RENK Group (R3NK) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 order intake of €582.3 million, up 6.1% year-over-year, with a book-to-bill ratio of 2.1x and an all-time high order backlog of €6.9 billion, providing strong revenue visibility for 2026.

• Revenue grew 4.0% year-over-year to €283.6 million, with adjusted EBIT rising 10.4% to €42.4 million and margin improving to 15.0% (+0.9pp year-over-year).

• Vehicle Mobility Solutions (VMS) segment drove growth, with order intake up 20.5% to €478.4 million, revenue up 11.2% to €191.5 million, and adjusted EBIT margin at 18.3%.

• Over 90% of planned 2026 revenue is already covered by fixed order backlog, supporting reaffirmed guidance.

• Profit after tax surged to €15.4 million from €0.8 million, and free cash flow turned positive at €1.2 million versus negative €24.9 million last year.

Financial highlights

• Adjusted EBIT increased 10.4% year-over-year to €42.4 million; margin at 15.0%.

• Adjusted gross profit margin improved to 29.7% from 28.7% in Q1 2025.

• Net debt stable at €391 million; leverage at 1.5x LTM adjusted EBITDA.

• Free cash flow positive at €1.2 million, a €26.1 million improvement year-over-year, despite working capital build.

• Adjusted net income increased 154.5% to €26.1 million; EPS rose to €0.15 from €0.01.

Outlook and guidance

• 2026 guidance reconfirmed: revenue above €1.5 billion, adjusted EBIT €255–285 million, targeting upper half.

• Expect stronger H2, with major order intakes and continued operational improvements.

• Over 90% of 2026 revenue already secured by fixed backlog.

• Continued investment in R&D for next-generation mobility, digitalization, and unmanned systems.

• Management does not anticipate significant negative impacts from geopolitical risks, including the war in Iran, but notes potential effects on energy costs.