Renault (RNO) Q3 2024 earnings summary

Executive summary

• Q3 2024 Group revenue rose 1.8% year-over-year to €10.7 billion, with growth in Sales Financing and Mobility Services offsetting a slight decline in Automotive revenue; at constant exchange rates, revenue increased 5%.

• Product mix improved by 3.8 points, driven by new model launches and a focus on higher-margin models and disciplined inventory management.

• Global unit sales fell 5.6% year-over-year, with declines across Renault, Dacia, and Alpine brands, but strong order intake and a robust order book support confidence in Q4 volume growth and full-year guidance.

• Nine-month 2024 Group revenue totaled €37.7 billion, up 0.8% year-over-year, or 3.7% at constant exchange rates.

Financial highlights

• Automotive revenue for Q3 was €9.3 billion, down 0.5% year-over-year, but up 2.6% at constant exchange rates; negative forex mainly from Argentina, Brazil, and Turkey.

• Sales Financing revenue grew 21.6% to €1.34 billion, with average performing assets up 8.5%.

• Mobility Services revenue increased 27.3% year-over-year in Q3.

• For the first nine months, Group revenue was €37.7 billion (+0.8% y/y), with Sales Financing up 26.5%.

Outlook and guidance

• Full-year 2024 guidance confirmed: operating margin above 7.5% and free cash flow above €2.5 billion.

• Q4 expected to benefit from ramp-up of new vehicle launches and a strong order book.

• 2025 expected to deliver mid- to low-single-digit growth in Europe and globally, slightly outperforming flat markets.