Renk: Order Books Are Full, but the Stock Price Is Ignoring It
The defence sector is booming worldwide, yet there is currently little sign of this in Renk’s share price. Since its last peak at EUR 53.55 in early August, the stock has already lost nearly 20% of its value and is currently trading at around EUR 43.50. Many investors are therefore wondering why the market is punishing one of the most important suppliers of tank and naval transmissions so severely. After all, the geopolitical landscape remains dominated by massive rearmament, which should ensure steady price gains for the sector’s major players. Currently, however, the entire defence industry is in reverse gear—at least in terms of stock prices. Renk is being held collectively responsible.
Looking at the hard facts, the current share price slide seems almost paradoxical. The company, regarded worldwide as a leading manufacturer of specialized transmissions for frigates and military tracked vehicles, has a well-filled order backlog of EUR 7.4 billion. In the first half of 2026 alone, Renk secured new orders worth EUR 1.2 billion. Management’s full-year forecast is also in place: total revenue is expected to exceed the EUR 1.5 billion mark this year. Meanwhile, EBIT is targeted at EUR 255 to 285 million, showing the operating business is running at full speed.
From a technical analysis perspective, however, the stock is currently in a downward trend. As long as the strong support level at just under EUR 40 holds, a rebound still appears possible. If the stock turns around from here, price targets in the range of EUR 50 will quickly come back into focus. Some renowned analysts even see the fair value at over EUR 60 in the long term, as the company’s service and maintenance business also delivers reliable returns. However, if this key support level breaks, there is a risk of a sharp slide toward the EUR 30–35 range.
While Renk, as a military supplier, should at least be on solid footing from a fundamental perspective, that is no longer necessarily the case for some automakers.
BMW: Harsh Cost-Cutting Measures and Shrinking Margins
The entire German automotive industry is in crisis. One could now speculate on why and to what extent the companies themselves are to blame, or how much responsibility German policymakers bear, but that does not really get anyone anywhere. BMW recently shocked the markets with the announcement of job cuts across the entire company. Approximately 8,000 jobs are set to be eliminated through a large-scale severance program. This is expected to yield annual savings of EUR 1 billion on the balance sheet starting in the coming years (2028). This drastic step makes it clear how much cost pressure management in Munich now faces to remain competitive.
An unvarnished look at the latest operating metrics reveals the full extent of BMW’s current predicament. The traditionally high-profit EBIT margin has been slashed to a meagre 1 to 3%. While there are minor bright spots in the product portfolio, such as the encouraging 5.2% increase in all-electric vehicle deliveries (Q2), the bottom line is that consolidated net income is shrinking. The fierce and at times destructive price war on the global market, along with the retrofitting costs already incurred and those still to come, are weighing on the income statement. As a result, the stock has taken another hit and is trading at just over EUR 62.70—a steep decline from its 2024 high of EUR 115.20.
Now the crucial question arises: is the BMW stock, at this heavily discounted level, a classic bargain—or is it still too expensive? For patient, long-term investors, the generously planned dividend of EUR 4.40, corresponding to a yield of around 7%, should serve as a welcome consolation. But we must not forget: even the dividend is not guaranteed. It could be smaller, or even eliminated entirely, if turbulence continues. Currently, negative sentiment prevails in the market, as BMW’s share price continues to trade listlessly, without momentum, below the 200-day SMA. A cautious entry would likely be advisable only once the overseas operating environment shows noticeable improvement and cost-cutting measures yield their first measurable results.
Moving on from cars and transmissions, we take to the skies, where a small-cap stock could gain altitude in the future.
Volatus Aerospace: Drone Hidden Gem
We now take a closer look at Volatus Aerospace. Many investors are not yet familiar with the company, which is not necessarily a bad thing. It may therefore still be something of a hidden gem. Volatus is a highly exciting Canadian company well positioned in both the civilian and military drone markets.
Just recently, on September 3, 2026, there was important news. Volatus was officially selected as a qualified supplier for the lucrative Canadian Defence Drone Initiative (DDI) Marketplace. This is not just a nice PR win—it is a ticket to government contracts in the defence and security sectors. This qualification positions the company to help shape the next generation of unmanned autonomous systems for the Canadian Armed Forces.
The company’s fundamental growth underscores this momentum. Volatus is no longer merely a speculative stock. While revenue and profits are still relatively modest, Volatus is growing—and in some areas, very rapidly. Revenue climbed 26% year-over-year, and high-margin sales of specialized equipment surged by 106%. With its own production facility in Mirabel and autonomous cargo drones like the “Canary”, the company is capitalizing on several megatrends at once.
With a fairly large cash balance and a sales pipeline exceeding CAD 500 million, the company is well-funded for upcoming major contracts.** From a technical perspective, things are getting particularly interesting right now, as Volatus Aerospace’s stock could soon gain momentum if it manages to break out dynamically to the upside. Currently, the share price around CAD 0.50 is fairly well supported by a horizontal support zone ranging from CAD 0.44 to CAD 0.48. If the stock successfully breaks through the resistance levels at CAD 0.55 and CAD 0.56, the share price could move toward the upper limit at CAD 0.70. If operations go particularly well and new government contracts come in, rapid advances toward CAD 0.80, CAD 0.90, or even CAD 1.00 are also possible. All in all, an extremely exciting starting point for risk-tolerant investors.
While Renk impresses with well-filled order books worth billions, it must, from a technical perspective, initiate a counter-movement above the EUR 40 mark in the near term to break the downtrend. BMW is struggling with the costly transition to e-mobility and significantly shrinking margins, but stands out with a fairly high dividend yield. Volatus Aerospace is particularly interesting at present, as the new government deal should strengthen the company’s business fundamentals. At the same time, the share price at around CAD 0.50 offers an improved risk-reward profile for a technical breakout toward the historical CAD 1.00 mark.
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