Renk's first-quarter orders beat forecasts on military vehicle demand
Renk Reports Strong First-Quarter Performance Driven by Military Demand
May 6 (Reuters) - German tank gearbox supplier Renk reported first-quarter order intake above analysts' estimates on Wednesday, as strong demand at its core military vehicle business expanded its backlog.
Company Overview and Market Position
The Augsburg-based company supplies transmissions and drive systems used in battle tanks, including the Leopard 2, and naval propulsion systems, which means it benefits from Europe's military spending push like many other German defence suppliers.
Key Financial Highlights
Order Intake and Revenue Growth
• Order intake rose 6.1% to 582.3 million euros ($683.2 million), beating the 557.4 million euros expected in a company-compiled consensus
Vehicle Mobility Solutions Division
• Growth was driven by Renk's Vehicle Mobility Solutions division, where orders grew 20.5%
• Revenue rose 4% to 283.6 million euros, broadly in line with analysts' expectations
• Renk said some deliveries and revenue had shifted to later quarters due to external logistics-chain delays
Order Backlog and Profitability
• Order backlog rose to a record 6.9 billion euros at the end of March, compared with 5.5 billion euros a year ago
• Adjusted EBIT climbed 10.4% to 42.4 million euros, above consensus of 40.9 million euros; corresponding margin improved to 15.0% from 14.1% a year ago
Guidance and Divisional Performance
• Renk confirmed its 2026 guidance for revenue of more than 1.5 billion euros and adjusted EBIT of 255-285 million euros
Marine & Industry Division
• The Marine & Industry division saw its order intake fall 42.8%, which Renk attributed to a tough year-ago comparison with large naval project orders
Additional Information
($1 = 0.8524 euros)
(Reporting by Hugo Lhomedet; Editing by Milla Nissi-Prussak)
