Deutz’s Hydrogen Trucks Hit the Road as Defense Ambitions and Earnings Test Converge

Two hydrogen-powered 18-tonne trucks are now hauling goods through the factories of Deutz and BMW, marking the first real-world deployment of the Cologne-based engine maker’s alternative-fuel technology. The vehicles, handed over at the end of March, are part of the HyCET project and represent a €19.5 million investment — €11.3 million of which comes from Germany’s federal transport ministry. Built on a Daimler Econic chassis and retrofitted by IAV as the general contractor, the trucks run on Deutz hydrogen combustion engines, a deliberate alternative to fuel cells that promises fast refuelling and high load capacity.

The operational milestone arrives just as Deutz enters a pivotal stretch on the calendar. On 7 May, the company will publish its first quarterly report under a newly carved five-division structure — Defense, Energy, Engines, NewTech and Service — followed by the annual general meeting on 13 May at Cologne’s Gürzenich hall. Shareholders will vote on a proposed dividend of €0.18 per share, up from €0.17 last year, with payment scheduled for 18 May.

Defense Push Gains Momentum

The most visible sign of Deutz’s strategic overhaul will appear this summer at the Eurosatory defence exhibition in Paris, where the company plans to unveil an 800-kilowatt powerpack for 8×8 armoured vehicles and main battle tanks. Developed in partnership with a leading transmission manufacturer, the V8-based system extends Deutz’s previous ceiling of 600 kilowatts and is being funded entirely from internal resources.

The ambition is clear: the Defense division is targeting 10% of group revenue by 2030, when Deutz aims for total sales of €4 billion. That would represent roughly a tenfold increase from current levels, buoyed by rising NATO defence budgets across Europe.

Energy and India Add Another Growth Layer

Alongside defence, Deutz is building out its Energy division. The acquisition of Frerk Aggregatebau has opened a route into the backup-power market for data centres, with a target of €500 million in Energy revenue by 2030. Meanwhile, a licensing deal with Indian manufacturer TAFE Motors will shift production of up to 30,000 smaller combustion engines annually to Rajasthan, cutting manufacturing costs and providing a foothold in the Asia-Pacific region.

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The hydrogen trucks fall under the NewTech division, which was created at the start of the year to house zero-emission technologies. Deutz argues that hydrogen combustion engines qualify as zero-emission vehicles while offering advantages over fuel cells in heavy-duty applications.

Tariffs: A Manageable Headwind

US import tariffs of 15% apply to roughly half of the 30,000 engines Deutz ships annually to North America. CEO Sebastian Schulte has opted to pass the additional costs on to American customers. The company sees no economic case for setting up local US production at current volumes. Crucially, its main US competitors — from Britain and Japan — face the same tariff barriers, levelling the playing field.

Financials and the Share Price Picture

The underlying numbers have been improving. Revenue grew 12.7% to €2.04 billion in 2025, while adjusted EBIT jumped roughly 46% to €112.3 million. The “Future Fit” cost-cutting programme has already delivered over €25 million in savings. Management’s 2026 guidance targets revenue between €2.3 billion and €2.5 billion, with an adjusted EBIT margin of 6.5% to 8.0%.

The stock closed Friday at €10.01, down 4.3% on the day. Despite the short-term dip, the shares have gained roughly 51% over the past twelve months, though they remain nearly 20% below the 52-week high of €12.46 reached in February. The relative strength index sits at 39.7, indicating weak short-term momentum.

Analysts will scrutinise the 7 May report for evidence that the defence and energy divisions are already generating measurable contributions, rather than remaining strategic promises. It will be the first earnings release to offer a clear window into the performance of each of the five new segments — and the first real test of whether Deutz’s restructuring is more than a reorganisation chart.