Orders outpaced revenue growth for the German Leopard 2 tank supplier in the first half of the year, reaching a record €7.4 billion backlog, with more than 90% of 2026 revenue already contractually secured.
German defence supplier Renk reported record first-half order intake of €1.2 billion on Thursday, up 29.7% year-on-year, as rising European military spending drove demand for armoured-vehicle and naval propulsion systems.
Revenue rose only 2.7% to €637.2 million and adjusted operating profit increased 10.1% to €98.2 million. Renk reaffirmed its full-year guidance, targeting revenue above €1.5 billion and adjusted operating profit of €255 million-€285 million, and said it continued to aim for the upper half of that range. More than 90% of planned 2026 revenue is already contractually secured.
Meanwhile the order backlog reached a record €7.4 billion, up from €6.7 billion at the end of 2025. Renk’s Vehicle Mobility Solutions division, which supplies transmissions for armoured vehicles including the Leopard 2, accounted for most of the growth, with orders up 42.6% to €970.4 million. Revenue in the division rose 7.6% to €418.6 million.
Renk’s smaller Marine and Industry division saw first-half orders fall 9.9%, although second-quarter orders recovered strongly as international frigate programmes generated new business. Its industrial activities remained under pressure from weak demand.
The results come after Renk agreed in July to acquire UK gearbox specialist David Brown Defence from Stellex Capital Management. The acquisition will add submarine gearbox technology to Renk’s portfolio and expand its access to major naval programmes in the UK, Canada and Australia, including the Type 26 and Hunter-class frigates.
David Brown Defence has a secured order backlog and pipeline worth more than £700 million through 2030. The acquisition is expected to close in the fourth quarter, with the companies not disclosing financial terms.
The strong order intake contrasted with more modest revenue growth, reflecting the time needed to convert new contracts into production and deliveries. Renk said it was continuing to expand capacity at its Augsburg and Rheine sites to meet demand.
The results add to signs that Europe’s rearmament is creating stronger demand not only for major weapons platforms but also for the propulsion and specialist systems that enable them, while defence suppliers are using acquisitions to expand their capabilities and access to new markets.
Other recent earnings include: BAE Systems, Leonardo, Rheinmetall, Hensoldt, Dassault Aviation and Safran.
