RENK Group (R3NK) Q4 2024 earnings summary

Executive summary

• Achieved strong FY 2024 performance with revenue up 23.2% year-over-year to €1,141m and adjusted EBIT up 26% to €189m, at the top end of guidance, driven by operational improvements and execution in lead plants.

• Order backlog reached approximately €5 billion, about 4.3 times last 12 months' revenues, with order intake rising 13% to €1,442m.

• Defense share of business increased to 72%, aftermarket business at 40%, and regional customer base remains diversified.

• Strategic R&D cooperation with NXP announced to advance digitalization and autonomy capabilities.

• Leadership changes with a new CEO and COO, and entry into the MDAX index.

Financial highlights

• Revenue grew 23.2% year-over-year to €1,141m, primarily from strong VMS performance and operational efficiencies.

• Adjusted EBIT for 2024 reached €189m, with a 16.6% margin, at the upper end of guidance.

• Net income after tax was €54.8m, up from €32.3m in 2023.

• Free cash flow increased 414% to €87.4m, supported by strong operating performance and net working capital reduction.

• Proposed dividend up 40% to €0.42 per share for 2024.

Outlook and guidance

• 2025 revenue expected to exceed €1.3 billion; adjusted EBIT guidance set at €210–235 million, supporting a medium-term target of ~€300m by 2027.

• Continued focus on operational excellence, efficiency, and capacity expansion to support growth.

• Additional upside from increased European defense budgets not yet included in guidance; further visibility expected as budget allocations become clearer.

• Strong start to 2025 with major orders and robust operational performance.