EQS-News

RENK Group continues growth path with strong order intake in the first half of 2023

EQS-News: RENK Holding GmbH / Key word(s): Half Year Results RENK Group continues growth path with strong order intake in the first half of 2023 01.09.2023 / 08:00 CET/CEST The issuer is solely responsible for the content of this announcement. Revenues grow by 7.9 percent year-on-year to EUR 410 million Adjusted EBIT margin[1] stable at 15.4 percent Fixed order backlog[2] with just under EUR 1.7 billion at all-time high ESG rating received from Sustainalytics

Augsburg, September 01, 2023. RENK Group, a leading global manufacturer of mission-critical drive technologies, continued its growth path in the first half of 2023. Revenues increased by 7.9 percent year-on-year to EUR 410 million (H1-22: EUR 380 million).

Adjusted EBIT grew by 5.5 percent to EUR 63 million, with a stable margin of 15.4 percent (H1-22: 15.7%). The Vehicle Mobility Solutions segment in particular contributed to this, recording robust organic growth by expanding revenue and margin. This was achieved primarily through an increasing aftermarket business. The acquisition of General Kinetics, which closed in January 2023 additionally contributed almost 45 percent to the segment’s growth. Investments such as this acquisition are made possible by RENK Group’s strong operating cash flow.

The fixed order backlog grew significantly by 21 percent in the first half of the year to approximately EUR 1.7 billion (financial year-end 2022: EUR 1.4 billion). This peak was already reached at the end of the first quarter and remained almost unchanged in the second quarter, despite the conversion of fixed order backlog into revenue growth. This was due to the strong order intake of major projects in the second quarter, including an additional order for the US Army's THOR III AMPV, the Norwegian Armed Forces’ WiSENT multi-purpose platform and the South Korean Navy’s KDX destroyer. In the Marine & Industry segment, RENK has also been able to win substantial orders. These include among others the reference project Global Hydro for a hydropower power station in Austria as well as turbo transmissions for Siemens compressors as part of the SALCOS project of Salzgitter AG for the production of ‘green steel’. For an EXMAR order, two LNG vessels will be fitted with emissions-reducing propulsion systems. These orders underline that mission-critical RENK technologies are highly trusted worldwide and are used in state-of-the-art platforms.