RENK Group aims to double group revenue in the medium term

“The geopolitical tensions have increased significantly and threaten our free democratic order. Armed forces worldwide face the challenge of modernizing their equipment and closing capability gaps through expansion. In the coming years, defense spending will increase massively worldwide,” said Susanne Wiegand, CEO of RENK Group AG. “As a global market leader for mission-critical drive systems, RENK has a responsibility to strengthen the defense capability of Germany and its alliance partners. We will do our part by further expanding our market presence and developing innovative, holistic drive solutions in collaboration with our customers to meet the increasing demands in the military sector. RENK is ready to take the next steps on its growth path.”

Most of the organic growth is expected to come from the Vehicle Mobility Solutions segment, followed by the Marine and Aftermarket business. In the Vehicle Mobility Solutions segment, the focus is on expanding core markets in Europe and the US while also developing other high-growth markets. In the Marine business, RENK intends to expand further into the APAC region and strengthen its presence in the US. Due to increased equipment usage through training and deployments, significant growth is also expected in the Aftermarket business. Here, the company aims to further expand customized service offerings for the respective markets. In addition, RENK sees significant growth opportunities through strategic M&A activities on the global markets. The focus here is on the defense sector and an approach adapted to local conditions.

Expanding technology leadership with a focus on electrification, hybridization and digitalization

Moreover, RENK aims to strengthen and further expand its technology leadership across all segments. “At the core of our technology is the enhancement of armed forces’ mobility, which will gain even more significance in the future,” said Dr. Alexander Sagel, COO of RENK Group AG. “Our state-of-the-art, hard-to-reproduce and complex technologies are unmatched in the market. We stand out through precision and reliability. In the future, we will expand our technological portfolio and focus on three future areas: electrification, hybridization and digitalization.”

Global rollout of the RENK Production System initiated

RENK operates globally with 21 locations including 14 production and MRO sites and has a robust production network. Following the successful development and scaling of production at the Augsburg site, the transformation of production at the Muskegon site in the US was successfully initiated this year. Based on the experiences in Augsburg and Muskegon, the RENK Production System is to be rolled out across all locations to create additional synergies and strengthen cross-location collaboration.

“We have delivered what we promised. Our strong performance in the current fiscal year provides a solid foundation for our medium-term growth targets,” said Anja Mänz-Siebje, designated CFO of RENK Group AG, who will succeed Christian Schulz as the Executive Board member for Finance and IT on October 1, 2024. “The increasing demand for RENK technologies is reflected in our order intake. We are very optimistic that we will achieve our goal of 15% annual revenue growth and an adjusted EBIT of € 300 million,” Anja Mänz-Siebje continued.