Renault (RNO) Q4 2024 earnings summary

Executive summary

• Achieved record operating margin of 7.6% (€4.3B), free cash flow of €2.9B, and automotive net cash position of €7.1B in 2024, surpassing guidance and reflecting strong financial discipline.

• Group revenue grew 7.4% to €56.2B (+9% at constant exchange rates), with all automotive brands contributing.

• Net income group share at €752M, impacted by €1.5B capital loss and €694M impairment on Nissan; adjusted net income up 21% to €2.8B.

• Launched 10 new vehicles in 2024, focusing on affordable EVs, hybrid leadership, and strong brand repositioning.

• Proposed dividend of €2.20/share, up 19% year-over-year, with a payout ratio of 21.5%.

Financial highlights

• Group revenue rose 7.4% to €56.2B; automotive revenue up 4.9% to €50.5B; Mobilize Financial Services revenue up 35% to €5.6B.

• Operating profit reached €4.3B (7.6% margin); automotive segment margin at €3B (5.9%).

• Adjusted net income (excluding Nissan impacts) was €2.8B (+21% year-over-year).

• Free cash flow of €2.9B in 2024; automotive net cash position at €7.1B (+€3.37B vs. Dec 2023).

• Dividend payout ratio: 21.5% of adjusted net income.

Outlook and guidance

• 2025 targets: operating margin ≥7% (including ~1pt CAFE impact), free cash flow ≥€2B, and MFS dividend expected at €150M.

• Committed to further cost reductions, productivity gains, and robust product launch pipeline (seven launches in 2025).

• Focused on maximizing EV/HEV penetration and managing ICE volumes to meet regulatory requirements.

• Cost reduction roadmap aims for -40% EV costs between first and second generation C-segment EVs by 2028.

• Market uncertainties remain, especially regarding CO2 regulation (CAFE) in Europe.