RENK posts record profits but stock lags on F126 frigate delays
German defence firm RENK has reported its strongest financial results yet, with record revenue and soaring profits for 2025. The company's shares, however, have struggled amid ongoing delays in the German Navy's F126 frigate program. Meanwhile, Rheinmetall is pushing for a quick restart of the €10 billion project, positioning itself as a potential lead contractor.
RENK announced its 2025 earnings with revenue hitting €1.37 billion, the highest in its history. Net profit more than doubled to €101 million, while its order backlog swelled to €6.68 billion. Shareholders will see a 38 percent dividend increase to €0.58 per share, with the ex-dividend date set for June 11, 2026.
Looking ahead, RENK expects revenue to exceed €1.5 billion in 2026, with adjusted EBIT projected between €255 million and €285 million. The next quarterly update is scheduled for May 6, 2026. Despite these strong figures, the company's share price remains over 40 percent below its October 2025 peak and well under its 200-day average. The uncertainty stems from the delayed F126 frigate program, the German Navy's largest newbuild project. Valued at around €10 billion, it calls for six advanced frigates. Rheinmetall is lobbying for a swift restart, though a decision may not come before late April. A contract award could follow as early as this summer. Investor confidence has wavered, with RENK's shares dropping by roughly three percent and ThyssenKrupp Marine Systems losing nearly seven percent in recent trading. Rheinmetall, with a market capitalisation of about €72 billion, remains a key player in the bidding process.
RENK's financial performance has reached new highs, yet its stock continues to face pressure from delays in the F126 program. The German Navy's decision, expected by late April, could determine the next steps for both the project and the companies involved. A contract award this summer may bring clarity to the market.
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