Renk Backs Full-Year Targets as Analysts Keep Faith Despite Order-to-Revenue Lag
Published on 11/07/2026 at 07:42 | Editorial boerse-global.de
Renk has reaffirmed its full-year guidance for continuing operations even as its chief executive flagged that bottlenecks at major defence contractors could stretch out the conversion of its order book into sales. The disclosure came on the same day two investment banks reiterated bullish stances on the German propulsion specialist.
CEO Alexander Sagel pointed to Germany's Boxer programme as an example of the delays, according to Reuters. The backlog stood at €7.6 billion at the close of the nine-month period in 2026.
Orders Outpace Sales
Order intake for the first nine months of 2026 climbed 33.6% to €1.66 billion, or precisely €1,664.4 million. Revenue over the same stretch advanced 5.8% to €982.0 million — a markedly slower pace, underscoring the gap between bookings and billed work.
Adjusted EBIT rose 12.7% to €158.8 million. The warning about potential slippage therefore concerns the execution of the backlog, not the reported performance: Renk booked both higher sales and a larger profit for the period.
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One sizeable contract landed in the third quarter, with KNDS Deutschland placing an order worth roughly €130 million for gearboxes destined for Leopard 2 tanks and associated vehicles. Deliveries are scheduled for the 2029 to 2032 window.
Guidance Holds for Continuing Operations
Management kept its forecast for the continuing business unchanged. Renk still expects revenue of around €1.4 billion for the 2026 financial year, with adjusted EBIT targeted in a range of €240 million to €255 million.
The company's restructuring includes the agreed disposal of its Slide Bearings unit to Austria's Miba AG. Renk signed the contract on 22 October through subsidiary RENK GmbH, subject to customary regulatory approvals. A strategy update has been slated for 8 December 2026.
Two Banks, Two Targets, One Verdict
Jefferies restated its buy rating on Thursday with a €60 price target. Analyst Chloe Lemarie wrote that the quarterly results had largely matched expectations. JPMorgan took the same day to reaffirm its overweight recommendation while holding firm on a €50 target.
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Engineering momentum elsewhere in the portfolio has continued. On 30 October Renk reported progress on the HSWL 406 gearbox for future heavy tracked vehicles, rated for output of up to 1,400 kilowatts. Development is being steered toward international programmes, among them Italy's NMBT effort.
Naval work is advancing in parallel. Ahead of Euronaval 2026, Renk unveiled on 29 October maritime propulsion solutions for uncrewed surface vessels. Its Renk Magnet-Motor division also secured an order from Saab for three Stirling power generation systems, intended for a submarine programme run by a NATO member state.
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