Renk lifts 2030 revenue goal but shares fall 3% on mild near-term guidance

Investing.com -- Renk Group AG (ETR:R3NK) on Thursday raised its 2030 revenue target while its shares fell 3% after the company issued only limited adjustments to its nearer-term outlook.

The German defense supplier  lifted its 2030 ambition for organic sales to a range of €2.8 billion to €3.2 billion. The previous indication of €2.5 billion to €3 billion had included contributions from acquisitions.

Renk said up to €1 billion could now come on top of the new organic target through mergers and acquisitions, a shift that separates the two components and expands the upper end of its earlier expectations. Jefferies noted that consensus sits about 3% below the midpoint of the updated organic framework.

Alongside the revenue goal, the manufacturer introduced a new profitability marker for 2030: an EBIT margin of more than 20%. 

Based on that threshold, Renk said the target implies adjusted EBIT of about €575 million to €690 million. At the midpoint, that figure is also about 3% above consensus. 

The margin goal creates a clearer benchmark than earlier long-term commentary, which did not specify a formal threshold.

The company’s outlook for the years leading up to 2030 shifted only slightly. Renk now expects 2028 revenue to be above €2 billion, compared with its earlier indication of about €2 billion. For 2027, the adjusted EBIT target was lifted to above €300 million from about €300 million. 

Jefferies said this may be seen as a limited change because consensus expectations for 2027 adjusted EBIT are around €365 million. 

As Jefferies said, the guidance for those years was “only tweaked to ‘above’ the prior guide.”

The company reiterated its 2025 guidance, first issued in its third-quarter update. RENK continues to expect revenue of more than €1.3 billion next year and adjusted EBIT of €210 million to €235 million. 

No changes were issued to that outlook, and Jefferies said the reiteration followed the update last week.

The brokerage flagged the company’s description of its new long-term benchmarks during the ongoing webcast, noting the phrasing: RENK “raised its 2030 ambition to €2.8-3.2bn of organic sales … and up to €1bn of M&A on top,” and added a new target of “a >20% margin.” 

Those statements framed the distinction between organic growth and acquisition-driven expansion and marked the first explicit margin goal for 2030.