Renk Logs Record Q1 Orders and US Army Contract Win, Yet Shares Sink to New Low

Despite record Q1 orders, a major US military tech deal with BAE, and CEO extension, Renk's stock plunges to a 52-week low as market ignores strong fundamentals.

A chasm has opened between Renk’s operational momentum and its stock price. The defence supplier booked its strongest-ever first quarter, inked a major US military technology deal and locked in its chief executive for another six years — yet the shares collapsed to a fresh 52-week low on Tuesday.

The company’s order intake surged to roughly €582 million in the three months to March, a record for any opening quarter. Adjusted operating profit climbed to €42.4 million, lifting the corresponding margin to 15%. The total order backlog swelled to nearly €7 billion, providing multi-year revenue visibility. Management confirmed its full-year target of pushing sales past €1.5 billion.

Underpinning the growth is a push into the United States. Through its subsidiary RENK America, the group has partnered with BAE Systems to develop a drive-by-wire system for the US Army’s Armored Multi-Purpose Vehicle (AMPV) programme. The technology enables autonomous operations and can be adapted for other armoured platforms. Renk’s transmissions are already installed in every medium-weight tracked vehicle used by the US armed forces.

The board signalled its confidence in the strategy by extending CEO Alexander Sagel’s contract to the end of March 2032. Chairman Claus von Hermann highlighted the company’s high delivery reliability, which has become increasingly critical as demand from the Bundeswehr and NATO accelerates.

None of this has impressed equity investors. Renk’s stock closed at €44.73 on Tuesday, a new year-to-date low. The shares have lost nearly 19% since the start of 2026 and have almost halved from their October record. In the past week alone the decline accelerated to roughly 17%.

Analysts remain broadly bullish despite the sell-off. Among 14 experts covering the stock, the consensus is a buy with an average price target of around €68. Warburg Research reaffirmed its buy recommendation after the numbers, arguing that Renk is on track to hit the upper end of its guidance range.

Ahead lie several catalysts that could shift sentiment. On 20 May the company will present at the International Investment Forum. The annual general meeting follows on 10 June, with a proposed dividend of €0.58 per share. The stock will trade ex-dividend the next day. The next hard operational test comes in August, when second-quarter results are due. For now, the market is refusing to give Renk credit for the strength of its order book — a divergence that bulls argue will eventually narrow.