RENK Group (R3NK) Pre-close call summary

Executive summary

• Production and deliveries are on track, with execution of the 2026 capacity expansion plan progressing as planned.

• Q1 2026 order intake reached an all-time high for a first quarter, well above the previously indicated range.

• Over 90% of 2026 planned revenue is secured by a fixed order backlog, with a stronger revenue loading expected in H2.

• Guidance for 2026 is confirmed, targeting the upper half of the adjusted EBIT range and more than EUR 1.5 billion in revenue.

Trading performance and revenue trends

• Q1 2026 revenue developed as expected, with the absence of Israel-related revenue compared to Q1 2025.

• Israel export embargo was lifted in November 2025; production and shipments for Israel are ramping up in Q2, with EUR 80–100 million revenue expected for 2026.

• M&I segment revenues were impacted by customer logistics delays and supplier issues, causing a timing shift of approximately EUR 10 million in navy revenues to later quarters.

• Seasonality remains, with Q1 typically the weakest quarter.

Profitability and margins

• Adjusted EBIT margin at group level is positive and outperformed revenue growth, driven by operational efficiency gains from modular production.

• VMS segment showed strong margin and EBIT growth; M&I EBIT was impacted by timing and supplier issues but would be on par with last year without these.

• Bearing business revenues were flat, but EBIT and margins declined due to lower aftermarket business and U.S. tariffs.