Augsburg (dpa-AFX)-The armor boom continues to ensure high demand from the tank gear manufacturer Renk. “In the first quarter of 2025, driven by a strong defense business, we were able to double our order in the previous year,” said CEO Alexander Sagel, who has been in office since February, loudly announced on Wednesday. He sees Renk on course on the confirmed annual goals and expects great potential in the long term due to increasing defense budgets of the EU and NATO countries. The Renk share, which was running very well so far, then commute between profits and losses.
In the first quarter, the order intake rose by almost 164 percent to 549 million euros compared to the same period in the previous year, as the company listed in the MDAX announced the middle of the week in Augsburg. Renk is now sitting on an order stock of 5.5 billion euros – according to the group, a record value.
With its order incoming, the tank gear manufacturer impressively underlines why the share has increased so much this year, commented by Broker CMC Markets. “But it is not enough for more than a confirmation of what investors expected,” said Stanzl.
The Renk share took roller coaster in the morning. After a friendly start, the paper quickly turned up to 1.6 percent into the red, but then increased by almost 2.3 percent at the top. Most recently, the stock slipped half a percent lower to 55.30 euros. However, the course has already tripled roughly since the beginning of the year. Renk rose the good development in the MDAX of medium -sized companies in March. At the beginning of May, the stock reached a record high at 60.10 euros and was recently asked as much as Rheinmetall and Hensoldt.
Renk increased his turnover by around 15 percent to just under 273 million euros at the start of the year, making it slightly behind the analysts’ expectations. The adjusted result before interest and taxes (EBIT) increased by a good 38 percent to 38.4 million euros, which the experts had roughly on the piece. The corresponding margin climbed from 11.7 percent to 14.1 percent. The bottom line was that Renk earned almost 0.8 million euros in the first quarter, after a year earlier there was a loss of almost 2.8 million euros.
For 2025, the company continues to expect sales of more than 1.3 billion euros and an adjusted operational result of 210 to 235 million euros. However, these forecasts do not yet take into account the market potential due to higher defense spending in the European Union.
The medium -term goals also leaves Renk untouched and is still aiming for an adjusted surgical result of around 300 million euros in 2027 as well as sales of 2 billion euros in 2028 – this would correspond to organic growth of around 15 percent per year.
Renk boss Sagel now wants to carefully observe the budget decisions of the NATO countries and takes a look at the NATO summit in the Netherlands planned in June. Afterwards, Sagel wants to put the medium -term goals to the test again, as can be seen from an analyst presentation. The first sales due to possibly increased NATO states are expected to be expected from 2027, it said. In 2030, sales could be 2.5 to 3 billion euros.
This rough estimate coincided with his expectations, wrote analyst George McWhirtter from the private bank Berenberg. It is no surprise that the forecast for 2025 will only be confirmed at the current time. The start of the year was strong, added the industry expert. Jefferies analyst Chloe Lemarie also certified Renk in all good quarterly figures, but criticized the unexpectedly weak free cash inflow.
Renk produces gearbox for tanks, vehicles and ships, but also for industrial plants. In addition, couplings, sliding stores and test systems are part of the offer. In the first quarter, the armaments business in particular ensured growth, including two orders from the US Army, Renk gave a significant increase in sales in the segment around vehicles and mobility. The naval and industrial division, on the other hand, developed worse – on the one hand because of shifts on the customer side in the follow -up quartals, and on the other hand because of a weakening order from industry in the previous year./NiW/tavmis
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