DEUTZ (DEZ) Q4 2024 earnings summary

Executive summary

• Celebrated 125th anniversary as a listed company, marking a significant milestone.

• 2024 was challenging due to a difficult economic environment, especially in Europe and construction equipment sectors, with revenue declining 12.1% to €1,814 million.

• Strategic focus on operational improvement, diversification, and major acquisitions (Rolls-Royce Power Systems, Daimler Truck, Blue Star Power Systems) shaped the portfolio and helped cushion market downturns.

• Service and Americas businesses stabilized results, with service segment surpassing €500 million in revenue for the first time.

• Sale of Torqeedo improved capital position and reduced losses.

Financial highlights

• Order intake rose 4.5% year-over-year to €1.827 billion, mainly due to M&A effects.

• Adjusted EBIT margin fell to 4.2%, down 2.8 percentage points year-over-year.

• Free cash flow before M&A was €30 million, down 58.8% year-over-year.

• Net income from continuing operations was €41.8 million (2023: €106.9 million); EPS at €0.32–0.39.

• Dividend proposed at €0.17 per share, totaling €23.4 million payout.

Outlook and guidance

• 2025 revenue expected between €2.1–2.3 billion, with adjusted EBIT margin of 5–6%.

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

• Cost savings of at least €20 million from Future Fit program anticipated.

• Midterm (2028) targets: revenue €3.2–3.4 billion, EBIT margin 8–9%, and continued dividend growth.

• 2030 ambition: 10% EBIT margin, strong growth in Solutions and Service segments.