- “Zeitenwende” and energy transition identified as key drivers of the positive developments for the company
- Fixed order backlog grows dynamically and reaches all-time high
- Ambitious sustainability targets under the Sustainability Strategy 2030
Augsburg, June 12, 2023 – RENK Group, a leading supplier of propulsion and drive train technology for the civil and military sectors, grew again in the first quarter of 2023. Revenue increased by 5 per cent year-on-year to EUR 194 million (Q1 2022: EUR 185 million). Supported by a strong increase in order intake, especially in aftermarket sales, the fixed order backlog¹ grew to an all-time high of EUR 1.7 billion.
“After strong results in the previous year we have started the first quarter of 2023 with momentum. The growth of the first three months confirms our strategy to further expand our position, particularly in the growth areas of security and defence, as well as climate protection and new energies,” said Susanne Wiegand, CEO of RENK Group. “We aim to maintain our position as a technology leader by offering innovative solutions, especially in the future areas of electrification, decarbonisation, and digitalisation. These solutions include applications for renewable energies, hydrogen, carbon capture and storage (CCUS) and sustainable drive systems. We are also committed to further strengthening our position internationally.”
To continue its successful growth trajectory, RENK is recruiting actively at its German and worldwide locations. RENK has a need for a total of about 250 additional skilled workers, about 200 of which at the Augsburg, Hanover and Rheine locations alone.
Financial year 2022 with profitable growth in all business units
RENK Group generated revenue of EUR 849 million in fiscal year 2022, reflecting growth of 5 percent year-on-year. The strong order intake in 2022 across all divisions had boosted the fixed order backlog to an all-time high of EUR 1.4 billion at the end of the year.
RENK Group’s operating margin before special items (adjusted EBIT margin²) also increased, rising to 17 percent, up from 13 percent in the previous year.
The company has invested in facilities and equipment in recent years in preparation for future growth. In May 2022, the company opened a new production and assembly hall, complete with modern machines and test benches for the defence and security sector. RENK has also invested significantly in the digitalisation of the company. At the same time and due to a robust cash flow, the company managed to strongly further decrease its debt.
The acquisition of General Kinetics, a Canadian supplier of suspension systems for military vehicles, at the beginning of this year was another milestone for the further internationalisation of RENK Group. With the acquisition, RENK is further consolidating the company's market position in North America. This began in 2019 with the takeover of the Horstman Group and subsequently led to the acquisition of the Combat Propulsion Systems division of L3Harris Technologies and thus, the establishment of RENK America in 2021.
Ambitious goals within the framework of the Sustainability Strategy 2030
Along with the annual financial statement for 2022, RENK has also published a sustainability report for the first time. The company has set the goal of being climate neutral (“carbon net zero” with regard to scope 1 and scope 2 emissions) in Europe by 2030 and in all other regions by 2040. Already today, almost the entire electrical energy demand at the German sites is completely covered by renewable energies.
“Last year, we developed our Sustainability Strategy 2030. As part of this, we set ambitious goals and developed a clear roadmap for how we want to achieve these goals,” said Susanne Wiegand. “The durability and efficiency of our products is what defines us at RENK. With our products and solutions, we support the transformation to a safe and sustainable economy and society. I am very proud that in this special year – our 150th anniversary – we are presenting our first sustainability report.”
Fixed order backlog represents with respect to binding customer contracts and purchase orders concluded and/or received the portion of the associated transaction price for which the amount of sales revenue has not yet been recognized in accordance with IFRS.
Adjusted EBIT means operating profit before effects of purchase price allocation as adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adjusted EBIT Margin means Adjusted EBIT divided by revenue.
About RENK Group:
Headquartered in Augsburg, Germany, the RENK Group is a leading global player for high-end gear units, power packs, hybrid propulsion systems, suspension systems, slide bearings, couplings, and test systems. The company caters to a multiplicity of end markets, focusing especially on security and defense, energy and infrastructure.
Disclaimer
This release contains forward-looking statements. These statements are based on the current views, expectations, assumptions, and information of the management of RENK Holding GmbH (the “Company”). Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance, or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this release or the underlying assumptions. The Company does not assume any obligations to update any forward-looking statements. Moreover, it should be noted that all forward-looking statements only speak as of the date of this release and that the Company assumes no obligation, except as required by law, to update any forward-looking statement or to conform any such statement to actual events or developments.
The Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise.
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