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1. Company Snapshot

1.a. Company Description

DEUTZ Aktiengesellschaft manufactures diesel and gas engines in Europe, the Middle East, Africa, the Asia Pacific, and the Americas.It operates through three segments: DEUTZ Compact Engines, DEUTZ Customized Solutions, and Other.The DEUTZ Compact Engines segment provides servicing of liquid-cooled engines with capacities of up to 8 liters.


The DEUTZ Customized Solutions segment offers air-cooled drives and liquid-cooled engines with a capacity exceeding 8 liters; and reconditioned exchange engines and parts.The Other segment is involved in manufacturing electric and hybrid drive systems for marine applications under the Torqeedo brand; and development of battery management hardware and software products under the Futavis name, as well as focuses on the electrification of drive systems and electric-powered watercraft.The company also offers installation, maintenance, and repair services for engines.


Its products are used in various applications, such as construction equipment, agricultural machinery, material handling equipment, ground support equipment, stationary equipment, commercial vehicles, rail vehicles, boats, and other applications.The company was founded in 1864 and is headquartered in Cologne, Germany.

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1.b. Last Insights on DEZ

DEUTZ Aktiengesellschaft's recent performance has been driven by its attractive dividend yield, offering investors a stable income source in a volatile market. According to a recent article, the company is one of three reliable dividend stocks offering at least a 3.4% yield, making it an attractive proposition for investors seeking stability. Additionally, a recent article highlighted DEUTZ as a top dividend stock to consider for a portfolio, citing its ability to provide consistent returns amidst market uncertainty.

1.c. Company Highlights

2. DEUTZ AG Delivers Strong 9M 2025 Results

DEUTZ AG reported a robust 9M 2025 financial performance, with revenue growing 15% year-over-year, driven by the company's broader portfolio and transformation towards innovative and sustainable mobility and energy solutions. The adjusted EBIT margin stood at 5.0%, with the third quarter being the strongest of the year. Earnings per share (EPS) came in at €0.08, beating estimates of €0.06. As CFO Oliver Neu noted, "cost savings are paying off, with EUR 75.5 million or 5.0% adjusted EBIT margin year-to-date."

Publication Date: Nov -29

📋 Highlights
  • Revenue Growth:: 15% year-over-year increase driven by construction, agriculture, and M&A activity.
  • EBIT Margin:: 5.0% adjusted EBIT margin year-to-date, supported by EUR 75.5 million in cost savings from Future Fit program.
  • Order Intake:: 11.8% growth Y/Y, with EUR 470 million order backlog and book-to-bill ratio around 1.
  • Service Expansion:: 50% efficiency gain in Cologne logistics center and 3 acquisitions (Catalkaya, OnSite Diesel).
  • Defense/Portfolio:: New 24L and 6L engines, SOBEK acquisition, and Arx Robotics partnership to drive future growth.

Segmental Performance

The company's defense segment saw significant growth, with the acquisition of SOBEK Group and a strategic partnership with Arx Robotics. The service business also continued to expand, with three acquisitions and a 50% increase in efficiency at the global logistics center in Cologne. The energy business, particularly Blue Star, is expected to be stronger in the fourth quarter than in the third quarter.

Outlook and Guidance

DEUTZ AG confirmed its guidance for 2025, with a revenue range of €2.1 billion to €2.3 billion, specifying that it now expects to arrive at the lower end of this guidance, around €2.1 billion. The company also confirmed its adjusted EBIT margin range. Analysts estimate next year's revenue growth at 14.0%, indicating a continued strong performance.

Valuation

With a P/E Ratio of 46.35 and an EV/EBITDA of 11.3, the market appears to be pricing in a significant growth premium. The company's ROE stands at 2.88%, while ROIC is at 13.69%, indicating a healthy return on invested capital. The dividend yield is 2.14%, providing a relatively stable income stream. As DEUTZ AG continues its transformation and expands into new markets, investors will be watching to see if the company can sustain its growth momentum.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.50%)

6. Segments

DEUTZ Classic

Expected Growth: 6.5%

DEUTZ Classic's 6.5% growth is driven by increasing demand for high-performance engines in the agricultural and construction industries, coupled with the company's strategic expansion into emerging markets, innovative product offerings, and operational efficiency improvements.

DEUTZ Green

Expected Growth: 7.5%

DEUTZ Green's 7.5% growth is driven by increasing demand for sustainable and eco-friendly engine solutions, government incentives for emission-reducing technologies, and strategic partnerships with leading OEMs in the agricultural and construction industries.

7. Detailed Products

DEUTZ Diesel Engines

DEUTZ offers a wide range of diesel engines for various applications, including construction equipment, agricultural machinery, and material handling.

DEUTZ Natural Gas Engines

DEUTZ natural gas engines are designed for stationary power generation, oil and gas, and industrial applications.

DEUTZ Hybrid Engines

DEUTZ hybrid engines combine diesel and electric power to reduce emissions and increase efficiency.

DEUTZ E-DEUTZ Electric Drivetrain

DEUTZ E-DEUTZ is an electric drivetrain solution for off-highway applications.

DEUTZ Service and Support

DEUTZ offers comprehensive service and support for its engines and products, including maintenance, repair, and training.

8. DEUTZ Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for DEUTZ Aktiengesellschaft is medium due to the presence of alternative engine technologies and fuel types. However, the company's focus on diesel engines and its established market position mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to DEUTZ Aktiengesellschaft's strong relationships with its OEM customers and the customized nature of its engine products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the concentration of suppliers in the industry and the importance of key components such as fuel injection systems and turbochargers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the engine manufacturing industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the engine manufacturing industry, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.18%
Debt Cost 6.54%
Equity Weight 79.82%
Equity Cost 11.62%
WACC 10.59%
Leverage 25.28%

11. Quality Control: DEUTZ Aktiengesellschaft passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Manitou BF

A-Score: 6.2/10

Value: 7.9

Growth: 7.2

Quality: 3.4

Yield: 8.8

Momentum: 6.0

Volatility: 4.0

1-Year Total Return ->

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Stemmer Imaging

A-Score: 4.7/10

Value: 1.1

Growth: 8.0

Quality: 5.3

Yield: 3.8

Momentum: 6.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Sabaf

A-Score: 4.6/10

Value: 5.6

Growth: 3.6

Quality: 3.4

Yield: 5.6

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

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Piovan

A-Score: 4.4/10

Value: 1.7

Growth: 6.7

Quality: 5.6

Yield: 1.9

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
DEUTZ

A-Score: 4.4/10

Value: 4.7

Growth: 3.1

Quality: 3.0

Yield: 4.4

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Starrag

A-Score: 4.0/10

Value: 8.5

Growth: 2.7

Quality: 3.6

Yield: 5.6

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.02$

Current Price

8.02$

Potential

-0.00%

Expected Cash-Flows