RENK Group (R3NK) German Select VII Conference summary

Key milestones and market positioning

• Market leader in special transmissions and gearboxes for tracked military vehicles, with over 150 years of history and a 75% global market presence.

• Recognized as a global leader in mission-critical propulsion solutions, serving 70+ armies and 40+ navies across 13 countries with 21 locations and 4,400 employees.

• Holds #1 market positions in transmissions for tracked military vehicles and gearboxes for large naval surface combatants, with a broad portfolio spanning land, navy, and civil sectors.

• Defense business comprises about 75% of revenues, targeted to exceed 90% by 2030, with a strong aftermarket share aiming for 45-50% in the 2030s.

• Vehicle Mobility Solutions (VMS) is the core segment, accounting for two-thirds of sales and three-quarters of profits.

Financial performance and outlook

• FY 2025 order backlog reached €6.7bn, with revenues of €1,366m (+20% YoY) and order intake of €1,571m (+9% YoY).

• Achieved all-time highs in order intake, backlog, revenues, and adjusted EBIT in 2025, with a 40% dividend increase.

• Adjusted EBIT for FY 2025 was €230m (16.9% margin), with ROCE at 23.5% and net leverage at 1.5x.

• 2026 revenue guidance set above EUR 1.5 billion, targeting an adjusted EBIT margin of EUR 255–285 million.

• Midterm (2030) targets: revenues of EUR 2.8–3.2 billion and adjusted EBIT margin above 20%.

Strategic priorities and growth drivers

• Focused on expanding the defense segment through R&D, CapEx, and M&A, with civil business deprioritized for growth.

• Aftermarket business is a key growth area, aiming for a proactive strategy to reach 45–50% revenue share by 2035.

• Ongoing investments in innovation and asset base to sustain leadership in high-growth markets.

• Locked-in business model ensures recurring revenues due to high customer switching costs and long platform lifecycles.

• Operational excellence supported by high operating leverage, margin expansion, and a skilled workforce.