Germany's Deutz 9M revenue rises 11%, EBIT up 36%
Overview
Germany industrial drive solutions provider's 9M 2026 revenue rose 11% yr/yr to €1.67 bln
Adjusted EBIT for 9M 2026 surged 36% to €118 mln, margin improved to 7.1%
Company completed FFG acquisition, expects defense segment to add €1 bln revenue in 2027
Outlook
DEUTZ expects 2026 revenue between €2.3 bln and €2.5 bln
Company expects 2026 adjusted EBIT margin at upper end of 6.5% to 8.0% range
DEUTZ forecasts 2026 free cash flow before M&A in high-double-digit mln euros
Result Drivers
SEGMENT GROWTH - Co said revenue and new orders rose across all main segments, with Energy, Service, Defense & Other, and Engines contributing to increases
M&A IMPACT - Acquisitions in Energy and Service segments contributed nearly €235 mln to new orders and €150 mln to revenue
EFFICIENCY PROGRAMS - Co attributed improved adjusted EBIT margin to higher revenue, better plant capacity utilization, and cost savings from efficiency initiatives
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Revenue | €1.67 billion | ||
9M Orders | €1.96 billion |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for DEUTZ AG is €16.00, about 65.4% above its November 4 closing price of €9.68
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)