RENK Group: Slide bearings out, David Brown in, ramp-up assumptions trimmed, upside Intact

We update our RENK model following the announced disposal of Slide Bearings to Miba AG and the consolidation of David Brown Defence (from 2 November 2026), with estimates now presented on a continuing-operations basis. Slide Bearings accounted for c.8-9% of group revenue at c.18% EBIT margins; we attribute c.EUR360m enterprise value to the business, broadly in line with management's low- to mid-three-digit million euro price indication, and assume c.EUR275m net proceeds, which could fund a special dividend, a buyback (existing authorisation for up to 10% of capital; EUR300m would buy c.8%) or defence M&A. For DBD we model margins in line with M&I from FY26E, with the June 2026 contract reset the single most important driver; purchase price assumed at c.EUR200m. Reflecting the portfolio changes and more cautious Vehicle Mobility Solutions backlog conversion, we cut FY27-28E adjusted EBIT by c.11%;