RENK Group has increased its order backlog to a record €7.4 billion after first-half demand rose sharply for transmissions and propulsion systems used in military land and naval platforms.
Order intake reached €1.195 billion during the first six months of 2026, an increase of 29.7% from €921.2 million a year earlier. The second quarter contributed €612.8 million, the highest quarterly order intake recorded by the company.
Revenue rose by 2.7% to €637.2 million, while adjusted earnings before interest and tax increased by 10.1% to €98.2 million. The adjusted EBIT margin improved by one percentage point to 15.4%, and the group’s book-to-bill ratio rose from 1.5 to 1.9.
The figures show a business receiving orders considerably faster than it is converting them into revenue. That supports future factory loading, but it also increases the importance of production capacity, component supply, workforce availability, programme scheduling, and customer acceptance.
Vehicle Mobility Solutions was the principal growth driver. The division’s order intake increased by 42.6% to €970.4 million, giving it a book-to-bill ratio of 2.3. Revenue rose by 7.6% to €418.6 million, while adjusted EBIT increased by 20.5% to €80.3 million.
The division supplies transmissions, final drives, power packs, and associated mobility systems for tracked and wheeled vehicles. These assemblies combine mechanical gearing, controls, cooling, lubrication, and interfaces with the engine and drivetrain, making them central to vehicle performance, maintainability, and fleet availability.
Second-quarter demand included an extension to RENK’s framework agreement with Rheinmetall for the KF41 Lynx programme. The order covers transmissions and final drives worth approximately €270 million, including options valued at €63 million.
RENK also received a follow-on order for HMPT 800 transmissions through the US Army’s five-year THOR-IV framework. Approximately €120 million was recognised as second-quarter order intake against the contractual minimum quantity, while the wider framework has a potential value of up to $691 million.
First series orders were also secured for propulsion systems used by the Patria TRACKX all-terrain tracked vehicle. These programmes contribute volume, although configuration control becomes more demanding as systems are supplied to different customers, vehicle variants, and national support arrangements.
Production growth has been supported by a modular manufacturing concept introduced at Augsburg in September 2025. RENK attributed part of the margin improvement to scale benefits and efficiency gains from the new approach, alongside scheduled capacity expansion at Augsburg and Rheine.
Modular production can allow assemblies or manufacturing stages to be standardised across programmes while preserving customer-specific interfaces. The commercial benefit depends on disciplined product architecture: common parts and processes must remain genuinely common rather than accumulating minor variations that create more drawings, stock, test procedures, and supplier requirements.
The order growth was not evenly distributed across the group. Marine & Industry recorded first-half order intake of €164.4 million, down by 9.9% from €182.6 million, although the second quarter improved as orders were received from international frigate programmes.
Revenue in the division declined by 6.1% to €165.1 million, and adjusted EBIT fell to €16.3 million. RENK said weak wider industrial markets continued to affect demand despite the stronger naval position.
The Slide Bearings division also faced difficult industrial conditions. Orders declined by 3.2% to €64.2 million, with revenue down by 4.4% to €59.9 million. Adjusted EBIT fell by 28% to €7.5 million, reducing the division’s margin from 16.6% to 12.5%.
RENK attributed part of that pressure to higher US tariffs as well as weak industrial end markets. The contrast between defence propulsion and civil industrial products provides a reminder that a strong group backlog can conceal very different operating environments inside one manufacturing organisation.
The company has confirmed its full-year forecast for revenue above €1.5 billion and adjusted EBIT between €255 million and €285 million. Achieving that guidance will require a substantial increase in second-half deliveries compared with the first six months.
RENK is also progressing its proposed acquisition of David Brown Defence, subject to regulatory approval. The transaction would add technology and access to programmes in Five Eyes countries, including the Global Combat Ship programme involving the UK, Canada, Australia, and Norway. Completion is expected during the fourth quarter.
Acquisition activity and rising defence orders create additional integration demands. Product data, supplier approvals, manufacturing processes, quality systems, intellectual property, and programme reporting have to be aligned without disrupting existing deliveries. In propulsion manufacturing, replacing an unavailable specialist component is rarely as simple as buying an equivalent part elsewhere.
The €7.4 billion backlog gives RENK long-term visibility, but it also represents an obligation extending through factories and suppliers that must expand under close technical control. The first-half figures show strong demand; the more difficult measure will be whether capacity and output increase at the same rate without leaving the weaker industrial divisions further behind.
