RENK is flourishing: boom in orders means profits are growing!
RENK recorded order intake of EUR 548.6 million in Q1 2025. The stock fell 15% despite increasing sales.
RENK is flourishing: boom in orders means profits are growing!
In the first quarter of 2025, RENK AG recorded an impressive increase in order intake. This increased by almost 164 percent to 548.6 million euros compared to the same period last year. Despite this positive development, the RENK share shows a slight downward movement in XETRA trading and temporarily fell by 0.81 percent to 55.13 euros finanzen.at reported.
The company's order backlog now amounts to an impressive 5.5 billion euros. These numbers reflect the current arms boom that is filling the books of the tank transmission specialist. In the EU, increased defense spending is leading to an unprecedented volume of orders, which will continue to play a role in the coming years wallstreet-online.de emphasized.
Sales and profit development
In the first quarter, RENK's sales rose by around 15 percent to almost 273 million euros. However, this result fell slightly short of analysts' expectations. The adjusted earnings before interest and taxes (EBIT), on the other hand, show increased performance: it increased by a good 38 percent to 38.4 million euros, which increased the EBIT margin from 11.7 percent to 14.1 percent.
For the full year 2025, RENK forecasts an adjusted EBIT of between 210 and 235 million euros. This optimistic outlook contrasts with the results in the first quarter, where the company made a profit of almost 0.8 million euros, after recording a loss of almost 2.8 million euros the previous year.
Strategic outlook
Despite the excellent order situation and positive business development, the company is keeping its annual forecast unchanged. However, this forecast does not take into account the sustainable market potential resulting from increasing defense spending in the EU. RENK can thus further position itself in a dynamic market environment and expand its expertise in the field of armored transmissions.
In summary, it can be said that RENK can boast strong orders and better key figures, but the development of the share requires even more attention. The arms boom opens up interesting opportunities that the company would like to exploit in the coming years.