Renk Group reports Q3 results in line with forecasts

Renk Group AG on Thursday reported third-quarter results that aligned with market expectations, with orders and adjusted earnings before interest and taxes approximately 2% above consensus estimates while sales matched forecasts.

The company’s adjusted EBIT for the quarter was 2% ahead of consensus, reflecting an 80 basis point year-over-year margin improvement to 17.6%. Order intake reached €469 million, also 2% above consensus and up 45% year-over-year, resulting in a book-to-bill ratio of 1.4x.

Sales increased 12% year-over-year, driven by the VMS division. The Vehicle & Marine Systems margin expanded 110 basis points year-over-year but fell short of analyst estimates by approximately 100 basis points and about 20 basis points below consensus. This was offset by stronger performance in the M&I and Slide Bearing divisions.

Third-quarter free cash flow came in at €11 million, below the €29 million consensus estimate. The nine-month improvement was driven by receivables phasing, while cash taxes and capital expenditures both increased.

Renk maintained its fiscal year 2026 guidance for revenue of approximately €1.4 billion and adjusted EBIT in the range of €240 million to €255 million. Management stated it remains confident in achieving the upper end of that range.

The guidance remains unchanged following the disposal of Slide Bearing and the completion of the David Brown Defence acquisition on November 2. The company expects fourth-quarter order intake of approximately €300 million to €400 million, maintaining its full-year order target of around €2 billion.