Renk Profit Slumps as Frigate Cancellation Costs Mount

A 22.9 million-euro impairment loss triggered by the sudden cancellation of the F126 frigate project has cut Renk Group’s net profit by more than half. Despite the setback, the German gearbox manufacturer reports that its order intake surged by 34 percent, signaling robust demand for its military propulsion systems.

November 5, 2026, 10:12 AM 501 0

Renk Profit Slumps as Frigate Cancellation Costs Mount

Revenue for the first nine months reached 982.0 million euros, a steady climb from the 927.7 million euros recorded during the same period last year. While the scrapped frigate contract dampened the bottom line—dropping net profit to 25.0 million euros—the company’s underlying performance remains strong. Adjusted earnings before interest and taxes rose 13 percent to 158.8 million euros, reflecting stability in core operations.

Looking toward the future, the firm’s total order backlog has hit a record 7.6 billion euros, providing a clear trajectory for increased production capacity. Following the recent divestment of its slide bearings division, Renk has recalibrated its 2026 outlook, projecting revenue near 1.4 billion euros with adjusted EBIT expected to land between 240.0 million and 255.0 million euros.

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