Renault (RNO) Q2 2025 earnings summary

Executive summary

• Group revenue rose 2.5% year-over-year to €27.6bn, with automotive revenue up 0.5% to €24.5bn, despite challenging market conditions and increased competition.

• Operating margin declined to 6.0% from 8.1% in H1 2024, mainly due to a non-cash €9.3bn loss from the change in accounting for the Nissan stake and increased commercial pressure.

• Net income was heavily impacted by Nissan-related items, resulting in a reported loss of €11.1bn; excluding Nissan, net income was €0.5bn.

• Free cash flow dropped to €47m, affected by higher inventories, negative working capital variation, and lower dividends from Mobilize Financial Services.

• Leadership changes included the CEO stepping down, with interim and permanent successors appointed in July 2025.

Financial highlights

• Group operating profit fell to €1.65bn (6.0% margin), down €522m year-over-year; automotive operating margin dropped to 4.0%.

• Net financial expenses improved to -€93m from -€385m, mainly due to reduced hyperinflation impact.

• Shareholders' equity decreased to €20.7bn at June 30, 2025, from €31.1bn at end-2024.

• Automotive net cash position at €5.9bn at June 30, 2025; liquidity reserves at €15.8bn.

• Mobilize Financial Services operating profit rose €75m to €668m; revenue up 21.6% to €3.1bn.

Outlook and guidance

• Full-year 2025 targets: operating margin around 6.5%, free cash flow between €1–1.5bn, revised down from previous guidance due to market deterioration.

• H2 expected to outperform H1, driven by higher volumes, new launches, and strict cost control.

• Reinforced cost discipline with a €400 COGS reduction per vehicle targeted in 2025, mainly via purchasing and logistics optimization.

• Focus remains on value creation, cost reduction, and maintaining high plant utilization rates (~90%).