Renk books record orders but holds guidance steady

Aug 6 (Reuters) - German defence supplier Renk Group AG booked its strongest quarterly order intake on record between April and June, lifting its backlog to 7.4 billion euros ($8.55 billion), the company said on Thursday.

The company held its full-year guidance steady as investors weigh how quickly Europe's rearmament boom will translate into earnings and cash flow.

Renk, which makes transmissions for the Leopard 2 and Puma armoured vehicles as well as naval propulsion systems, said order intake in the second quarter was the highest ever recorded for the company in a single quarter, at 612.8 million euros.

That lifted first-half order intake to around 1.2 billion euros, supported by strong demand from defence customers and a book-to-bill ratio of 1.9 times.

The results come as Renk shares have fallen more than 45% from their October 2025 peak despite a surge in orders. Investors are increasingly demanding evidence that Europe's defence spending boom is translating into earnings and cash flow, rather than simply larger order books.

($1 = 0.8659 euros)

(Reporting by Maria Rugamer and Tristan Veyet in Gdansk; Editing by Matt Scuffham)