Capital Markets Day 2025: Focus on defense business – RENK Group AG targets consolidated revenue of €2.8 billion to €3.2 billion by 2030

Augsburg, November 20, 2025 – RENK Group AG, a leading provider of propulsion solutions for the military and civilian sectors, will place its strategic focus more consistently on the defense business going forward. At the second Capital Markets Day in Augsburg today, the Management Board of RENK Group AG presented the strategic levers that form the basis for the company's growth prospects in the second half of this decade and beyond. In light of accelerated organic growth from 2028, RENK is targeting consolidated revenue excluding M&A in the region of €2.8 billion to €3.2 billion by 2030.

“Given the geopolitical situation, we see it as our responsibility at RENK to make a significant contribution to a safe and sustainable future. The share of our defense business in the company's total revenue will increase accordingly to around 90 percent by 2030,” said CEO of RENK Group AG, Dr. Alexander Sagel. “The super cycle in the defense sector and the resulting profitable growth are not only reinforcing our market position, but also creating the basis for targeted expansion of our product portfolio beyond 2030,” Sagel continued.

Development of new product segments, M&A activities, and increased localization are central pillars

The total order backlog of €6.4 billion, which will continue to grow in the coming years, and the strong increase in order potential in the core markets of Europe, the USA and APAC form the basis for the positive growth prospects in defense. The RENK Group is expanding its global presence to consolidate its position as the undisputed market and technology leader for high-performance, field-tested mobility solutions for military tracked vehicles and naval vessels. By expanding its production facilities to India, Eastern Europe and Italy, RENK is increasing its customer and market orientation there as part of its localization strategy. This also applies to RENK America Marine & Industry, formerly Cincinnati Gearing Systems (CGS), whose successful integration is progressing and enabling strong positioning in the US marine market. Similar to the recent acquisition of CGS, further targeted M&A activities in the defense sector are also part of RENK’s overall growth strategy.  The aftermarket and service business, which is growing steadily particularly in Europe, will be supported by the localization of MRO activities in future. Eastern Europe will be the focus of expansion in the short term.

RENK is preparing its product portfolio for future requirements on the battlefield with the initiated NextGen Mobility technology and innovation agenda. The focus is on enhancing mobility solutions in terms of electrification, hybridization, and the digitalization and autonomization of existing product platforms. This includes development of the new modular HSWL 406 transmission for the battle tank platforms of the future and entry into the market for lighter tracked vehicles and UGVs – based on the new HSWL 076.

Operational execution and excellence are key

The key to sustainable, profitable growth until 2030 is and will remain operational excellence. RENK has reached an important milestone by successfully upscaling from manufacturing to small batch production. “The commissioning of our modular production concept in Augsburg in September 2025 laid the foundation for taking our operations to the next level,” said Dr. Emmerich Schiller, COO of RENK Group AG. “We are using the concept as a blueprint for the entire Group’s production network in order to increase our efficiency, operational excellence and margins,” Dr. Schiller continued. The RENK Group aims to increase the output of gear units at its main site in Augsburg from around 700 per year to over 1,800 in the medium term.

Consistent focus on value-creating growth

RENK presented a clearly aligned business model at the Capital Markets Day, that combines organic growth, targeted acquisitions and effective levers to increase profitability. This also includes measures to increase capital productivity, sustained strong cash conversion, and a leverage ratio of <1.5x. In this context, the company presented its medium-term ambitions, including cash conversion of around 80% and a ROCE of more than 20%. This reaffirms RENK’s consistent focus on value-creating growth and disciplined capital allocation – with the aim of increasing the Group's adjusted EBIT margin to over 20% in 2030. The company also intends to continue to spend an average of 3% of revenue on investments in the medium term. “One of our most important missions is to secure profitable growth for the long term. To this end, we have developed a clearly structured financial framework that provides us with orientation for the years ahead. At the same time, it ensures that our investors participate in this strategy in the medium and long term,” said CFO of RENK Group AG Anja Mänz-Siebje.

The full presentation from the Capital Markets Day is available at https://ir.renk.com/.