due to M&A, while net financial position was €(269.2) million after acquisitions.

Outlook and guidance

• Full-year 2025 revenue expected at €2.1 billion, at the lower end of the guidance range.

• Adjusted EBIT margin forecasted around the midpoint of the 5.0–6.0% range, supported by cost savings and portfolio changes.

• Free cash flow before M&A expected in the mid-double-digit million-euro range.

• Further margin increases and strong Q4 performance anticipated, with no significant supply chain or semiconductor risks foreseen.

• No one-off effects anticipated in Q4.