Renk cuts 2026 profit outlook to 240–255 million euros as it agrees bearings sale
Key Facts
Renk cut its forecast for adjusted earnings before interest and taxes for fiscal 2026 to between 240 and 255 million euros as it announced an agreement to sell its plain bearings business to Miba. The group said in the statement announcing the deal that its new guidance also targets revenue of around 1.4 billion euros for the year. The revision covers continuing operations after excluding the bearings business from the scope of the group's financial forecasts. Renk said it would classify the unit earmarked for sale as a "discontinued operation" as part of the accounting treatment of the divestment. Continuing operations covered by the new guidance will comprise Vehicle Mobility Solutions and the Marine & Industry segment. The statement thus links the revision to expected revenue and earnings to a change in the scope of businesses included, alongside the refocusing of the group's portfolio on land and naval defense solutions.
Renk had reaffirmed guidance in its first-quarter report targeting consolidated revenue of more than 1.5 billion euros for fiscal 2026, before announcing the change in business scope. That previous guidance put adjusted earnings before interest and taxes in a range of 255 to 285 million euros. The company had described its annual outlook at the time as "unchanged," according to the report, which covered group-level revenue and earnings. In setting out the scope of the announced divestment, Renk confirmed that the deal "does not affect" the civilian businesses within its Marine & Industry segment. It said those businesses share integrated production with defense operations and will remain within the segment covered by the continuing-operations guidance.
The bearings sale is part of Renk's strategy to focus capital and capabilities on land and naval defense solutions, according to the company's statement. The group aims to generate about 90% of its revenue from defense businesses by 2030, according to its investor relations page. The target sets out the weight Renk intends to give that business within its portfolio in the coming years. As part of the same expansion, the group announced an agreement to acquire David Brown Defence, alongside the announced bearings divestment. The target company operates from the United Kingdom and specializes in high-precision gearboxes for the naval and land defense sectors, according to Renk's acquisition announcement.
The bearings business recorded a decline in revenue and profitability in the first half of 2026, according to Renk's results for the period. Revenue totaled 59.9 million euros, compared with 62.7 million euros in the first half of 2025, a year-on-year decline of 4.4%. Adjusted earnings before interest and taxes for the business reached 7.5 million euros, compared with 10.4 million euros in the corresponding period. The adjusted earnings margin also fell to 12.5%, from 16.6% in the first half of the previous year. The company attributed the margin decline to economic pressure on the industrial end markets served by the business. It also cited the impact of U.S. tariffs, which it described in its first-half results statement as "significantly higher" than in the corresponding period.
Completion of the sale of the plain bearings business to Miba remains subject to customary regulatory approvals, according to Renk's statement on the agreement. The parties agreed to keep the purchase price confidential, according to the company's press release. The group said in this regard that "both parties have agreed to keep the purchase price confidential." On upcoming financial disclosures, Renk scheduled its results announcement for 5 November 2026, according to the financial calendar in its first-quarter report. The results due to be published then will cover the period ended 30 September 2026.