Deutz sees itself on track in its transformation into a provider of innovative mobility and energy solutions. Although the Cologne-based company shifted its revenue outlook for 2025 toward the lower end of the forecast range when presenting its interim report, the profitability target remains intact. Deutz continues to aim for a margin in the middle of its target corridor of 5 to 6% for the adjusted operating result before interest and taxes.

Even though demand in the traditional engine business remains weak, the company is managing to offset the decline with other activities. The expansion of the service business in particular is paying off. Deutz made several acquisitions in that area in 2025. The company also completed takeovers in the defence sector, positioning itself for the future. However, the figures are only partially comparable due to these acquisitions, since Deutz does not report adjusted numbers.

At the same time, the company is beginning to reap the first benefits of the cost reduction programme launched in 2024, although it initially led to one-time charges. Restructuring expenses amounted to 25 million euros in the first three quarters, with special items totalling 35.4 million euros. The „Fit for Future“ programme aims to reduce the cost base by more than 50 million euros by the end of 2026, with half of that expected to be realised this year.

In the third quarter, group revenue rose by nearly 15% to 493 million euros, while the adjusted operating result before interest and taxes quadrupled to 28.4 million euros. The margin increased to 5.8%. Net income came in at 12 million euros, compared with a loss in the same period last year. However, free cash flow was significantly negative at minus 132 million euros for the quarter and resulted in an outflow of 127 million euros over the first nine months. Before acquisitions, free cash flow stood at plus 2.4 million euros. For the full year, the company expects free cash flow before acquisitions to reach a positive double-digit million amount.

The acquisitions have led to a higher debt ratio. Net debt to adjusted Ebitda stood at 1.4 at the end of September, a level the company still considers solid. Looking ahead, Deutz is examining various options for further acquisitions, but will continue to act with discipline, Chief Executive Sebastian Schulte emphasised.