Renk’s Drive-by-Wire Bet: From Gearboxes to Autonomous Systems Amid a Record Backlog and a Stubborn Discount

Defence specialist Renk unveils drive-by-wire unmanned vehicle with Patria, expands beyond tanks, but shares languish 47% below peak despite record orders and raised dividend.

The Augsburg-based defence specialist is using this week’s Eurosatory exhibition in Paris to show investors it is far more than a maker of tank transmissions. Renk unveiled a heavy unmanned ground vehicle concept developed with Finnish partner Patria, powered by the newly engineered HSWL 076 gearbox. What sets it apart is drive-by-wire technology — steering, braking and propulsion are all electronic, with no mechanical linkage. The company bills this as a prerequisite for next-generation autonomous military vehicles.

At the same time, Renk is branching out beyond its traditional stronghold in heavy tracked armour such as the Leopard 2. The new ESM 280 gearbox targets armoured wheeled vehicles, capturing demand from rapid-deployment forces and reducing reliance on a handful of mega-projects. The strategic pivot to becoming a full system integrator for autonomous drives was a central theme of the “NextGen Mobility” showcase in Paris.

Operationally, the numbers remain robust. The order backlog stands at a record €6.9 billion, of which €2.6 billion is already contracted. First-quarter order intake hit €582 million — the strongest start to a year in the company’s history. Management confirms the 2026 revenue target of more than €1.5 billion, with over 90 percent covered by firm orders. In June, the 4,000th HSWL-354 gearbox for the Leopard 2 rolled off the line, underscoring steady execution.

The disconnect with the stock market, however, is stark. Renk shares changed hands at €47.05 on Wednesday, roughly 47 percent below the October peak of €88.73. The stock has lost nearly 32 percent over the past twelve months and trades about 19 percent below its 200-day moving average. The annual dividend was lifted 38 percent to €0.58 per share at the June 10 annual general meeting, where Dr. Klaus Richter — formerly of Airbus and Diehl — took over as chairman of the supervisory board. None of that has arrested the decline.

Jefferies recently trimmed its price target from €78 to €70 but retains a buy rating, calling land systems one of the most attractive sub-sectors within defence. Technically, the relative strength index sits at 42.3, in neutral territory, while the 50-day line at €51.03 is the nearest overhead resistance. The next catalyst is a strategy presentation scheduled for late June, where management is expected to flesh out an investment programme of up to €325 million through 2028, targeting digitalisation and predictive maintenance to boost profitability.

Full second-quarter results are due on August 6. By then, Renk will have to demonstrate not only that its system-integrator story resonates with customers, but that it can finally close a valuation gap that has left the share price languishing in the shadow of a record order book.