RENK Group (R3NK) Q4 2025 earnings summary

Executive summary

• Achieved record order backlog of €6.7bn (+34% YoY), record revenues of €1.37bn (+20% YoY), and adjusted EBIT of €230m (+22% YoY), fully delivering on 2025 guidance despite external headwinds.

• Defense business was the main growth driver, with defense revenues up 24% and significant increases in order intake.

• Operational execution, capacity ramp-up, and modular production line implementation supported results and future growth.

• Aftermarket business maintained a 35–40% share of revenues, with plans to expand this segment further.

Financial highlights

• FY 2025 revenue rose 20% YoY to €1,366m; adjusted EBIT increased 22% to €230m; order intake reached €1.57bn (+9% YoY); book-to-bill ratio at 1.2.

• Adjusted EBIT margin improved to 16.9% (from 16.6%), with adjusted EPS up 38% to €1.42.

• Proposed dividend of €0.58/share (+38% YoY), payout ratio at 41%.

• Net debt increased to €391m, leverage at 1.5x adjusted EBITDA.

• Free cash flow was €67m, with a cash conversion rate of 47.2%, impacted by order timing and higher working capital.

Outlook and guidance

• 2026 revenue guidance: >€1.5bn; adjusted EBIT €255–285m, aiming for upper half.

• Midterm targets reconfirmed: organic revenues €2.8–3.2bn, adjusted EBIT margin >20%.

• Order intake visibility for 2026 at ~€2bn, with strong pipeline in land and naval programs.

• CapEx expected to rise to near 5% of revenues in 2026, then near 4% in 2027.

• Aftermarket strategy to be enhanced, targeting >40–50% share by 2035.