In This Article:
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Order Intake: EUR1.827 billion, up 4.5% year-over-year.
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Revenue: EUR1.814 billion, down 12% year-over-year.
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EBITDA: 4.2%, down 2.8% year-over-year.
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Free Cash Flow Before M&A: EUR30 million, down 58.8% year-over-year.
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Unit Sales: 140,000 units, below the guidance of 150,000 units.
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Net Income: EUR41.8 million, down from EUR82 million the previous year.
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Earnings Per Share: EUR0.39, down from EUR0.66 the previous year.
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R&D Spending: 5.1% of sales.
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CapEx: EUR102.4 million, down 12% year-over-year.
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Working Capital: EUR383 million, 21.1% of sales.
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Dividend Proposal: EUR0.70 per share.
Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deutz AG (DEUZF) reported a 4.5% year-over-year increase in new orders, reaching EUR1.827 billion.
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The service business surpassed EUR500 million in revenue for the first time, indicating strong growth in this segment.
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The acquisition of Blue Star Power Systems contributed significantly to revenue, with expectations of continued growth in the energy business.
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The company successfully completed the takeover of the Daimler Truck business, expanding its engine portfolio and customer base.
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Deutz AG (DEUZF) launched a Future Fit program targeting sustainable savings of EUR50 million from 2026 onwards, aiming to improve long-term competitiveness and profitability.
Negative Points
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Revenue decreased by 12% to EUR1.814 billion, primarily due to a significant decline in sales in Europe, particularly in the construction and agricultural sectors.
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EBITDA decreased by 2.8% year-over-year, reflecting challenges in maintaining profitability amidst a difficult economic environment.
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Free cash flow before M&A was down 58.8% year-over-year, indicating cash flow challenges.
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The company faced a decline in unit sales by 23.6%, with almost 143,000 units sold, highlighting a challenging market environment.
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Net income decreased to EUR41.8 million from EUR82 million the previous year, impacting earnings per share.
Q & A Highlights
Q: Can you confirm the expected revenue from the Rolls-Royce acquisition service business for 2025? A: Yes, the service business from the Rolls-Royce acquisition was around EUR5 million in 2024, and we expect it to be around EUR30 million for 2025 due to a longer consolidation period. The parts were transferred later, which delayed the revenue impact. - Sebastian Schulte, CEO
Q: Is the expected market recovery in the second half of 2025 included in your current outlook? A: Yes, our forecast is based on a bottom-up approach, considering customer feedback and market data. However, the effects of government programs like the German package are not yet fully reflected due to the time it takes for such initiatives to impact the market. - Sebastian Schulte, CEO