RENK Group: A Pure Play On Europe's Defense Boom

Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryRENK Group remains a 'Buy', with 18–29% upside potential based on 2026 earnings and operating leverage from defense-driven growth.2025 saw revenues rise 20% to €1.37B, with defense sales now 74% of the total and adjusted EBIT margin expanding to 16.9%.Guidance for 2026 targets over €1.5B in sales (10%+ growth) and adjusted EBIT of €255–285M, supporting margin expansion to 17–19%.Free cash flow and EBITDA are expected to accelerate, net debt to decrease, and dividends to grow, though yield remains modest.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »mammuth/iStock via Getty Images RENK Group (RNKGF) stock has been mostly flat since my last report, contrasting with my buy rating and view that RENK Group could be among the beneficiaries of Europe's push for security autonomyThis article was written byDhierin Bechai23.53K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.