Deutz AG's Revenue Slips Despite Rising Costs; Board Expects 2025 Revenue of €2.1-€2.3 Billion
Deutz AG, a leading manufacturer of diesel engines, has seen a significant increase in operating costs over the past year. Despite this, the board expects full-year revenue to reach between 2.1 to 2.3 billion euros in 2025.
In the last four quarters, Deutz's revenue stood at over 1.9 billion euros, with operating costs rising to 633 million euros, nearly a third of this revenue. Looking back, Deutz's operating costs in 2023 were 398 million euros, or 19.3% of revenue, but this figure increased to 497 million euros in 2024, representing 27.4% of revenue.
The company's profit has also been affected. In the Trading Twelve Months, Deutz's profit dropped to 24 million euros, with a margin of 1.2%. In 2023, Deutz's profit was 82 million euros, with a margin of almost 4.0%, but this declined to 52 million euros in 2024, with a margin of 2.9%.
Deutz's revenue in 2023 was over 2.0 billion euros, but it dropped to 1.8 billion euros in 2024. Despite this, the board expects full-year revenue to be between 2.1 to 2.3 billion euros in 2025. In the first half of 2025 alone, Deutz's revenue was over 1.0 billion euros.
Deutz's revenue and profit have fluctuated in recent years, with operating costs rising significantly. The company remains on the watchlist until its financial performance improves. Despite these challenges, Deutz aims to transition from being just a component manufacturer to a system provider, with potential long-term benefits through synergy effects. However, the company has not publicly announced any acquisitions in recent years.
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