Renk Group has recorded its strongest-ever quarterly order intake and continued revenue growth for the first half of 2026, driven largely by sustained demand from the defence sector.
The company stated that its order intake rose nearly 30% year-on-year to approximately €1.2bn ($1.3bn), surpassing the volume achieved during the first nine months of the previous year.
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The book-to-bill ratio increased to 1.9, compared with 1.5 a year earlier, reflecting what RENK called “structurally consistent high international demand.”
Total order backlog reached an all-time high of €7.4bn.
Renk Group AG CEO Dr. Alexander Sagel said: “Our order intake of close to €1.2 billion for the six-month period almost matched the volume for the first nine months of the previous year.
“We are systematically realising our growth strategy and making targeted investments in technology and additional capacities in order to continue to provide reliable long-term support to our customers.”
During the first half, Renk’s revenue rose 2.7% to €637.2m, a result the group said was in line with its projections.
The company’s adjusted earnings before interest and taxes (EBIT) rose by 10.1% to €98.2m, while the adjusted EBIT margin increased by one percentage point to 15.4%.
The Vehicle Mobility Solutions (VMS) division remains RENK’s primary growth engine, recording a 42.6% rise in order intake to €970.4m for the first six months.
The division’s book-to-bill ratio increased to 2.3, indicating robust demand, especially for land domain products.
Key orders included an extension of the framework agreement with Rheinmetall for the KF41 Lynx programme, valued at around €270m with options for a further €63m.
In addition, the company secured a follow-on contract for the US Army’s HMPT 800 transmission under the five-year THOR-IV agreement, with a minimum order value recognition of around €121m in the second quarter.
Revenue for the VMS segment climbed to €418.6m, and adjusted EBIT rose to €80.3m, with the margin improving to 19.2%.
Renk noted strong demand was also evident in service and spare parts markets across Germany, Europe, and the US.
Within the Marine & Industry (M&I) division, order intake decreased by 9.9% to €164.4m, though the company reported a substantial quarter-on-quarter recovery due to significant marine orders, particularly from international frigate programmes.
Revenue for the division declined to €165.1m, and adjusted EBIT dropped to €16.3m with a corresponding margin decrease to 9.9%.
The company cited ongoing weakness in industrial markets as a contributing factor.
Renk’s Slide Bearings (SB) division continued to face challenging conditions, largely attributed to the downturn in the industrial sector.
Order intake fell by 3.2% to €64.2m, while revenue dropped 4.4% to €59.9m.
In response to the positive performance, the company reaffirmed its 2026 guidance, projecting revenue to exceed €1.5bn with adjusted EBIT expected to fall between €255m and €285m.
Renk CFO Anja Mänz-Siebje said: “Our positive financial performance and our new flexible financing provide a solid basis to continue pursuing our strategic ambitions for profitable growth and M&A.”
