RENK Group (R3NK) Pre-close call summary

Executive summary

• Production and deliveries are progressing in line with customer contracts, supporting a solid start to 2026 and execution of the capacity expansion plan.

• Q1 2026 order intake reached an all-time high for a first quarter, well above the previously indicated range, driven by strong momentum in core land defense markets.

• Over 90% of planned 2026 revenue is secured by a fixed order backlog, with a stronger revenue loading expected in the second half of the year.

• Guidance for 2026 is confirmed, targeting the upper half of the adjusted EBIT range and more than EUR 1.5 billion in revenue.

Trading performance and revenue trends

• Q1 2026 revenue developed as expected, with the absence of Israel-related volumes compared to Q1 2025.

• Israel export embargo was lifted in November 2025; production and shipments for Israel are ramping up in Q2, with EUR 80–100 million revenue contribution expected for 2026.

• M&I segment revenues were impacted by customer-driven outbound logistics delays and supplier-related gearbox housing issues, causing timing shifts into Q2 and Q3.

• VMS segment showed strong revenue performance, exceeding market expectations when adjusted for Israel volumes.

Profitability and margins

• Adjusted EBIT margin at group level is positive in Q1, with EBIT growth outpacing revenue growth compared to the previous year.

• Modular production line in Augsburg and operational excellence measures are driving efficiency and margin improvements, especially in VMS.

• M&I segment EBIT was affected by timing and supplier issues but would be on par with last year when adjusted.

• Bearing business revenues are flat year-on-year, but margins are lower due to weaker aftermarket and U.S. tariffs.