RENK Group
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RENK Group (R3NK) investor relations material

RENK Group Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary5 Mar, 2026

Executive summary

  • Achieved record order backlog of €6.7B (+34% YoY), revenue of €1.37B (+20% YoY), and adjusted EBIT of €230M (+22% YoY), fully delivering on 2025 guidance despite external headwinds.

  • Defense business was the main growth driver, with defense revenues up 24% and order intake up 4% (would be 19% adjusting for order shifts).

  • Operational performance and capacity expansion initiatives, especially in Augsburg and Rheine, are on track, supporting future growth.

  • Aftermarket business remains strong (35–40% of revenue), with plans to expand share to 40–50% by 2035.

  • Proposed dividend of €0.58/share (+38% YoY), payout ratio at 41%.

Financial highlights

  • FY 2025 revenue rose 20% YoY to €1.37B; adjusted EBIT increased 22% to €230M; adjusted EBIT margin improved to 16.9%.

  • Order intake reached €1.6B (+9% YoY), with a book-to-bill ratio of 1.2; €200M in orders postponed to 2026.

  • Net debt increased to €391M, leverage improved to 1.5x adjusted EBITDA.

  • Free cash flow was €67M, impacted by working capital increases due to order timing.

  • Net income after tax increased to €101.3M from €54.8M in the prior year.

Outlook and guidance

  • 2026 revenue guidance: >€1.5B; adjusted EBIT €255–285M, aiming for upper half.

  • Midterm targets reconfirmed: organic revenues €2.8–3.2B, adjusted EBIT margin >20%.

  • Order intake visibility for 2026 is ~€2B, with strong pipeline in land and naval programs.

  • CapEx to rise to near 5% of revenue in 2026, then near 4% in 2027, supporting growth.

  • Cash conversion rate target remains above 80% on multi-year average.

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Frequently asked questions

RENK Group AG, formerly known as RENK Holding GmbH, is a German-based manufacturer of high-precision drive solutions used in both civil and military sectors. The company's extensive product lineup includes gear units, transmissions, power-packs, hybrid propulsion systems, suspension systems, slide bearings, couplings, and clutches, along with comprehensive test systems. These products find application across a range of industries, notably in military vehicles, naval and civil marine operations, and sectors such as cement, plastics production, oil & gas, hydrogen, Carbon Capture, Usage and Storage (CCUS), and industrial heat pumps. The company is headquartered in Augsburg, Germany, and its shares are listed on the Frankfurt Stock Exchange.

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