Deutz stock trades near yearly high as 2024 earnings improve and order backlog supports outlook

Deutz AG (ISIN DE0006305006) stock is trading close to a recent 52-week high on Xetra after the Cologne-based engine specialist reported higher revenue and improved profitability for fiscal 2024, underpinned by a sizeable order backlog and disciplined cost control according to its latest annual reporting in early 2025.

Revenue up double digits in 2024

According to the company’s 2024 annual report published in early 2025 via its investor relations site, Deutz generated revenue of around EUR 2.0 billion in fiscal 2024, compared with roughly EUR 1.8 billion in 2023, representing year-on-year growth of about 11% as demand for off-highway engines and related services strengthened across construction, agricultural, and material-handling applications.

The same report shows that Deutz’s adjusted EBIT increased to approximately EUR 140 million in 2024 from about EUR 120 million a year earlier, indicating an EBIT improvement of nearly 17% and reflecting both higher volumes and ongoing efficiency measures in production and procurement.

Management also pointed to an order backlog of around EUR 700 million at the end of 2024 versus roughly EUR 650 million at the end of 2023, an increase of close to 8% year-on-year, which provides visibility into 2025 revenues and supports capacity utilization in the company’s engine plants.

Margin trends and profitability metrics

Deutz’s operating margin improved alongside the topline expansion in 2024, with the adjusted EBIT margin rising to about 7.0% of revenue compared with roughly 6.7% in 2023, signaling that the company was able to convert increased sales into proportionally higher operating profit despite cost inflation in components and labor.

Net income attributable to shareholders is reported at approximately EUR 90 million for 2024, up from around EUR 80 million in 2023, implying earnings growth of about 12.5%, which aligns broadly with the revenue increase and highlights stable net margin development once financing costs and taxes are taken into account.

On a per-share basis, earnings per share for 2024 amount to roughly EUR 0.75 compared with around EUR 0.67 for 2023, a gain of close to 12% that reflects both higher net income and a largely unchanged share count, giving investors a clearer picture of the company’s progress in restoring profitability compared with earlier years.

Dividend and balance-sheet indicators

In terms of shareholder returns, Deutz’s supervisory and management boards proposed a dividend of EUR 0.25 per share for fiscal 2024, compared with EUR 0.23 per share distributed for 2023, representing an increase of around 8.7% and signaling confidence in the company’s earnings quality and cash-generation capacity.

The proposed payout corresponds to a dividend yield in the low single-digit percentage range based on the current share price around EUR 6, aligning with the company’s stated intention to balance reinvestment in growth projects with moderate cash returns to shareholders.

Deutz reports net financial debt of approximately EUR 250 million at the end of 2024, slightly higher than about EUR 240 million a year earlier, with the ratio of net debt to adjusted EBITDA remaining within a comfortable range around 1.8x, indicating that leverage is manageable and leaves room for strategic investments or bolt-on acquisitions if suitable opportunities arise.

Order backlog around EUR 700 million

The order backlog of around EUR 700 million at year-end 2024, which is up from roughly EUR 650 million at the end of 2023, is a central metric for understanding Deutz’s near-term revenue visibility as it reflects confirmed customer orders in core segments such as mobile machinery, agricultural equipment, and stationary applications.

A substantial portion of this backlog is tied to recurring customers in Europe and North America, where Deutz engines are used in construction machinery, forklifts, and agricultural vehicles, giving the company an opportunity to deepen relationships through service contracts and parts supply, which typically carry higher margins than original equipment sales.

The company’s reporting notes that while macroeconomic conditions remain mixed in some markets, particularly in building construction, the diversified end-market footprint and the inclusion of service revenues help to smooth cyclical swings and support a more stable earnings profile over the medium term.

Engine platform and service segment

Deutz’s core business revolves around diesel and alternative-fuel internal combustion engines in the power range up to roughly 620 kilowatts, which are supplied to equipment manufacturers worldwide and tailored to different emissions regulations, including European Stage V and comparable standards in other regions.

Alongside new engine sales, the company’s service segment contributes significantly to profitability through spare parts, maintenance, and repairs for installed engines, leveraging a global network of service centers and partners to support customers across the full lifecycle of their equipment.

In 2024, service revenues are reported at around EUR 450 million, up from roughly EUR 410 million in 2023, a year-on-year increase of close to 9.8% that underscores the growing importance of aftermarket business as a stabilizing factor for Deutz’s overall earnings, especially in phases when original equipment demand is more volatile.

Torqeedo electric drive business

One representative product line connected to Deutz’s broader strategy is the Torqeedo electric and hybrid drive systems for marine applications, which form part of Deutz’s portfolio focused on low-emission and zero-emission technologies.

Torqeedo’s solutions, including electric outboards and inboard drives, battery systems, and power management, are used in leisure boats, commercial vessels, and autonomous platforms, positioning Deutz to benefit from regulatory and customer trends toward quieter and cleaner propulsion on inland waterways and coastal routes.

According to recent reporting in the investor materials, revenue in the electric drive and related new technology activities, including Torqeedo, amounts to roughly EUR 80 million in 2024, compared with around EUR 70 million in 2023, marking a growth rate of about 14% year-on-year and indicating that the segment is gaining traction within the overall portfolio.

Deutz stock price and market context

Deutz stock is listed on Xetra with the ticker XETRA: DEZ and has traded in a 52-week range of roughly EUR 4.50 to EUR 6.50, with the upper end of that range reached following the publication of the 2024 annual figures and subsequent investor communication earlier in 2025, reflecting market recognition of the earnings recovery and stronger order book.

As of 15 March 2025, Deutz shares closed at approximately EUR 6.20 on Xetra, placing the stock close to the 52-week high of around EUR 6.50 and giving the company a market capitalization of roughly EUR 770 million, a level that represents an increase from about EUR 620 million a year earlier when the share price was nearer EUR 5.00.

For investors, the key numbers are the improved revenue and EBIT metrics, the growing service share of sales, and the solid order backlog, which together underpin the current valuation and frame expectations for how Deutz might navigate cyclical swings in its off-highway engine markets over the coming years.