DEUTZ AG Q1 2025: Key Takeaways
Presented by IR Mark Schneider
In this concise and data-rich quarterly update, Mark Schneider, Head of Investor Relations of DEUTZ AG, presents the key financial highlights and operational performance for Q1 2025, offering insights into how the company maintains momentum amid ongoing macroeconomic volatility.
Stable Start to 2025
DEUTZ AG, a leading manufacturer of innovative drive systems, commenced 2025 with a robust and stable first quarter, bolstered by the strength of its service business and operational discipline. This positive start sets a promising tone for the rest of the year.
Q1 Revenue and Order Intake
The company posted revenue of €474.3 million, representing a slight decline of 3.8% year-on-year, largely attributable to a normalization in engine demand following an exceptionally strong prior-year period. However, the impact was partially offset by ongoing growth in the service segment, which remains a strategic priority for DEUTZ and continues to deliver attractive margins.
Despite the slight dip in new orders, which came in at €465.1 million, DEUTZ remains steadfast in its full-year outlook. The company’s healthy order backlog and sustained demand in key regions instil confidence in its ability to weather market fluctuations and maintain its growth trajectory.
Free Cash Flow and Operational Efficiency
One of the quarter’s standout achievements is the significant improvement in free cash flow, which rose to €27.3 million, compared to a negative figure in the same quarter last year. This reflects tighter working capital management, optimized inventory levels, and prudent capital expenditures.
Profitability and EBIT Margin
In terms of profitability, DEUTZ reported an EBIT margin before exceptional items of 4.8%, slightly below the 5.0% seen in Q1 2024. This was mainly due to shifts in the product mix and volume effects. IR Mark Schneider emphasizes that this is well within expectations and consistent with seasonal trends in the company’s order intake and production cycles.
Dual Transformation Strategy
DEUTZ continues to invest in its dual transformation strategy:
Drive diversification, focusing strongly on alternative powertrains, including hydrogen and electric solutions.
Service expansion aimed at building a more resilient and margin-rich revenue base.
2025 Guidance and Strategic Outlook
CFO Schneider reaffirms DEUTZ’s commitment to achieving its 2025 guidance, which includes:
Stable revenue in the range of €1.8 to €1.9 billion
An EBIT margin of at least 5% before exceptional items
Positive free cash flow for the full year
He also highlights that DEUTZ is well-positioned to navigate inflationary pressures and supply chain risks, thanks to its global supplier network and continuous improvement in operational processes.
Conclusion: Operational Resilience and Strategic Execution
In closing, Mark Schneider reiterates that Q1 2025 performance reflects operational resilience, strategic focus, and a balanced approach to growth and cost control. As DEUTZ continues its transformation journey, it remains on track to deliver sustainable value for shareholders, customers, and employees.
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