Renk Group's second-quarter sales top forecasts on strong defense spending

Investing.com -- RENK Group AG (ETR:R3NK) posted stronger-than-expected second-quarter results on Wednesday, supported by steady European defense spending.

Revenue came in at €348 million ($406 million), beating the €338 million expected in an LSEG poll of analysts.

Sales in the vehicle mobility solutions division — which accounted for about two-thirds of total revenue in 2024 — rose 35.3% year-on-year to €217 million.

Quarterly order intake totaled €373 million, down 11.1% from a year earlier.

Adjusted EBIT increased 23.5% to €51 million, while the company’s order backlog reached €5.9 billion at the end of the quarter.

Renk reaffirmed its 2025 outlook, targeting revenue above €1.3 billion and adjusted EBIT between €210 million and €235 million.

The forecast is based on current performance expectations and the sizeable order backlog, and excludes potential additional demand from future German and European defense procurement projects, the company said.

“We consistently pursued our profitable growth trajectory in the first half of this year and further improved the Group-level margin through increased revenue and strict cost management,” said CFO Anja Mänz-Siebje.

For the first half of the year, Renk reported revenue of €620 million, up 22% year-on-year, with adjusted EBIT rising 29% to €89 million.

Order intake jumped 47% to €921 million, giving a book-to-bill ratio of 1.5, while the order backlog hit a record €5.9 billion.