IN Brief:
- RENK’s first-half order intake increased by 29.7% to €1.195 billion.
- Lynx, US Army, and Patria TRACKX work drove demand for military transmissions and final drives.
- The €7.4 billion backlog places greater pressure on factory capacity, suppliers, and programme delivery schedules.
RENK recorded almost €1.2 billion of order intake during the first half of 2026 as demand for military vehicle transmissions and final drives lifted the group’s backlog to €7.4 billion.
RENK Group reported order intake of €1.195 billion for the six months to 30 June, up 29.7% from €921.2 million a year earlier. Second-quarter intake reached €612.8 million, the highest quarterly figure in the company’s history, while the book-to-bill ratio increased from 1.5 to 1.9.
Revenue rose by 2.7% to €637.2 million as customer project schedules determined when equipment could be delivered and recognised. Adjusted EBIT increased by 10.1% to €98.2 million, lifting the adjusted margin from 14.4% to 15.4%. The order backlog stood at €7.4 billion, compared with €6.7 billion at the end of 2025.
The gap between order and revenue growth reflects the production cycle behind long-running defence programmes. Contract awards establish future workload, but transmissions, final drives, test equipment, and marine gear systems become revenue only after manufacturing, acceptance, and delivery milestones have been completed.
Vehicle Mobility Solutions supplied most of the momentum. Divisional order intake rose by 42.6% to €970.4 million, producing a book-to-bill ratio of 2.3. Revenue increased by 7.6% to €418.6 million, while adjusted EBIT rose by 20.5% to €80.3 million and the margin reached 19.2%.
Second-quarter demand included an extension of RENK’s framework agreement with Rheinmetall for the KF41 Lynx programme. The package covers transmissions and final drives valued at about €270 million, including options worth €63 million. RENK also received a further US Army order for HMPT 800 transmissions through the five-year THOR-IV framework, whose total potential value is up to $691 million.
The company recognised around €120 million of the US order in the second quarter against the contractual minimum quantity. It also secured its first series orders for propulsion systems for the Patria TRACKX all-terrain tracked armoured vehicle, widening the range of land programmes feeding the production plan.
Dr Alexander Sagel, chief executive officer of RENK Group, said: “Our order intake of close to €1.2 billion for the six-month period almost matched the volume for the first nine months of the previous year.”
Drivetrain availability sits behind the more visible debate about armoured-vehicle output. A platform manufacturer can expand hull fabrication and assembly, but deliveries still depend on specialist suppliers producing powertrain components to the required configuration and schedule. Transmissions must handle high torque, vehicle mass, thermal loads, steering functions, and demanding operating cycles while remaining maintainable across long service lives.
Repeatable manufacture and test capacity therefore matter more than the headline order total alone. RENK said efficiency gains from the modular production concept introduced in September 2025 contributed to the stronger margin, while planned expansion at Augsburg and Rheine remains on schedule. Modular production should move equipment through common processes more efficiently, although programme-specific configurations and acceptance requirements limit how far military drivetrains can be treated as interchangeable products.
The company’s move into wheeled armoured-vehicle transmissions adds another potential source of demand. Its ESM 280 launch extended the portfolio beyond established tracked-platform work, although the current half-year figures remain dominated by Lynx, US Army transmission support, and new tracked-vehicle propulsion orders.
Marine and Industry delivered a less uniform result. First-half order intake fell by 9.9% to €164.4 million and revenue declined by 6.1% to €165.1 million, but the second quarter produced strong double-digit order growth led by international frigate programmes. The division’s adjusted margin slipped from 10.7% to 9.9%.
RENK is also pursuing the acquisition of David Brown Defence, which would add technology, long-term programmes, and stronger access to Five Eyes markets. The company links the deal to Global Combat Ship opportunities covering as many as 34 vessels across Canada, the UK, Australia, and Norway. Completion is expected in the fourth quarter, subject to regulatory approvals.
Slide Bearings remained exposed to weaker civilian industrial markets and higher US tariffs, with first-half revenue and adjusted EBIT both declining. Defence demand is consequently carrying a larger share of group growth while non-defence end markets remain subdued.
Management has retained its 2026 forecast of more than €1.5 billion in revenue and adjusted EBIT between €255 million and €285 million. Meeting that guidance will depend less on finding orders than on converting a €7.4 billion backlog through expanded factories, qualified suppliers, and customer delivery schedules. RENK has secured the workload; production throughput will determine how quickly it becomes fielded vehicle capability.
