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RENK Group (R3NK) investor relations material

RENK Group Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary13 Aug, 2025

Executive summary

  • Achieved record order intake of €921M in H1 2025, up 47% year-over-year, with order backlog at an all-time high of €5.93B, driven by strong defense demand and key contracts in the US and Europe.

  • Revenues grew 22% to €620M, exceeding midterm CAGR guidance, with defense accounting for 74% of revenue.

  • Adjusted EBIT rose 29% to €89M, with margin improving to 14.4%, reflecting operational efficiency and scale effects.

  • Free cash flow turned positive at €11.5M, reflecting higher EBITDA and lower interest payments.

  • Confirmed 2025 guidance: revenues >€1.3B and adjusted EBIT €210–235M; midterm targets to be updated in November.

Financial highlights

  • H1 order intake: €921M vs €627M prior year (+46.8%), mainly from military portfolio.

  • H1 revenue: €620M, up €109M (+21.5%) year-over-year; Q2 revenue up 27.5% sequentially.

  • Adjusted gross profit: €171M (+24% year-over-year); adjusted EBIT: €89M (+29.4%).

  • Net profit after tax increased to €31.2M from €7.5M year-over-year.

  • Free cash flow positive at €11.5M after negative €7.5M prior year; CapEx at 1.7% of revenue.

Outlook and guidance

  • 2025 guidance confirmed: revenues above €1.3B, adjusted EBIT €210–235M.

  • Midterm targets to be updated at Capital Market Day in November, with organic growth expected to reach or exceed previous ambitions.

  • Positioned to benefit from increased German and EU defense spending, with higher order visibility expected by year-end.

  • Significant order intake expected in Q4 2025 and 2026, especially from German and European defense programs.

  • Revenue conversion from German procurement expected to start post-2027, with order intake potential of €800M–1.8B for new platforms and €400M–900M for aftermarket.

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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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