RENK Group (R3NK) Pre-close call summary

Executive summary

• Production and deliveries are on track, with execution of the 2026 capacity expansion plan progressing as planned.

• Q1 2026 order intake reached an all-time high for a first quarter, well above the previously indicated range.

• Over 90% of 2026 planned revenue is secured by a fixed order backlog, with a stronger revenue loading expected in H2.

• 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 more than 90% of full-year revenue already secured.

• Q1 revenue was impacted by the absence of Israel-related volumes, which were present in Q1 2025.

• Israel export embargo was lifted in November 2025, with production and shipments ramping up in Q2; full-year Israel revenue contribution expected at EUR 80–100 million.

• M&I segment revenue was delayed due to customer logistics and supplier issues, shifting approximately EUR 10 million and a mid-single-digit EUR amount into later quarters.

• Usual seasonality applies, with Q1 typically being the weakest quarter.

Profitability and margins

• Adjusted EBIT margin at group level is positive and outpaces revenue growth compared to last year.

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

• VMS segment shows strong margin and EBIT growth; M&I EBIT was impacted by timing and supplier issues but would be flat year-on-year without them.

• Bearing business revenues are flat, but margins are down due to lower aftermarket activity and U.S. tariffs.