Revenue also saw significant growth, rising by 14.7% to €273 million (2024: €238 million), while adjusted EBIT climbed by 38.1% to €38 million (Q1 2024: €28 million). The EBIT margin improved by 2.4 percentage points to reach 14.1% in the first quarter.
Dr. Alexander Sagel, CEO of RENK Group AG, highlighted the company’s strategic success, stating, “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.”
A major contributor to RENK’s performance was the Vehicle Mobility Solutions (VMS) segment, which recorded a remarkable 28.1% revenue increase to €172 million (Q1 2024: €134 million). Adjusted EBIT from the VMS segment surged by 46.6% to €29 million, with the margin also rising to 16.6% from 14.5%.
The VMS segment’s success was largely driven by two substantial orders from the U.S. Army, valued at over US$150 million. These contracts involved the supply of HMPT transmissions for the Bradley Fighting Vehicle (BFV) and Armored Multi-Purpose Vehicle (AMPV) platforms. The order intake for VMS rose by an impressive 404.2% to €397 million.
The Marine & Industry (M&I) segment, however, experienced a moderate revenue decline of 6.9% to €73 million due to project delays. Despite this, adjusted EBIT increased by 54.7% to €7 million, and the EBIT margin rose to 10.2% from 6.1%. Major orders from international marine customers contributed to a 24.9% rise in order intake, totaling €122 million.
RENK’s Slide Bearings segment performed as anticipated, with revenue increasing by 6.8% to €31 million and adjusted EBIT growing by 9.3% to €5 million. The EBIT margin also rose slightly to 17.3%. Despite a small drop in order intake of 5.2% to €37 million, the segment remained stable.
Dr. Emmerich Schiller, COO of RENK Group AG, expressed optimism, saying, “We got off to a good start in the new fiscal year. The effects of the established efficiency measures remain tangible and are increasing our operational excellence.”
Looking ahead, the Management Board has reaffirmed its guidance for 2025, expecting revenue to exceed €1.3 billion and adjusted EBIT between €210 million and €235 million. The company also maintains its medium-term goals of €2 billion revenue by 2028 and €300 million EBIT by 2027.
Anja Mänz-Siebje, CFO of RENK Group AG, commented on the company’s robust outlook: “We demonstrated in the first quarter that RENK stands for sustainable and profitable growth. Our record order backlog provides revenue visibility for the coming years and thus also a stable base on which to meet our financial targets.”
Source: RENK Group AG.
