Renk's Fifteenfold Earnings Jump and Record €6.9B Order Book Power Weekly Stock Gain

Renk Group reports fifteenfold EPS increase to €0.15, record order backlog of €6.9 billion, and 38% dividend hike, despite stock being down 28.5% YTD.

Renk Group delivered a striking first-quarter earnings improvement alongside a record order backlog, giving investors fresh confidence even as the stock remains deep in the red for the year. Earnings per share soared to €0.15 from just €0.01 a year earlier — a fifteenfold increase that underscores the defence supplier's operational turnaround.

The order book tells an even more compelling story. Renk booked €582.3 million in new orders during the first three months of 2026, up 6.1% year-on-year, driving the book-to-bill ratio to 2.1 times. The total order backlog hit an all-time high of €6.9 billion. Revenue rose 4.0% to €283.6 million, while adjusted EBIT advanced 10.4% to €42.4 million. Management held firm on its full-year guidance, targeting revenue above €1.5 billion and adjusted EBIT between €255 million and €285 million.

The shares have rallied 17% from a 52-week low of €43.99 reached in mid-May, including a 7.5% gain over the past seven days alone. On Tuesday, the stock added 2.2% to €51.51, then followed with a 2.4% climb to €51.81 on Wednesday — a move that saw it reclaim its 50-day moving average of €51.73. Despite the bounce, Renk remains roughly 28.5% lower year-to-date and trades 42% below its 52-week peak of €88.73. The relative strength index has risen to 78, placing the stock in overbought territory and raising the possibility of a near-term pullback.

A tailwind from the broader defence sector has helped lift sentiment. Strong results from peers such as CSG have triggered a wider recovery wave, and Renk is riding that momentum. The company also sweetened the outlook for income-focused investors: it will pay a dividend of €0.58 per share for 2025, a 38.1% increase, with the ex-dividend date set for 11 June and payment on 15 June. Analysts project a further rise to €0.72 per share for 2026.

Ownership dynamics are shifting as well. Defence group KNDS sold a 5.8% stake in Renk for approximately €262 million, paring its holding to roughly 10%. The two companies stressed that their operational partnership remains unaffected. Meanwhile, US asset manager Fidelity has built a position of 4.94% of voting rights, crossing the 3% reporting threshold and signalling growing institutional interest.

Renk's management is working the conference circuit hard. Executives presented simultaneously on investor days in Frankfurt and New York today, with a stop in Warsaw scheduled for the next two days. The virtual annual general meeting will take place on 10 June, and second-quarter results are due on 6 August 2026. For now, the record backlog and improving earnings provide the fundamental backbone the stock has long lacked, even if technical signals urge caution.