Shares in German engine maker Deutz fell 2% on Friday, caught in a broad sell-off across European markets, even as the company reported sharply higher orders and profits for the first nine months of 2026.

The decline came on a day when Germany's DAX index dropped by close to 2% in early trading, dragged lower by a global rout in technology and semiconductor shares. The sell-off followed steep falls on Wall Street, where concerns about the outlook for artificial intelligence companies weighed heavily on sentiment.

Deutz had already given up early gains on Thursday after publishing its quarterly update. Reports also pointed to rival Rheinmetall's decision to trim its full-year guidance as a factor weighing on sentiment across the defence sector, with Deutz pulled lower alongside its peers.

Friday also brought a cluster of regulatory filings that put the spotlight on Deutz's ownership. Four mandatory voting-rights disclosures, from BRIMA, J.O.S.S. Beteiligungsgesellschaft, Universum Holding and FFG Beteiligungsgesellschaft, each reported attributed voting rights of 29.90% in Deutz.

The filings are tied to the FFG acquisition and are underpinned by a voting-rights agreement among parties acting in concert around Norbert Erichsen. The threshold was crossed on Thursday, according to the disclosures, and the combined attribution covers roughly 71.6 million voting rights. The disclosures concern holdings in Deutz and do not reflect any purchase or sale of shares by the company itself.

The underlying trading figures were considerably stronger than the share price move suggested. Deutz reported incoming orders of €1.96 billion for the first nine months of 2026, more than 30% ahead of the prior-year level, while revenue rose about 11% to €1.67 billion.

Adjusted earnings before interest and tax reached €118.2 million, lifting the adjusted EBIT margin to 7.1% from 5.8% a year earlier, and adjusted earnings rose 36% on the company's own figures. Deutz reaffirmed its 2026 revenue guidance of €2.3 billion to €2.5 billion, and said it now expects its adjusted EBIT margin to land at the upper end of its forecast range of 6.5% to 8.0%.

The acquisition of military vehicle maker Flensburger Fahrzeugbau Gesellschaft, known as FFG, has now completed. Deutz expects the deal to add more than €1 billion in additional defence revenue in 2027, at an adjusted EBITDA margin above 20%.

Brokers stayed broadly positive on the stock despite the weak session. Berenberg reiterated its buy rating and €16.50 price target on Friday, although it described the third-quarter numbers as mixed. MPCM cut its target to €18 from €19 while keeping a buy recommendation, citing peer valuation and flagging better-than-expected third-quarter orders.

Separately, a Thursday disclosure revealed that chief executive Dr Sebastian C. Schulte had acquired a Deutz derivative worth €3,800 on Tuesday.

Investors will get a closer look at the company's defence ambitions on 10 November, when a dialogue with finance chief Oliver Neu is scheduled to cover the strategy. The 2026 annual report follows on 30 March 2027, alongside the balance-sheet press conference and an analysts' and investors' event.