DEUTZ felt the effects of the persistent, cyclical weakness in demand in 2024, but nevertheless ended the year successfully following a stable fourth quarter. This is shown by the results published today, according to which DEUTZ has met the guidance, as adjusted in October 2024. With revenue down by 12.1% to €1,813.7 million, the Company achieved adjusted earnings of €76.7 million. This corresponds to an adjusted EBIT margin of 4.2%, which is a level of margin that DEUTZ had previously achieved only when production was running at significantly higher capacity utilization. At €1,827.1 million, new orders were 4.4% higher than in the previous year, mainly due to the successful development of the portfolio.
In 2024, DEUTZ acquired the US genset manufacturer Blue Star Power Systems and took over the off-highway business for selected Daimler Truck engines from Rolls-Royce Power System. In addition, the sale of the subsidiary Torqeedo, which was completed in spring 2024, relieved a considerable amount of pressure on the Group's results.
"The economic environment took a considerable toll on us over the past financial year, as demonstrated by a look at practically all of our sales markets. The good news is that we are making money even in these difficult times," said DEUTZ CEO Dr. Sebastian C. Schulte in a press release. "Our strategy of putting DEUTZ on a progressively broader and more resilient footing is already paying off. We will therefore position ourselves even more strongly as a solution provider along the value chains we are familiar with. At the same time, we see considerable potential for further profitable expansion of our business with traditional internal combustion engines and our service business."
The core of the Dual+ strategy, which was further developed in 2024, is a greater diversification of the portfolio. By entering the market for decentralized energy supply, adopting a demand-driven position in the field of alternative drive systems and expanding its global service business, DEUTZ has already reached some important milestones. As the Company continues to implement the strategy, it aims to increase revenue to around €4 billion by 2030.
DEUTZ also began implementing an efficiency program over the past financial year with the aim of strengthening its profitability. The program is intended to achieve a reduction of 300 jobs with minimum social impact and to reduce operating costs, thus going beyond the measures taken at short notice in 2024. The aim is to reduce costs on a sustainable basis by the end of 2026.
"The cost-cutting measures that we introduced at short notice led to savings of just over €15 million last year. Our task now is to expand the measures already taken and to consolidate them. And this is precisely the objective of our Future Fit program, under which we intend to achieve a lasting reduction in our cost base of €50 million per year," said DEUTZ CFO Oliver Neu, who is overseeing the program in cooperation with an interdisciplinary team.
