Defence Supplier Renk's CEO Secures Long-Term Deal as Shares Touch Fresh Low
12.05.2026 - 13:55:16 | boerse-global.de
The Augsburg-based drivetrain specialist Renk finds itself in an unusual position: its board is betting on stability while the market is battering its stock. Chairman Claus von Hermann moved to extend chief executive Alexander Sagel’s contract by five years, locking him in until the end of March 2032. Sagel, who took the helm just three months ago in February 2025, is being rewarded for steering the company through a surge in military orders from Germany’s Bundeswehr, NATO allies and other international armed forces. Von Hermann stressed that maintaining reliable delivery capacity has become the overriding priority in the defence industry, and that keeping Sagel in place ensures continuity.
The operational numbers certainly support the board’s confidence. Renk ended last year with revenue up a fifth to €1.37 billion, while order intake hit a record €1.57 billion. Adjusted EBIT climbed 21.7 percent to €230 million, yielding a margin of 16.9 percent. The momentum has carried into 2025: first-quarter orders reached €582.3 million, a 6.1 percent year-on-year increase, and adjusted EBIT rose 10.4 percent to €42.4 million. More strikingly, net profit for the quarter ballooned to €15.4 million from less than €1 million a year earlier. Management now expects full-year revenue to top €1.5 billion and operating profit to land between €255 million and €285 million.
Yet at the stock exchange, none of this seems to matter. Renk shares slumped 4.31 percent on Tuesday to €44.30, after touching an intraday 52-week low of €44.80. The weekly decline now stands at 20.44 percent, and the stock has halved since its October peak of €88.73. The distance from its long-term average has widened to 26.16 percent, reflecting the intense selling pressure that has taken hold.
Should investors sell immediately? Or is it worth buying Renk?
Market watchers point to a broader rotation out of defence stocks. Even sector heavyweight Rheinmetall has been losing ground recently, and Renk has been hit particularly hard by the technical breakdown of key support levels. If the price fails to hold above the current lows near €45, analysts warn of further chart-driven losses that could push the stock toward the €40 mark.
Against this turbulent backdrop, Renk is pushing ahead with its long-term strategy. The company is rolling out its “NextGen Mobility” agenda to adapt its portfolio for future battlefield requirements, while also pursuing international expansion and targeted M&A to underpin mid-term targets. The next major milestones for investors include the International Investment Forum on 20 May, the annual general meeting on 10 June, and the publication of second-quarter results on 6 August.
For now, the €44.30 mark serves as the immediate reference point for market sentiment — a line where faith in Renk’s operational strength collides head-on with the selling pressure in the charts. The board’s decision to extend Sagel’s mandate is a clear signal of internal conviction. Whether that conviction can win over the market remains the open question.
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