Strong start to 2023 for Deutz

Deutz AG has reported a strong first quarter, with preliminary financial results showing increases in orders, revenue and earnings.

German engine and power systems manufacturer Deutz AG has reported strong prelimary results for the first quarter of 2023. (Photo: Deutz)

New orders rose by more than 3% to €526 million versus €509.6 million in the first quarter of 2022. Consolidated revenue grew by 15.5% to around €517 million (€447.9 million in Q1 of 2022), while preliminary earnings before income and taxes (EBIT) and exceptional items was approximately €32 million, nearly double the €15.8 million from the same period last year and is well above the market expectation of €27.9 million.

“It is very evident from the good business performance in the first quarter that our measures are taking effect and that we have set the right course with our new strategy,” said Deutz CEO Dr. Sebastian C. Schulte. “The clear focus on clean internal combustion engines, new green technologies, and the expansion of our global service business is laying solid foundations for the future of Deutz.”

As a result of the strong start, Deutz is refining its guidance for 2023 and the company now expects that its results for 2023 will be at the upper end of the most recently issued forecast ranges. Published in March, those forecasts were for unit sales of between 175,000 and 195,000 engines, a corresponding revenue increase of between €1.9 billion and €2.1 billion, and an adjusted EBIT margin of between 4 and 5%.

The full quarterly statement for the first quarter of 2023, including the final results, will be published May 4,