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Original-Research: Deutz AG - from Quirin Privatbank Kapitalmarktgeschäft

20.11.2025 / 16:57 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

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The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Deutz AG

Company Name: Deutz AG

ISIN: DE0006305006

Reason for the research: update

Recommendation: Buy

from: 20.11.2025

Target price: 10.00

Last rating change:

Analyst: Klaus Soer

Mixed Q3/25 - Growth path intact

DEZ Q3/25 came in with a mixed picture. Order intake in Q3/25 declined by

15.3% yoy. to EUR 470.4m. Q3/23 sales growth of 14.6% yoy. to EUR 493.3m i

largely related to the first-time consolidation of acquired new operations.

DEZ achieved an Q3/25 (adj.) EBIT of EUR 28.4m (EBIT margin 5.8%) which

nearly quadrupled vs. the weak previous year quarter. The growing margin i

largely supported by the impacts of the recent cost and efficiency

optimisation programs. While major distribution markets like agriculture and

construction machinery remain weak, we expect DEZ continue to grow due to

the most recent value enhancing acquisitions. This includes the new acquired

service operations and the investments into the new defence segment. FY 25

sales should reach about EUR 2,100m (+15.8% yoy.) Adj. EBIT might reach a

level of EUR 111m, with a growing EBIT margin of 5.3%. Upcoming FY26 should

lead to an acceleration of growth on all relevant KPI, mainly driven by the

newly acquired operations in the high margin service segment. The most

recent acquisitions of Sobek in the defence segment (electrical drive

systems and components for UAV's) and the participation of DEZ in the next

financing round of ARX (unmanned ground vehicles, UGVs) are of strategic

importance and will extend the fast-growing defence unit of DEZ. We see DEZ

continuously in the transformation phase into products and services which

offer a higher profitability and industrial growth prospects. Our updated

DCF Valuation which include the most recent equity raise (10% rise in share

capital) still indicate a significant upside to the TP of EUR 10.00. This i

largely backed by an international peer comparison. DEZ trades currently

with large discounts to its international peers. Especially the pick up in

sales growth and margins might support the stock to close the value gap.

Rec. remains Buy.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=5d70a159e3a74b2215632f1533ecded9

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

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2233716 20.11.2025 CET/CEST

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