RENK Group (R3NK) Investor presentation summary

Strategic positioning and growth drivers

• Global leader in mission-critical propulsion solutions for military applications, with a 2025 order backlog of €6.7bn and revenues of €1,366m, up 20% YoY.

• Strong financial profile with 16.9% adj. EBIT margin, 23.5% ROCE, and net leverage of 1.5x for 2025.

• Locked-in business model with multi-decade platform lifecycles, high switching costs, and significant aftermarket revenue.

• Technological excellence and global footprint, serving over 70 armies and 40 navies across 13 countries.

• Positioned to capture growth from the defense super-cycle, especially in Germany and Europe.

Market environment and opportunities

• Ongoing geopolitical tensions and increased defense budgets in Europe and Germany drive demand for equipment.

• NATO budget uplift expected to translate into higher equipment spend and revenue from 2028 onwards.

• Contract awards to primes in 2025-26 and to RENK in 2026-27, with revenue recognition ramping up post-2028.

Strategy and financial targets

• Four strategic pillars: global footprint, operational performance, technological supremacy, and value-accretive M&A.

• Updated financial framework targets >€2b revenue by 2028 and €2.8-3.2b by 2030, with >20% adj. EBIT margin.

• Growth driven by order backlog, pipeline conversion, German defense uplift, and M&A, with up to €1bn revenue ambition from acquisitions by 2030.

• Aftermarket revenue potential of €3-4bn until 2035, leveraging installed base and increased equipment usage.