The chief executive of German defence supplier Renk Group has put his own money behind the company, buying shares worth €238,802.94 on the same day it reported a sharp rise in orders.

Dr Alexander Sagel bought 6,790 shares at €35.17 each in Xetra trading on Thursday, 5 November, according to a mandatory disclosure filed with German regulator BaFin. The purchase was made on the day Renk published its results for the first nine months of 2026.

Renk shares rose on Monday, 9 November, closing at €35.79 on Xetra, up 4.6 percent from Friday's close of €34.20, as European defence stocks rallied. The Stoxx Europe defence sector rose 4.2 percent on the day, leading the wider market higher.

Orders outpace sales

The nine-month figures show order intake running well ahead of revenue. Incoming orders reached €1,664.4 million in the first nine months of 2026, up 33.6 percent on the same period last year, while the order backlog stood at €7.6 billion at 30 September, a record for the Augsburg-based maker of transmissions and drive systems for military vehicles and ships.

Revenue for the same period rose 5.8 percent to €982.0 million, and adjusted operating profit climbed 12.7 percent to €158.8 million, meaning profitability improved faster than sales. In the third quarter alone, revenue rose about 12 percent to roughly €350 million, with adjusted operating profit up 17 percent.

Sagel cautioned, however, that turning the record backlog into revenue may take longer than planned, pointing to scheduling shifts at major defence contractors that could slow the translation of orders into sales. The gap between intake and revenue growth is the main question hanging over the stock.

Brokers stay bullish

Broker opinion has stayed constructive despite that warning. Deutsche Bank Research reiterated its buy recommendation after the results, keeping a €73 price target, more than double the current share price, although analyst Christophe Menard flagged free cash flow as the weak spot. Jefferies also kept its buy rating, with a €60 target, and DZ Bank reiterated its buy recommendation with a fair value estimate of €56.

Management left its full-year guidance unchanged. Renk still expects revenue of about €1.4 billion for 2026 from its continuing operations, with adjusted operating profit of between €240 million and €255 million. From the fourth quarter, the plain bearing division will be reported as a discontinued operation, which changes what the guidance covers.

Submarine work in focus

The portfolio has also been reshaped. About a week before the results, Renk completed its acquisition of David Brown Defence from Stellex Capital Management, after receiving all required regulatory approvals. The Huddersfield site will now serve as a centre of competence for submarine propulsion systems under the name RENK UK Huddersfield.

On 29 October, Renk said its Magnet-Motor unit had won an order from Saab for a submarine programme run by a NATO member state, and the company showcased its maritime portfolio at the Euronaval trade fair in Paris from 3 to 6 November.

Investors will get a fuller picture of where the group is heading on 8 December, when Sagel is scheduled to outline the company's strategy at a hybrid update in London. This article is for information only and is not investment advice.