Renault (RNO) Q2 2025 TU earnings summary

Executive summary

• H1 2025 revenue reached €27.6 billion, up 2.5% year-over-year, slightly above consensus expectations.

• Operating margin for H1 was 6%, below the 6.9% consensus.

• Free cash flow was €47 million, impacted by a €900 million negative working capital swing.

• June performance was weaker than expected due to lower volumes, increased commercial pressure, and LCV underperformance in Europe.

• CEO transition is ongoing, with an interim CEO in place and a structured recruitment process underway.

Financial highlights

• H1 2025 revenue: €27.6 billion (+2.5% YoY), slightly above consensus (€27.5 billion).

• Operating margin: 6% of revenue (vs. 6.9% consensus).

• Free cash flow: €47 million, well below consensus (€645 million), due to negative working capital.

• Negative working capital change of €900 million (excluding tax effect) in H1.

• Inventory at June 30: 530,000 units, down from 560,000 at end of March.

Outlook and guidance

• Full-year 2025 operating margin now targeted at around 6.5%, down from above 7% previously.

• Free cash flow guidance for 2025 revised to €1–1.5 billion, from above €2 billion previously.

• Cost reduction plan is being strengthened, focusing on SG&A, manufacturing, and R&D savings.

• No expected improvement in the retail market for H2; recovery to be driven by LCV and new launches.

• H2 expected to benefit from higher volumes, cost controls, and new product launches.