Renk Balances Record Order Book Against Thin Cash Conversion
Published on 11/09/2026 at 04:11 | Editorial boerse-global.de
Renk's order book has rarely looked healthier. The German defence transmission maker said Thursday that its backlog stood at a record €7.6 billion on 30 September, with incoming orders for the first nine months of 2026 climbing 33.6% to €1.66 billion. Yet the same trading update left at least one metric wanting, and that gap has become the talking point among analysts.
Top line lags bottom line
Revenue for the nine-month period reached €982.0 million, up 5.8% year on year, while adjusted earnings before interest and taxes rose 12.7% to €158.8 million. The margin expansion is welcome, but the slower sales growth underlines that output is still ramping rather than surging. Renk reaffirmed its industrial capacity build-out and said its full-year targets remain on track.
Those targets, covering continuing operations, envisage roughly €1.4 billion of revenue for 2026 and adjusted EBIT of €240 million to €255 million.
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Free cash flow, however, fell short of expectations, according to a Reuters report on the nine-month figures. Deutsche Bank Research kept its buy rating and €73 price target on Friday, with dpa-AFX noting that the quarterly numbers largely met forecasts but that cash generation disappointed.
Two gearbox orders extend the intake
The backlog has been padded by fresh business on the land-systems side. KNDS Deutschland enlarged its order for transmissions used in the LEOPARD 2 and its vehicle family by about €130 million, covering the HSWL 354 gearbox. Finland's Patria added a follow-on contract worth €30 million for the TRACKX vehicle, for which Renk supplies the HSWL 076 variant. Deliveries to KNDS Deutschland start in 2029, while Patria receives its units from 2027.
Huddersfield becomes the submarine drive hub
Alongside the order flow, Renk has closed its acquisition of David Brown Defence from Stellex Capital Management, finalised just over a week ago after regulatory clearances came through. The business will trade as RENK UK Huddersfield and is earmarked as a centre of excellence for submarine propulsion systems.
Investors will hear the wider strategic case directly on 8 December, when CEO Dr. Alexander Sagel presents a hybrid strategy update in London. Sagel has already put money behind his own outlook: filings on Friday showed he purchased 6,790 Renk shares at a reported transaction value of €238,802.94.
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