Renk CEO Opens Wallet on Results Day as Broker Targets Split and Portfolio Reshapes

Dr. Alexander Sagel used the day Renk Group published its nine-month figures to add to his own holding, buying shares worth EUR 238,802.94 on Thursday, according to a mandatory disclosure. The chief executive's purchase came as the defence contractor flagged that work on major armaments programmes could slip, a warning that weighed on the stock alongside a fresh guidance cut from Rheinmetall that dragged the wider sector lower.

Order Book at Record, Cash Conversion Under Scrutiny

The backlog tells one story; the top line tells another. Order intake for the nine months reached EUR 1.66 billion, up 33.6%, and the order book stood at a record EUR 7.6 billion at the end of the period — as of 30 September. Revenue, by contrast, advanced 5.8% to EUR 982.0 million. Adjusted operating profit grew 12.7% to EUR 158.8 million, a margin of 16.2%.

Management's caution centred on delays at large defence prime contractors, which Reuters reported could slow the conversion of backlog into sales. For the full 2026 financial year, Renk continues to guide continuing operations to revenue of around EUR 1.4 billion and adjusted EBIT of EUR 240 million to EUR 255 million.

Two Brokers, Two Targets

Analysts were not put off. Deutsche Bank Research reaffirmed its buy rating and EUR 73 price target on Friday, a day after the results, according to media reports. Jefferies had already kept its buy recommendation in place on Thursday, with a EUR 60 target — leaving a notable gap between the two houses on where the shares should trade.

Huddersfield Joins, Bearings Business Exits

The results landed just over a week after Renk closed its acquisition of David Brown Defence from Stellex Capital Management, having secured the necessary regulatory clearances. The business now trades as RENK UK Huddersfield and is earmarked as a centre of excellence for submarine propulsion systems. On the company's own account, David Brown Defence brought an order book and pipeline totalling more than GBP 700 million across 2026 to 2030.

Running in parallel is a divestment: roughly three weeks ago Renk signed a binding agreement to sell its plain bearings operations to Miba, a move it frames as part of a strategic realignment. The two transactions sit at different stages — the UK purchase is complete, while the bearings deal remains a signed contract.

Sagel is due to set out the group's strategic direction in more detail at a hybrid strategy update in London on 8 December.