RENK Group (R3NK) Q4 2025 earnings summary

Executive summary

• Achieved record order backlog of €6.7B (+34% YoY), revenue of €1.37B (+20% YoY), and adjusted EBIT of €230M (+22% YoY), fully delivering on 2025 guidance despite external headwinds.

• Defense business was the main growth driver, with defense revenues up 24% and order intake up 4% (would be 19% adjusting for order shifts).

• Operational performance and capacity expansion initiatives, especially in Augsburg and Rheine, are on track, supporting future growth.

• Aftermarket business remains strong (35–40% of revenue), with plans to expand share to 40–50% by 2035.

• Proposed dividend of €0.58/share (+38% YoY), payout ratio at 41%.

Financial highlights

• FY 2025 revenue rose 20% YoY to €1.37B; adjusted EBIT increased 22% to €230M; adjusted EBIT margin improved to 16.9%.

• Order intake reached €1.6B (+9% YoY), with a book-to-bill ratio of 1.2; €200M in orders postponed to 2026.

• Net debt increased to €391M, leverage improved to 1.5x adjusted EBITDA.

• Free cash flow was €67M, impacted by working capital increases due to order timing.

• Net income after tax increased to €101.3M from €54.8M in the prior year.

Outlook and guidance

• 2026 revenue guidance: >€1.5B; adjusted EBIT €255–285M, aiming for upper half.

• Midterm targets reconfirmed: organic revenues €2.8–3.2B, adjusted EBIT margin >20%.

• Order intake visibility for 2026 is ~€2B, with strong pipeline in land and naval programs.

• CapEx to rise to near 5% of revenue in 2026, then near 4% in 2027, supporting growth.

• Cash conversion rate target remains above 80% on multi-year average.