Renault (RNO) Q1 2025 earnings summary

Executive summary

• Q1 2025 Group revenue was €11.7 billion, down 0.3% year-over-year but up 0.6% at constant exchange rates.

• Global sales increased 2.9% to 565,000 units, with strong growth in Europe and international markets.

• Automotive revenue was €10.1 billion, down 3% year-over-year, impacted by FX, negative volume, and dealer destocking.

• Mobilize Financial Services revenue rose 22.3% to €1.52 billion, driven by higher average ticket per vehicle, favorable interest rates, and asset growth.

• Electrified vehicle sales mix in Europe reached 44.2%, with Renault brand hybrid and EV sales up 46.1% and 87.9% respectively.

Financial highlights

• Automotive revenue declined 2.2% at constant FX, with a negative FX impact mainly from Latin America and Turkey.

• Mobility Services revenue increased 53.3% to €23 million.

• Product mix effect was positive at 3.7%, supported by new model launches.

• Price effect was stable but positive at 0.5%, reflecting price stabilization.

• Inventory at end of March was 560,000 units, up 20,000 units from December, in line with seasonal patterns.

Outlook and guidance

• 2025 guidance confirmed: Group operating margin ≥7% (including ~1 pt CAFE impact), free cash flow >€2bn (including ~€200m RNAIPL R&D Capex impact).

• Cost management and additional internal cost reduction measures are priorities amid macroeconomic uncertainty.

• Seven new launches and two facelifts planned for 2025, including Bigster, Renault 4, and Alpine A390.

• H2 2025 expected to be stronger than H1 due to product ramp-up and cost reduction benefits.