Renault Sa Stock Earnings Reports

Renault Group reported a strong 2025 performance with delivery against mid-year targets: group operating margin of 6.3% (~EUR 3.63bn), automotive free cash flow of ~EUR 1.5bn and an automotive net cash position of EUR 7.4bn. Group revenues rose 3% to EUR 57.9bn (4.5% at constant FX) and registrations grew to 2.3m units (third consecutive year of growth). Electrified vehicles gained share (Renault brand EV mix ~20% in Europe; group EV mix ~14% in Europe) and hybrid sales also rose strongly. Cost actions reduced COGS by ~EUR 400 per vehicle in 2025. Mobilize Financial Services delivered a record operating profit (EUR 1.468bn) and new financing of EUR 22.3bn. One-offs and accounting changes (notably the accounting treatment of the Nissan stake) weighed below operating profit, and provisions/other items (impairments, FCA-related provision at MFS, LCV CAFE provision) also reduced net income. Excluding Nissan impacts, net income group share was EUR 715m. Dividend proposal of EUR 2.20 per share will be submitted to the AGM. For 2026 the group is guiding to circa 5.5% operating margin and around EUR 1.0bn free cash flow, and it unveiled a midterm target of a steady 5%–7% operating margin with average annual free cash flow above EUR 1.5bn. Key strategic priorities: continued product offensive in Europe and key international markets (India, South America, South Korea, Turkey), value-over-volume commercial approach, expanded use of partnerships (e.g., Geely in Brazil, Ford in Europe), engineering streamlining (unified engineering, reduced entry ticket and development costs leveraging ACDC/China learnings), and disciplined capital allocation with progressive dividend increases.