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MUNICH - RENK Group (FRA:R3NK) reported first quarter sales of €273 million, up 15% YoY but slightly below analyst expectations, as the German defense equipment manufacturer saw strong growth in its Vehicle Mobility Solutions (VMS) segment offset by a decline in Marine sales. The company’s shares edged up 0.5% following the earnings release.
RENK’s adjusted EBIT rose 38% YoY to €38 million, exceeding consensus estimates by 4%. This resulted in a margin expansion of 240 basis points to 14.1%, driven by improvements in both the VMS and Marine segments. However, free cash flow disappointed at -€25 million, falling short of the €12 million analyst consensus due to working capital impacts.
Order intake was a standout, surging 164% YoY to €549 million, primarily fueled by the VMS segment which benefited from two U.S. Army orders totaling over $150 million for Bradley and AMPV transmissions. The book-to-bill ratio reached 2.0x for the quarter.
“Our successful start to fiscal year 2025 underscores once again that we set the right strategic course to continue our sustainable growth. We increased our order intake more than twofold in Q1 2025 versus the prior-year quarter thanks to our strong defense business.
"We therefore remain at the same high level as at the end of last year, which shows that our customers value RENK as a reliable partner. We are fully on track to achieve our annual targets,” said Dr. Alexander Sagel, CEO of RENK Group AG.
RENK reiterated its fiscal year 2025 guidance for revenue exceeding €1.3 billion and adjusted EBIT between €210-235 million. The company also introduced a 2030 revenue ambition of €2.5-3.0 billion, including potential M&A activity.
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