Half Year 2025 DEUTZ AG Earnings Call Transcript
Key Points
- Deutz AG (DEUZF) reported a 30% year-over-year increase in new orders, surpassing EUR1 billion, driven by acquisitions and strong demand in the energy business unit.
- Revenue grew by 15% year-over-year, also exceeding EUR1 billion, supported by mergers and acquisitions and growth in the service business.
- The company successfully launched the DEUTZ 3.9 engine, co-developed with John Deere, which has received strong demand from international OEMs.
- Deutz AG (DEUZF) is expanding its service business, including becoming the authorized technical service partner for JLG in Spain and expanding its network in the US.
- The Future Fit program is on track to achieve EUR550 million in sustainable structural cost reductions by the end of 2026, with EUR10 million in savings already realized in H1 2025.
- The EBIT margin decreased by 1% year-over-year to 4.7%, impacted by low production volumes in the heritage engine business.
- Despite the positive trend, the engine demand remains weak, posing challenges to the company's core business.
- The new technology business unit is still in the development phase, with low revenue and a negative EBIT of EUR18.2 million year-to-date.
- The company faces potential risks from US tariffs on European exports, which could impact demand and profitability.
- The hydrogen engine market demand remains low, leading Deutz AG (DEUZF) to scale back R&D efforts in this area.
Ladies and gentlemen, and a warm welcome to the H1 2025 conference call of the DEUTZ AG. Please note that this call is being recorded and a replay will be available on deutz.com later today. Your participation in the call implies your content to this. In Cologne, I'm pleased to welcome DEUTZ CEO, Sebastian Schulte; and CFO, Oliver Neu.
Sebastian will begin the presentation with the key figures of the first half year of 2025 and then walk you through the progress made in the business units. Oliver will then provide you with the financial details of H1 and an update on the Future Fit cross program. And Sebastian, again, we'll conclude the presentation with a look on the guidance and which we will move over to the Q&A session. And as always, please note the disclaimer, especially regarding forward-looking statements.
With this, I hand over to you Sebastian.
Yeah, thank you very much, Sarah, and good morning, here
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