Renk cuts 2026 profit outlook to 240–255 million euros as it sells bearings unit
Key Facts
Renk Group announced it would sell its plain bearings unit to Austrian industrial and technology group Miba and revised its financial outlook for the current year, 2026, to reflect the business's exclusion from continuing operations. The group said in its statement that expected adjusted earnings before interest and taxes now ranged between 240 and 255 million euros. It forecast revenue from continuing operations of about 1.4 billion euros, reflecting a change in the scope of businesses covered by its annual estimates. The parties agreed to keep the purchase price confidential. Completion of the sale remains subject to customary regulatory approvals, according to Renk's statement.
When it announced its first-half results, Renk had reaffirmed its forecast for revenue of more than 1.5 billion euros in 2026. At the time, it also expected adjusted earnings before interest and taxes of between 255 and 285 million euros. Under the accounting treatment announced alongside the sale, the group will classify the plain bearings unit as discontinued operations starting in the fourth quarter of 2026. The annual outlook will cover only continuing operations in the Vehicle Mobility Solutions and Marine & Industry segments. The revision to revenue and earnings estimates reflects this shift to a scope that excludes the unit slated for sale, according to the group's statement.
The plain bearings business is based in Hanover, and its products are used primarily in industrial and civilian markets, according to Renk. The unit produces bearings for electric motors, generators and pumps, activities covered by the sale agreement with Miba. The business has operated since October 2025 as a standalone company called Renk Bearings. On the buyer's side, Miba Chief Executive F. Peter Mitterbauer linked the deal to pooling and strengthening industrial expertise. Mitterbauer said in the statement: "Through the sale, we aim to pool and strengthen our expertise."
First-half results showed revenue at the plain bearings unit fell to 59.924 million euros, according to the group's financial report. The unit's revenue had stood at 62.709 million euros in the corresponding period a year earlier. Its adjusted earnings before interest and taxes totalled 7.509 million euros in the first half of the current year. That compares with adjusted earnings before interest and taxes of 10.422 million euros in the corresponding period, according to the same report. Renk attributed the decline in the unit's profit margin to pressures facing industrial markets, alongside higher U.S. tariffs compared with the corresponding period.
Renk presents the disposal of its bearings business as a step in implementing its strategy to sharpen the group's focus on defence. It aims to increase defence activities' share of total revenue to around 90% by 2030, according to its statement. It said the sale would allow capital and capabilities to be directed towards land and naval defence solutions. At the same time, it said the transaction would not affect civilian activities within the Marine & Industry segment. It described these activities as integrated with defence operations in production terms, pointing to growth opportunities in power generation and infrastructure.
The portfolio shift comes after the group's new orders rose to about 1.2 billion euros in the first half of 2026. Orders totalled about 921.2 million euros in the first half of 2025, putting the annual increase at 29.7%, according to Renk's results announcement. The group had previously signed a binding agreement to acquire Britain's David Brown Defence to strengthen its naval portfolio. The British company specialises in precision gearboxes used in naval and land defence, and Renk set the fourth quarter of 2026 as the expected completion date for the acquisition, subject to official approvals. The group is scheduled to announce its nine-month results for 2026 and hold its earnings conference on 5 November 2026, according to its investor relations calendar.