RENK Group (R3NK) Q4 2024 earnings summary

Executive summary

• Achieved strong FY 2024 performance with revenue up 23.2% year-over-year to €1,141m and adjusted EBIT up 26% to €189m, at the top end of guidance.

• Order backlog reached €5 billion, about 4.3 times last 12 months' revenues, driven by major defense orders and a robust soft order pipeline.

• Significant operational improvements, especially in the VMS segment, and efficiency gains across the production network.

• Aftermarket business now represents 40% of sales, with defense share at 72% and a diversified regional customer base.

• Leadership changes with a new CEO and COO, and entry into the MDAX index.

Financial highlights

• Revenue: €1,141m (+23.2% YoY); Adjusted EBIT: €189m (16.6% margin, +26% YoY); Operating profit increased 30% YoY to €160m.

• Net income after tax: €54.8m (up from €32.3m in 2023).

• Free cash flow post-interest payments was €87.4m, up from €21.1m in 2023; cash conversion rate: 84.4%.

• Net leverage reduced to 1.7x from 2.4x; ROCE increased to 19.7%.

• Proposed dividend up 40% to €0.42 per share.

Outlook and guidance

• 2025 revenue expected to exceed €1.3 billion, with adjusted EBIT between €210–235 million.

• Medium-term targets unchanged: 15% CAGR for revenue and €300 million adjusted EBIT by 2027.

• Additional upside from increased European defense budgets not yet included in guidance.

• Continued focus on operational excellence, efficiency, and capacity expansion to support growth.

• Strong start to 2025 with major orders and robust operational performance.