DEUTZ generates double-digit growth in the first half of 2026 – 2030 targets will be achieved significantly earlier thanks to a billion-euro transaction

• New orders rise by approximately 29% – Revenue grows by approximately 11% to €1.12 billion

• Adjusted EBIT increased by approximately 43% to just under €80 million; adjusted EBIT margin improved from 5.5% to 7.1%

• Strategic milestone in the Defense business: Agreement reached to acquire military vehicle manufacturer FFG

• FFG acquisition will accelerate profitable growth: Strategic revenue and margin targets for 2030 of €4 billion and 10% respectively, are expected to be achieved significantly earlier

Cologne, August 6, 2026 – DEUTZ once again posted significant growth in new orders, revenue, and earnings in the first half of 2026: Compared with the same period last year, new orders rose by 28.7% to €1,331.3 million, and consolidated revenue increased by 10.7% to €1,115.3 million. Adjusted EBIT (EBIT before exceptional items) improved by 43.1% to €79.7 million, while the adjusted EBIT margin rose from 5.5% to 7.1%. DEUTZ has thus continued on its growth trajectory despite a market environment that remains challenging and has once again increased its profitability.

“DEUTZ is achieving double-digit growth in new orders, revenue, and earnings – and this in a market environment that remains challenging given the geopolitical situation. The strategic transformation of the Group is increasingly paying off: Our growth areas Service and Energy are making strong contributions – and the agreed-upon acquisition of FFG is a real game-changer for our profitably growing Defense business: We are expanding it into a key pillar of the Group and will thus achieve our revenue and margin targets for 2030 significantly ahead of plan,” says DEUTZ CEO Dr. Sebastian Schulte.

Business performance in the first half of the year was driven primarily by the Engines, Service, and Energy business units. The Future Fit cost program in the business unit Engines also made a noticeable contribution to the increase in profitability and is proceeding fully according to plan.

“Our increased profitability shows that our cost discipline is paying off. In addition to the positive revenue trend, our Future Fit program in particular helped boost adjusted EBIT by more than 40 percent. The turnaround in the Engines business is a particularly clear indication that our measures are taking effect. Its adjusted EBIT is improving steadily and more than quintupled during the reporting period – albeit still at a low level. On this basis, we confirm our forecast for the full year 2026,” says DEUTZ CFO Oliver Neu.

DEUTZ accelerates strategic transformation: FFG acquisition is a game-changer for the Defense business; Energy business further expanded

DEUTZ is significantly advancing its strategic transformation through a billion-euro transaction: In early July, the Company signed an agreement to acquire 100% of the shares in FFG Flensburger Fahrzeugbau Gesellschaft mbH. FFG develops, modernizes, and maintains military vehicles – ranging from armored recovery vehicles and infantry fighting vehicles to armored personnel carriers and and special-purpose vehicles – and is one of Europe’s leading providers of military ground vehicles and special-purpose vehicles. With more than 1,100 employees, the company is one of the German Armed Forces’ most important partners, a supplier to the armed forces of more than 15 nations, and the backbone of approximately 30 vehicle platforms.

DEUTZ had already strategically positioned itself in the defense sector with the acquisition of SOBEK in 2025; in early July 2026, as part of a strategic partnership with ARX Robotics, industrial series production began on the GEREON, an unmanned ground system for use on the battlefield. Through the acquisition of FFG, DEUTZ is now becoming a key player in this market: FFG brings its vehicle and platform expertise as well as access to long-term defense programs, while DEUTZ contributes its expertise in drive systems, energy, and industrialization, along with a global service network. This creates a leading provider of military vehicles, drive systems, and energy solutions – made in Germany.

The transaction has a value of approximately €1.6 billion and is to be settled partly in cash and partly through the issuance of new DEUTZ shares to FFG’s existing owner families, who would thereby hold up to 29.9% of the shares in DEUTZ AG as long-term anchor shareholders. Completion of the transaction is subject, among other things, to shareholder approval of the planned capital increase in exchange for a contribution in kind at the extraordinary general meeting on August 24, 2026.

“FFG is set to form the core of our Defense business going forward, with all business units able to benefit from synergies and new market access. Through this acquisition, we are once again increasing our resilience and moving into a whole new league in terms of revenue and earnings. FFG alone is expected to generate revenue of over one billion euros next year - with a margin of over 20%. In doing so, we are creating sustainable added value for our shareholders as well,” emphasizes Schulte.

Furthermore, DEUTZ also drove forward the expansion of its Energy business in the first half of the year: Following the acquisition of Frerk Aggregatebau in February, DEUTZ acquired Maxi Trust Power, a Brazilian manufacturer of gas and diesel generators, in early June. In doing so, DEUTZ is strengthening its market position in Latin America, expanding its global network as a provider and system integrator of decentralized energy supply solutions, and complementing its corresponding product portfolio. The business unit Energy is expected to contribute profitable revenue of over €300 million to consolidated revenue already in the current fiscal year and is expected to grow to over €1 billion revenue over the next five years. 

The expansion of the Service business is also progressing: In early June, DEUTZ acquired the U.S. company G&T Truck Repair, thereby expanding its aftermarket presence in the United States.

Key figures for the first half of 2026 in detail

DEUTZ recorded strong new orders of €1,331.3 million in the first half of 2026 (H1 2025: €1,034.1 million). This growth in orders was driven by the Group’s three largest business segments: Engines, Service, and Energy. While the Engines segment benefited, among other things, from slight signs of market recovery – particularly in the construction equipment sector – the Service segment was able to significantly increase its order volume through the continued focused implementation of regional growth initiatives – both organic and inorganic. The Energy business, which has been significantly expanded since 2024 and accounted for approximately 20% of Group-level new orders during the reporting period, contributed more than half of this increase. Frerk Aggregatebau, acquired in early February, accounted for just under €160 million of this figure. 

The DEUTZ Group’s orders on hand totaled €713.6 million at the end of the first half of the year, remaining at a very high level (June 30, 2025: €490.9 million).

DEUTZ also posted a significant increase in revenue compared with the same period last year, rising from 10.7% to €1,115.3 million. All segments contributed to this growth – led by DEUTZ Energy with a revenue increase of approximately €37 million, followed by Service with +€28 million, Engines with +€23 million, and Defense & Other with +€17 million.

Adjusted EBIT (EBIT before exceptional items) rose significantly during the reporting period by 43.1% to €79.7 million (H1 2025: €55.7 million). This increase of €24 million is attributable, in part, to the significant rise in earnings in the Engines segment: as a result of revenue growth and improved plant capacity utilization, positive product mix effects, and cost savings realized through the Future-Fit program, its adjusted EBIT rose significantly by €19.6 million to €24.3 million compared with the prior-year period (H1 2025: €4.7 million). The Service segment continued to account for the largest share of adjusted EBIT at €51.4 million (H1 2025: €50.7 million). The rapidly growing Energy segment and Defense & Other contributed €12.3 million and €5.2 million respectively, and already achieved profit margins of 10.6% and 10.0% respectively – significantly above the Group’s margin. However, due to the build-up of structural costs in anticipation of further growth, earnings growth was slightly dampened compared with revenue growth. Looking ahead to the second half of the year, further increases in revenue and earnings are therefore expected. The NewTech segment has not yet reached the break-even point and thus continues to weigh on adjusted EBIT at Group level. However, through a market-oriented focus on R&D projects combined with stringent cost management, it was possible to achieve a noticeable improvement of €5.9 million to a loss of €13.5 million (H1 2025: -€19.4 million). In line with the increase in adjusted EBIT, the adjusted EBIT margin at the Group level improved significantly from 5.5% to 7.1%. 

Cash flow from operating activities amounted to €31.9 million in the first six months of the current fiscal year (H1 2025: €60.8 million). The fact that it remained below the prior-year level despite the positive earnings trend is primarily attributable to higher inventory levels driven by order volume and seasonal factors. In addition, higher payments of performance-based salary and wage components, as well as severance payments from the Future Fit program, also contributed to this. 

Free cash flow before M&A amounted to €-29.7 million (H1 2025: €14.4 million) as a result of the trend in cash flow from operating activities. 

Business outlook for 2026

DEUTZ continues to expect consolidated revenue of between €2.3 billion and €2.5 billion in 2026, along with an adjusted EBIT margin of between 6.5% and 8.0%. Free cash flow before M&A expenditures is still expected to be in in the high double-digit millions of euros.

The interim report is available at www.deutz.com/en/investor-relations.

Upcoming Dates
August 24, 2026: Extraordinary Virtual General Meeting
November 5, 2026: Quarterly Statement for the first to third quarters of 2026

1. Completion of the transaction is dependent on agreement for the planned capital increase in return for a non-cash contribution being obtained from the shareholders at the Extraordinary General Meeting and, among other things, on the necessary approvals being granted by the relevant authorities. The transaction is expected to be completed in late 2026 or in the first quarter of 2027.

2. Rounded values.

3. To improve the comparability of the company’s operating profitability over time, exceptional items have also included effects from purchase price allocations (M&A transactions) since fiscal year 2026. The prior-year figure for the adjusted EBIT has been adjusted accordingly from €47.1 million to €55.7, the adjusted EBIT margin from 4,7 % to 5,5 %.  Exceptional items H1 2026: €-28.8 million, largely related to costs in connection with the restructuring program, the effects of purchase price allocations, and costs attributable to strategic projects and acquisitions. Exceptional items H1 2025: expense of €-37.4 million, largely related to costs in connection with the restructuring program and the effects of purchase price allocations.

4. To improve the comparability of the Company’s operating profitability over time, exceptional items have also included effects from purchase price allocations (M&A transactions) since 2026. The prior-year figures for the metrics adjusted for exceptional items in this table and the following tables have been adjusted accordingly.

5. Prior-year figures: €94.5 million and €49.9 million respectively.

6. Prior-year figures: 9.4% and 9.6% respectively.

7. Prior-year figures: €47.1 million and €26.1 million respectively.

8. Prior-year figures: 4.7% and 5.0% respectively.

9. Prior-year figures: -€28.8 million and -€3.8 million respectively.

10. Cash flow from operating activities and investing activities, net of interest expense.

11. Cash and cash equivalents less current and non-current interest-bearing financial liabilities.

12. Inventories plus trade receivables minus trade payables.

13. Working capital as the average of the last four quarterly reporting dates relative to revenue for the past twelve months.

14. Investments in property, plant, and equipment (including rights of use from lease agreements) and intangible assets, excluding capitalized development costs related to the product portfolio.

15. Research and development expenses (net of grants) as a percentage of revenue.

16. Number of employees in FTEs (Full-Time Equivalents).

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