Renault Sa Stock Earnings Reports

Renault Group reported strong 2025 results and laid out a cautious but credible 2026 and midterm outlook. Key 2025 highlights: Group revenue grew ~3% to EUR 57.9bn (4.5% at constant FX); operating profit was EUR 3.63bn (6.3% of revenue); automotive operating margin 4.2%; automotive free cash flow EUR 1.5bn; automotive net cash position EUR 7.4bn; group registrations rose to 2.3m units (third consecutive year of growth). Product momentum: successful launches (Renault 5, Symbioz, Bigster, Alpine A290/A390) drove EV and hybrid growth (Renault EV mix 20% in Europe; group EV mix 14% in Europe; strong hybrid mix). Cost actions delivered ~EUR 400 COGS reduction per vehicle. Mobilize Financial Services delivered a record operating profit (~EUR 1.468bn) and produced strong financing volumes; MFS dividend to Renault is expected at EUR 350m in 2026 (targeting ~EUR 500m p.a. later). One-offs and accounting changes (Nissan stake accounting, Horse deconsolidation) weighed on below‑the‑line items; excluding Nissan effects, group net income was EUR 715m. 2026 outlook: management guides to circa 5.5% operating margin and ~EUR 1bn free cash flow, with assumptions of stable markets and continued cost discipline; consolidation of RNAIPL (India) and ongoing product launches globally are embedded. Midterm ambition: a steady corridor of 5%–7% operating margin and >EUR 1.5bn average annual free cash flow, continued annual ~EUR 400 per vehicle cost reductions, R&D & supplier entry ticket targeted below 8% of revenue, progressive growth in dividends and disciplined capital allocation. Key risks called out: FX (Argentinian peso, Turkish lira), commercial pricing pressure in Europe, warranty/recall impacts, and regulatory costs (e.g., LCV CAFE exposure). Management reiterated a value-over-volume commercial strategy, emphasis on product offensive, tech & engineering reorganization (including leveraging Shanghai development capabilities to reduce new‑model entry cost), and partnerships (Geely in Brazil, Ford in Europe, Horse Powertrain synergies) as central to delivery.