RENK Group (R3NK) Q2 2026 earnings summary

Executive summary

• Achieved record H1 2026 order intake of €1.2 billion (+29.7% YoY), driven by strong international demand for land and naval defense platforms and diversification.

• Revenue grew 2.7% year-over-year to €637.2 million, with defense and the VMS division as main growth drivers.

• Adjusted EBIT increased by 10.1% to €98.2 million, with margin expansion to 15.4%, outpacing revenue growth.

• Order backlog reached an all-time high of €7.4 billion, providing strong revenue visibility.

• Acquisition of David Brown Defence strengthens global leadership in naval power transmissions and expands portfolio.

Financial highlights

• Book-to-bill ratio improved to 1.9x, reflecting robust order momentum.

• Adjusted gross profit margin rose to 28.9% year-over-year.

• Net debt stable at €391–407 million, leverage at 1.5x LTM adjusted EBITDA.

• Free cash flow rose to €41.9 million, supported by improved working capital and strong cash conversion.

• Dividend payment of €58 million completed in H1.

Outlook and guidance

• 2026 revenue expected above €1.5 billion; adjusted EBIT €255–285 million, targeting the upper half.

• Over 90% of planned 2026 revenues already covered by fixed order backlog.

• Full-year order intake target of approximately €2 billion, with a diversified and tangible H2 pipeline.

• Capacity ramp-up in Germany underway to nearly triple production by 2030.

• Medium-term and 2030 targets reaffirmed, with strong international demand expected to drive growth.