DEUTZ: Placement triggers FFG top-up right; pro forma share count rises to 239.5m

Research evidence excerpt

15 September 2026

Pal Skirta

European Capital Goods

DEUTZ AG

Rating

Outperform

Price Target

MIDCAPS

DEZ.GR

12.40 EUR (12.56 OLD)

DEUTZ: Placement triggers FFG top-up right; pro forma share

count rises to 239.5m

DEUTZ announced a 10% cash capital increase after Monday’s close, raising an estimated

€177m gross. The less obvious consequence: it activates the FFG sellers’ Maximum

Shareholding Right, allowing them to take up to 6.5m additional shares to preserve their

29.9% stake. Existing shareholders are diluted twice - once for cash proceeds, and again

with nothing incremental received in return.

Close Date

11.87

Price Target (EUR)

12.40

Upside/(Downside)

EDME

Total funding relief is larger than the proceeds alone at approximately €234m, since the FFG

cash component falls by around €57m to €973m as more of the consideration settles in

paper.

Our DCF gives €12.40 per share. We maintain our Outperform rating. Our FFG assumptions

reflect the limited disclosure available on a business that has never reported separately, and

the 7.4x EV/EBIT 2028e implied by the transaction against 11.2x for MRO franchise peers

and 10.6x for defense peers suggests the acquisition should prove value-accretive.

4%

52-Week Range

Pro-forma share count rises to 239.5m from 217.7m in the no-placement case, taking

existing holders from 70.1% to 63.7%. The mechanical effect on our estimates is an EPS

reduction of 9.3%, 9.4%, and 8.7% for FY26e, FY27e and FY28e respectively.

We read the raise as opportunistic rather than defensive, with proceeds likely earmarked for

bolt-ons in Energy and smaller defence acquisitions.

14 Sep 2026

DEZ.GR Close Price (EUR)

13.40/7.30

1,577.08

FYE

Dec

Div Yield

1.5%

Market Cap (EUR) (M)

1,812

EV (EUR) (M)

2,337

Performance

YTD

1M

6M

12M

Absolute (%)

39.6

16.6

20.6

22.2

EDME (%)

7.2

(3.4)

6.6

14.2

Relative (%)

32.4

20.0

14.0

8.0

Source: Bloomberg, Bernstein estimates and analysis.

Price Performance, 1YR

€14

1800

€13

1700

€12

1600

€11

1500

Investment Implications

€10

We rate DEUTZ Outperform with a €12.40 price target based on our base-case DCF

valuation. Our bull and bear cases imply values of €20.57 and €6.32 per share, respectively.

1400

€9

1300

€8

09/25

12/25

…