Renk 2025 Revenue Jumps 19.8% to €1.37B, Guides Below Forecast
Renk posted €1.37 billion in fiscal 2025 revenue, up 19.8%, and adjusted operating profit rose 21% to €230 million as defense sales made up 75% of total. Order intake hit €1.57 billion, pushing backlog to €6.7 billion, but shares dropped 8% after management guided 2026 revenue at about €1.5 billion, below expectations.
1. Fiscal 2025 Results
Renk’s fiscal 2025 revenue reached €1.37 billion, up 19.8%, while adjusted operating profit increased 21% to €230 million, driven by defense drivetrain systems. Defense products accounted for 75% of total sales, reflecting the company’s strategic focus on military applications.
2. Backlog and Order Intake
New orders totaled €1.57 billion, boosting Renk’s order backlog to about €6.7 billion, compared with €5 billion a year earlier. The multi-year backlog provides visibility as European defense budgets expand and military procurement accelerates.
3. 2026 Guidance and Share Reaction
Management guided fiscal 2026 revenue at around €1.5 billion, slightly below market forecasts, prompting an 8% drop in the company’s share price. The cautious outlook reflects assumptions on contract timing and margin pressures.
4. Geopolitical Demand Drivers
Leadership highlighted potential demand from the Middle East conflict, citing prototype orders for a new Gulf infantry fighting vehicle program. Renk also expects increased interest in naval propulsion systems as nations reassess fleet capabilities.