The United States-Iran war could lead to a boost in the Middle East’s defence spending, said German defence company Renk’s CEO Alexander Sagel.
Renk also reported record fiscal 2025 revenue, up 19.8% to EU€1.37 billion. Its order intake reached a new high of €1.57 billion, rising 9%.
“So far, I do not see that there is any negative impact [on orders] from, for example, the current crisis in the Middle East, the Iran war,” said Sagel on an earnings call. “This might lead overall, and this is really a gut feeling, to an overall increasing demand for defence capabilities in this region.”
Renk also received orders for new infantry fighting vehicle prototypes from a Gulf state the previous day, Sagel said. “It’s a kind of indication that I think this conflict could drive further defence spending, not only on air and not only on ammunition and not only on air defense systems, but also on ground based.”
The company’s 2025 revenue surge was driven by growth in its defence business, where revenue climbed 24%. Its Vehicle Mobility Solutions segment reported a 24.8% increase in revenue, while Marine & Industry revenue rose 15.3%.
Its adjusted EBIT increased 21.7% to €230 million during the year.
Around €200 million in defence orders were delayed from 2025’s fourth quarter to 2026, Renk said. The company’s fourth quarter results were also impacted by Germany’s new restrictions on sending weapons to Israel, as Israel represents between 2-3% of Renk’s portfolio.
For fiscal 2026, it expects revenue of more than €1.5 billion and adjusted EBIT of €255-285 million. The midpoint of its EBIT guidance was around 2% below consensus estimates, despite Sagel’s comments.
Renk (FWB: R3NK) shares closed 9.4% lower at €53.65. Its market capitalisation is €5.32 billion.
