Renk Group Ag U/Adr

Welcome to the RENC Group AG Q1 2026 pre-close call. Please note that the call will be recorded. During today's call, webcast participants will be in a listen-only mode while we conduct the question and answer session. If you wish to ask a question, we ask that you please use the raise hand function at the bottom of your Zoom screen, or if you have dialed in star nine, further instructions will follow at the time of the Q&A. I would now like to turn the call over to Christian Weiss, Investor Relations. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to our Q1 2026 results conference call. My name is Christian from the IR team. With me today are our CEO, Dr. Alexander Sage, and our CFO, Anja Mansipje. Alexander and Anja will take you through the presentation. Afterwards, we will open the floor to your questions. But now I will hand over to Alexander. Please go ahead.

Thank you very much. Ladies and gentlemen, also from my side, like always, a very warm welcome and many thanks for joining today's Q1 call. Today's presentation has, like always, three parts. I will start first with a quick review of Q1 2026, followed by Anja, who will guide you through our key financials in more detail. Before I will come back with our outlook and guidance for 2026, a quick review of our current R&D pipeline and the upcoming key order intakes and programs for 2026. But ladies and gentlemen, before we go into details, let me quickly summarize the key messages up front. First, Rank has delivered a solid start into 2026. Q1 confirms the strength of our business model, the strong momentum in our defense segment and operational execution of our entire team. Second, the strongest Q1 order intake in our history at 582 million euro, resulting in a book-to-bill ratio of 2.1. Third, the total order backlog at a new all-time high of 6.9 billion. And importantly, also our fixed order backlog grew further to 2.6 billion versus year-end 2025. Fourth, our defense business continues to be the clear driving force with plus 27% in order intake. Fifth and finally, we fully reconfirm our 2026 guidance. Revenues above 1.5 billion and adjusted EBIT between 255 and 285 million. And again, let me be crystal clear again here. We are clearly targeting the upper half of our adjusted EBIT range. Or to sum it up, rank is on track. Let me now walk you through the details during the next slides. Therefore, ladies and gentlemen, let's move to slide one, which summarizes the four key takeaways I just walked you through. Record order intake in Q1, all-time high backlog, VMS as the clear growth engine, and more than 90% of planned 2026 revenues already covered by our fixed order backlog. So let me focus directly on the key order intakes for Q1 2026. Most of these programs, I'm sure, should be very familiar to you. First, an international NPT program with our transmissions at approximately €157 million. This program is quite relevant for RENK by providing access to a growing market in the NATO environment. Also, the second Puma batch with transmissions and suspensions at approximately €140 million, a quite important step for the modernization of the German army. Also, the US M88 recovery tank program with engines at approximately 49 million. And finally, two orders from international howitzer programs at approximately 25 million. If we move to slide two. Slide two summarizes the group performance for Q1 2026. And as you can see in the four orange boxes at the top, all KPIs show a very positive development. The order intake we already covered, so let's move directly to the revenue. The revenue came in at 284 million, plus 4% year on year. Important to note, when comparing Q1 2026 revenue with previous year's first quarter, Q1 2025 did include Israel-related revenues in the range between 20 to 25 million of euros. for Q1 2026 and as already communicated during our full year 2025 call, we did not have such Israel volumes in our production planning and consequently no Israel related revenue contribution. The adjusted EBIT stands at 42 million plus 10% year on year and once again, clearly outpacing revenue growth and reflecting the operating leverage in our business model. The adjusted EBIT margin improved by 0.9 percentage points to 15.0%. Regarding the end markets, we are now at a defense share of 74% on LTM basis, fully consistent with our sector strategy. The new build versus aftermarket split is at 64% to 36% and within our typical current range, depending, like always, on the specific product may Let's move to slide three. As you all know, defense is the core of our business and the main driving force behind our crew performance. While the defense-related order intake increased strongly by plus 27% to $495 million versus $390 million in Q1 2025, the revenue side came in at $209 million, plus 3% year-on-year. Important to emphasize, if we would, and this is just for reference, include in this revenue figure the missing Israel volumes from Q1 2025, as described before, the defense-related revenue would have been above €230 million, with a corresponding growth of approximately 14% year-on-year. One final word to Israel at this point. Since November 2025, the German export embargo has been lifted and we are now ramping up the production and shipments for Israel during Q2. We continue to expect 80 to 100 million euro revenue contribution for the full year. Ladies and gentlemen, let's move on to a quick view on our divisional performance and starting with our largest and most important division, Vehicle Mobility Solution. VMS is, once again, our clear growth engine. Revenue grew strongly by plus 11% to 191 million, fully in line with our customer contracts and delivery schedules. Our modular production concept in Augsburg, ramped up during Q3 2025, is fully running and supporting ongoing margin improvements. The order intake was outstanding, a record Q1 of 478 million plus 21% year-on-year with a book-to-bill of 2.5, driven by the main programs mentioned earlier. Or to sum it up, BMS is performing both commercially and operationally. Let me now turn to slide five in our Marine and Industry Division. M&I had a software Q1 2026 with revenues at 65 million or minus 11% year-on-year, driven by two specific effects as already mentioned during our pre-close call. First, customer-induced delays in outbound logistics on certain naval projects, approximately 10 million of euro impact on the revenue side, and second, supplier-related schedule issues. These effects are temporary and will be fully recovered during Q2 and Q3. The underlying performance and the order pipeline of our naval business remains fully intact. On top of this, our industrial business is still under pressure due to the GDP-related overall weak market environment. The order intake of 70 million confirms a solid level of activity, and we expect several larger naval order intakes during this year, which I will touch later on in the third part of the presentation. Last but not least, a few words on slide bearings. Slide bearings showed with 30 million euro of revenues a flattish performance in Q1 2026. Reflecting the ongoing headwinds from the weak industrial market mentioned before, a quarterly driven lower aftermarket and a negative impact by U.S. tariffs, which we did not have in Q1 2025. The order intake at 35 million euro is slightly above the revenue level. Ladies and gentlemen, now let's move on to the last slide, at least of my introduction, our total order backlog for 2021. we have reached a new record level of 6.9 billion, up from 6.7 billion at year-end 2025, which corresponds to approximately five times our LTM revenue. Very important to highlight, our fixed order backlog has continued to grow from 2.3 billion at year-end 2025 to 2.6 billion, driven by the strong Q1 order intake and despite our high revenue conversion. The soft order backlog stands at 3.5 billion, slightly below year-end 2025, driven by the conversion of soft into fixed during the quarter. On top, we have 0.9 billion of frame backlog plus our significant recurring aftermarket business outside our framework contracts. Having said this, I would like now to hand over to Anja for a deeper look into our Q1 financials. Anja, over to you.