Renault (RNO) Q4 2025 earnings summary

Executive summary

• Group revenue rose 3.0% year-over-year to €57.9 billion in 2025, with all brands growing and strong international and electrification momentum; 2,336,807 vehicles sold (+3.2%).

• Operating margin was €3.6 billion (6.3% of revenue), but net income Group share was -€10.9 billion due to a €9.3 billion non-cash loss from Nissan stake revaluation and -€2.3 billion from associated companies; adjusted net income (ex-Nissan) was €715 million.

• Automotive free cash flow reached €1.5 billion, with a record net cash position of €7.4 billion at year-end 2025.

• Significant organizational streamlining, new leadership, and strategic partnerships (notably with Geely in Brazil, Ford in Europe, and RNAIPL in India) supported operational momentum.

• S&P Global Ratings upgraded long-term credit rating to 'BBB-' (investment grade) with stable outlook; proposed dividend of €2.20 per share.

Financial highlights

• Group operating margin was 6.3% (down from 7.6% in 2024), with group operating profit at €3,632 million.

• Automotive revenue grew 1.8% to €51.4 billion; Mobilize Financial Services revenue up 13.2% to €6.4 billion, with record operating profit of €1.47 billion.

• Automotive free cash flow was €1.47 billion, supported by operational performance and a €300 million dividend from Mobilize Financial Services.

• Net income Group share dropped from €752 million to -€10,931 million, mainly due to Nissan-related impacts; excluding Nissan, net income was €715 million.

• Shareholders’ equity declined to €22,296 million from €31,102 million; liquidity reserves at €17.7 billion.

Outlook and guidance

• 2026 guidance: operating margin around 5.5% of revenue, automotive free cash flow around €1.0 billion, including €350 million dividend from Mobilize Financial Services.

• Medium-term targets: operating margin between 5% and 7%, automotive free cash flow ≥ €1.5 billion per year on average, with €500 million annual dividend from Mobilize Financial Services.

• Revenue expected to grow at a mid-single digit CAGR over the medium term, with focus on cost reduction, product innovation, and international expansion.

• Commitment to maintaining R&D CapEx and supplier entry ticket below 8% of group revenues, and progressive dividend increases.

• Continued cost reduction and product launches in Europe and internationally amid currency and regulatory headwinds.