Q1 2025: RENK doubles order intake and achieves record order backlog

Augsburg, May 14, 2025 – RENK Group AG, a leading supplier of propulsion solutions for the military and civilian sectors, continues to grow consistently in fiscal year 2025 following a successful close to 2024. Order intake increased by 163.5% to €549 million in the first quarter (Q1 2024: €208 million). Revenue rose considerably by 14.7% to €273 million (2024: €238 million). Adjusted EBIT rose by an above-average 38.1% to €38 million (Q1 2024: €28 million). The adjusted EBIT margin also grew in the first quarter, by 2.4 percentage points to 14.1% (Q1 2024: 11.7%).

“Our successful start to fiscal year 2025 underscores once again that we set the right strategic course to continue our sustainable growth. We increased our order intake more than twofold in Q1 2025 versus the prior-year quarter thanks to our strong defense business. We therefore remain at the same high level as at the end of last year, which shows that our customers value RENK as a reliable partner. We are fully on track to achieve our annual targets,” said Dr. Alexander Sagel, CEO of RENK Group AG.

VMS segment remains primary driver of the Group

The Vehicle Mobility Solutions (VMS) segment further improved all key financial metrics in the first quarter of 2025. There was a significant increase in revenue, of 28.1% to €172 million (Q1 2024: €134 million). Adjusted EBIT amounted to €29 million, representing an increase of 46.6% (Q1 2024: €20 million). The adjusted EBIT margin also grew accordingly, by 2.1 percentage points to 16.6% (Q1 2024: 14.5%). Order intake grew by 404.2% to €397 million, benefitting from factors including two orders from the U.S. Army with a total value of over US$150 million to supply HMPT transmissions for the Bradley Fighting Vehicle (BFV) and Armored Multi-Purpose Vehicle (AMPV) platforms.

Revenue in the Marine & Industry (M&I) segment declined moderately by 6.9% year on year to €73 million (Q1 2024: €79 million). This was due in part to customers postponing projects until the second and third quarters of this year. Adjusted EBIT rose by 54.7% to €7 million (2024: €5 million). The adjusted EBIT margin also improved significantly, by 4.1 percentage points to 10.2% (Q1 2024: 6.1%). Order intake also developed very positively and grew by 24.9% to €122 million (Q1 2024: €98 million). This was primarily driven by several major orders from international marine customers.

Revenue and earnings in the Slide Bearings segment performed as projected at the beginning of fiscal year 2025, with an increase of 6.8% to €31 million in revenue (Q1 2024: €29 million) and of 9.3% to €5 million in adjusted EBIT (Q1 2024: €5 million). The adjusted EBIT margin also grew accordingly, by 0.4 percentage points to 17.3% (Q1 2024: 16.9%). Order intake decreased slightly by 5.2% to €37 million (Q1 2024: €39 million).

“We got off to a good start in the new fiscal year. The effects of the established efficiency measures remain tangible and are increasing our operational excellence. Thanks to our targeted investments in production in recent years, we are ideally positioned to convert our order backlog into revenue,” said Dr. Emmerich Schiller, COO of Renk Group AG.

Management Board confirms guidance for 2025

The Management Board has confirmed its annual forecast for 2025 in light of the successful start to the year. It continues to expect revenue in excess of €1.3 billion and adjusted EBIT of between €210 million and €235 million.

The medium-term targets of €2 billion in revenue for 2028 (~15% organic revenue growth) and adjusted EBIT of €300 million for 2027 remain unchanged. This outlook is based on the currently expected operating performance and the high order backlog, and does not take into account any further market potential from increased defense spending in the EU.

“We demonstrated in the first quarter that RENK stands for sustainable and profitable growth. We improved our margin across the board at both Group and segment level. Our record order backlog provides revenue visibility for the coming years and thus also a stable base on which to meet our financial targets,” said Anja Mänz-Siebje, CFO of RENK Group AG.

RENK Group AG will be holding its Annual General Meeting virtually on June 4, 2025.

Group key metrics (in € millions) at a glance

Segment key metrics (in € millions) at a glance

About the RENK Group AG

Headquartered in Augsburg, Germany, RENK Group AG is a globally leading manufacturer of mission-critical propulsion solutions across diverse military and civil end markets. Our product portfolio includes gear units, transmissions, power-packs, hybrid propulsion systems, suspension systems, slide bearings, couplings & clutches and test systems. With this broad product portfolio RENK Group AG serves, in particular, customers in industries for military vehicles, naval, civil marine, and industrial applications focused on energy. In the fiscal year 2024, RENK Group AG generated revenue of EUR 1.14 billion. RENK Group AG has been listed on the Frankfurt Stock Exchange since February 7, 2024, and has been a member of the MDAX since March 24, 2025.

Disclaimer

This Press Release contains forward-looking statements that are based on plans, expectations, estimates and projections of the management of RENK Group as at the date of this Press Release. These plans, expectations, estimates and projections depend on a variety of assumptions and are subject to unforeseeable events, uncertainties, known and unknown risks as well as other factors that may cause actual results or the actual financial situation, development or performance to differ from those expressed or implied in the forward-looking statements. RENK Group does not assume any obligation to update the forward-looking statements or make adjustments to them to reflect events or developments occurring after the date of this Press Release unless obliged by statutory law.