German defense stocks continued their midweek recovery, led by RENK, Rheinmetall and HENSOLDT.
• RENK, Rheinmetall and HENSOLDT are continuing their recovery trend
• RENK America will receive orders of over $500 million for the first time in 2025
• RENK plans to double sales by 2030 – but a major growth spurt is not expected until 2028
RENK shares up – Rheinmetall and HENSOLDT also in demand
After German defense stocks started December weaker, a recovery began on Tuesday. Rheinmetall’s shares were ultimately up 2.90 percent at 1,490.00 euros via XETRA, making them the leaders in the DAX. In the MDAX, RENK gained 1.86 percent to 48.97 euros and HENSOLDT gained 2.95 percent to 68.15 euros. The gains continued in the middle of the week: RENK shares ultimately gained 0.53 percent to 49.23 euros in XETRA trading. Meanwhile, the shares of its competitors Rheinmetall rose by 1.95 percent to 1,519.00 euros, while HENSOLDT gained 0.22 percent to 68.30 euros.
Record orders demonstrate dynamic growth in US business
RENK has achieved significant success in its operational business. According to the company, the US subsidiary RENK America has achieved a historic record order intake in the current year 2025. The order volume exceeded the $500 million mark for the first time, underlining the strong demand for the group’s military mobility solutions. This development illustrates RENK’s growing importance as a supplier of military tracked vehicles and confirms the international competitiveness of the German defense company.
Ambitious growth strategy defined until 2030
RENK recently specified its long-term growth goals and is aiming for impressive development by 2030. The group plans to double its sales to between 2.8 and 3.2 billion euros – starting from at least 1.3 billion euros for the current year 2025. Particularly noteworthy: the share of defense business is expected to rise to over 90 percent, which reflects the company’s strategic realignment in the context of the changed security policy situation in Europe. In addition, RENK is targeting an operating margin of over 20 percent, which would significantly increase the group’s profitability.
Delayed growth spurt only expected from 2028
Despite the positive long-term prospects, management is dampening short-term expectations. The big growth spurt is only expected from 2028, when the current procurement decisions and budget plans of the NATO countries take full effect. This lag between policy decisions and actual order intake could be a factor affecting the stock’s current valuation. Investors apparently have to prepare for a longer wait before the strategic repositioning is reflected in corresponding financial results.
Editorial team finanzen.net
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