DEUTZ AG Reports Resilient Q1 2024 Financial Results

DEUTZ AG announced its financial results for the first quarter of 2024, showcasing a stable adjusted EBIT margin of 6.1% despite decreased demand, primarily due to the challenging economic climate. The company's revenue from continuing operations stood at €454.7 million, reflecting a 10.3% decline from the same period in 2023. This decline was less pronounced compared to the fall in unit sales and new orders, indicating effective pricing strategies and a strong performance in the service segment.

New orders decreased by 18.7% year-over-year, but showed a significant increase compared to the previous quarter. The company's partnership moves, including the integration of Rolls-Royce Power Systems sales and service activities and an alliance with Daimler Truck, are key highlights of its Dual+ strategy, aiming to enhance DEUTZ’s market position and revenue.

Despite the dip in overall new orders and unit sales, DEUTZ registers a positive outlook with confirmed guidance for 2024, expecting revenue between €1.9 billion and €2.1 billion and an adjusted EBIT margin of 5.0% to 6.5%. The company’s strategic measures, particularly in its service business, are set to reach an annual revenue target of approximately €600 million by 2025. Additionally, the completed sale of the Torqeedo Group marks a significant step in the company’s portfolio restructuring.