RENK, a leading manufacturer of tank transmissions, currently benefits from the defense boom and recorded a considerable increase in sales in the first quarter. With a gain of 22.5 percent, sales reached 237.7 million euros. The adjusted earnings before interest and taxes (EBIT) improved by almost half to 27.8 million euros, raising the margin from 9.9 to 11.7 percent. These positive results were announced on Wednesday by the company, which has recently moved up to the SDAX, in Augsburg.

Despite Good Results in Operational Business, There Was a Slump in Order Intake Which at 208.2 Million Euros Was More Than Half Below the Previous Year's Value. This Was Mainly Due to the Absence of Two Major Orders That Were Recorded in the Same Period of the Previous Year. In the End, RENK Recorded a Loss of 2.8 Million Euros, Corresponding to a Decline of 41 Percent Compared to the Previous Year, Primarily Due to a Higher Tax Burden.

Despite current challenges, RENK confirmed its annual forecast, which anticipates a revenue increase to 1 to 1.1 billion euros. The company expects that the operating profit before interest, taxes, and special effects will be between 16 and 18 percent of revenue.

The RENK share reacted with a slight decline of 0.29 percent to 27.69 Euros in XETRA trading, after initially rising in pre-market trading. This reflects the mixed feelings of investors who, on the one hand, welcome the solid operational results, but on the other hand also acknowledge the uncertainty regarding the sharp decline in order intake.