Renault (RNO) Q2 2024 earnings summary

Executive summary

• Achieved record 8.1% operating margin in H1 2024, up 0.5 pts year-over-year, with group revenue of €27.0bn (+0.4%) and free cash flow of €1.3bn; net financial position reached €4.9bn.

• Net income was €1.4bn, including a €440m capital loss on Nissan share disposal and a €286m gain from HORSE deconsolidation.

• Strategic focus on electrification, digital transformation, and partnerships, with dedicated EV (Ampere) and ICE/hybrid (HORSE) entities supporting resilience.

• Over 20 strategic partnerships and new joint ventures, including Flexis SAS and The Remakers, drive innovation and capital efficiency.

• AI and digitalization initiatives delivered €425m–€400m in savings (2023–24), accelerating process speed and product development.

Financial highlights

• Group revenue stable at €27.0bn (+0.4% y/y, +3.7% at constant FX); automotive revenue €24.4bn, down 1.9% reported but up 1.2% at constant FX.

• Operating profit reached €2.2bn (8.1% margin), up €135m year-over-year.

• Net income €1.4bn, impacted by one-off items; free cash flow €1.3bn; liquidity reserve at €17.6bn.

• Mobilize Financial Services revenue up 29.2% to €2.6bn; operating profit €593m.

• Automotive net cash financial position hit a record €4.9bn, up €1.1bn from December 2023.

Outlook and guidance

• 2024 guidance reaffirmed: operating margin at least 7.5% and free cash flow above €2.5bn.

• H2 operating margin expected above H1, excluding HORSE impact; strong orderbook and healthy inventory levels.

• Continued focus on operational performance, value creation, and disciplined capital allocation.