RENK Group Surges on Defense Boom, Posts Record Revenue and Orders

AUGSBURG, Germany – March 05, 2026 – RENK Group AG, a key manufacturer of mission-critical propulsion systems, has announced record-breaking financial results for fiscal year 2025, underscoring the powerful tailwinds generated by escalating global defense spending. The company reported a nearly 20% jump in revenue to €1.37 billion and a new all-time high order backlog of €6.68 billion, signaling a sustained period of intense activity and growth.

The performance, which met all annual targets, was overwhelmingly driven by the company’s defense business, which saw revenues climb by 24% and now constitutes 74% of the firm's total revenue. This strategic focus on defense technologies appears to be paying significant dividends as nations worldwide move to modernize their military forces in an increasingly volatile geopolitical landscape.

“Our strategy of placing the focus firmly on defense technologies is paying off – we are seeing the highest revenue, order intake and order backlog in company history,” stated CEO Dr. Alexander Sagel in the official announcement. “It is clear in this geopolitically volatile environment that operational performance and the ability to deliver are key. The RENK Group aligned itself with these changed conditions at an early stage and systematically picked up the necessary speed.”

Riding the Global Defense Spending Wave

RENK's exceptional results do not exist in a vacuum. They are a direct reflection of a structural shift in global security priorities. Global defense spending has been climbing at its steepest rate since the end of the Cold War, with European nations in particular accelerating their investments. European defense budgets soared in 2025, driven by NATO commitments for member states to increase military spending, with some now aiming for long-term targets as high as 5% of GDP.

This surge is fueling a massive wave of military modernization. Nations are replacing aging vehicle fleets and naval assets, creating immense demand for the high-performance components at the heart of RENK's product portfolio. The company’s gear units, transmissions, and power-packs are essential for the mobility and reliability of main battle tanks, armored vehicles, and naval vessels. As governments prioritize readiness and technological superiority, the demand for these mission-critical systems has never been higher. The company's record €1.57 billion in new orders for 2025, building on an already robust backlog, illustrates this powerful and ongoing trend.

Operational Strength Across Segments

While the defense sector provided the primary growth engine, a closer look at the company’s segments reveals a story of operational strength and resilience. The Vehicle Mobility Solutions (VMS) segment was the standout performer, with revenues growing by an impressive 24.8% to €872 million. This division, which produces propulsion systems for tanks and other military vehicles, also saw its adjusted EBIT margin improve to 20.4%. A significant contributor to this success was RENK America (RAM), which secured over US$550 million in order intake, highlighting the company’s strong foothold in the critical U.S. defense market.

Even segments facing broader industrial headwinds demonstrated resilience. The Marine & Industry (M&I) segment grew revenue by 15.3% to €380 million, largely driven by its naval business, which successfully offset subdued demand in the wider industrial sector. Similarly, the Slide Bearings segment navigated a weak industrial environment to post a 2.5% revenue increase, a testament to its specialized market position.

CFO Anja Mänz-Siebje commented on the company's ability to thrive despite challenges. “We once again demonstrated our ability to translate growth into sustainable profitability in fiscal year 2025 despite facing headwinds from various issues such as US tariffs, weak industrial performance, export embargoes and exchange rate effects,” she noted.

Market Confidence and Future Trajectory

The market has taken notice of RENK's performance and strategic positioning. Following its successful listing on the Frankfurt Stock Exchange in February 2024, the company achieved a rapid inclusion into Germany’s prestigious MDAX mid-cap index in March 2025. This milestone significantly boosts the company's visibility to institutional investors, enhances stock liquidity, and serves as a powerful endorsement of its market standing and growth trajectory.

Looking ahead, RENK's leadership is confident that the momentum will continue. The company has issued a positive outlook for fiscal year 2026, projecting revenues to climb above €1.5 billion and adjusted EBIT to fall between €255 million and €285 million. This forecast is firmly supported by the colossal €6.68 billion order backlog, which provides exceptional revenue visibility for several years. This backlog is largely composed of long-term contracts for major defense programs, lending it a stability and predictability that is highly valued by investors.

Reflecting this confidence and commitment to shareholder returns, the Executive Board will propose a 38% increase in the dividend to €0.58 per share at the upcoming general meeting. This move not only rewards investors but also signals a deep-seated belief in the company’s sustained profitability and cash-flow generation capabilities as it continues to power the world’s most advanced defense platforms.