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Renault Group Reveals First-Half Results Amid Challenging Market Conditions

Renault Group, the French automobile manufacturer, has announced its preliminary financial data for the first half of 2025, revealing a shift in its performance compared to previous expectations. The detailed results will be published on July 31, 2025, with a press conference scheduled for 18:15 CEST.

The Group's free cash flow for the first semester of 2025 is expected to be between 1.0 and 1.5 billion euros, a significant drop from the previously anticipated minimum of 2 billion euros. This decline is attributed to a lower-than-expected performance in June, with volumes slightly below expectations, increased commercial pressure, and underperformance of LCV activity in a sharply declining European market.

Despite these challenges, Renault Group maintains a high average utilization rate of factories, around 90%, and manages inventory strictly. The Group's total stocks (manufacturer and independent dealers) were 530,000 vehicles at the end of June, a decrease from 560,000 vehicles at the end of March 2025.

The operating margin for the first semester of 2025 is expected to be around 6.5%, down from previously expected minimum of 7%. Group turnover for the same period increased by 2.5% to 27.6 billion euros.

Renault Group's economic model, known for its flexibility and agility, continues to respond to market needs for thermal, hybrid, and electric vehicles. The company is implementing a short-term cost reduction plan, focusing on decreasing SG&A (general and administrative expenses) and production and R&D costs.

The company's new CEO, François Provost, who succeeded Luca de Meo, was appointed on July 31, 2025. Renault Group also boasts an attractive range of vehicles for European and international markets, with 7 launches and 2 restylings planned for 2025.

The Group prioritizes the most profitable sales channel for private customers in Europe and has a solid order book, representing approximately two months of sales. However, Renault Group now expects a deterioration of the automotive market dynamics for the 2025 fiscal year, with increased commercial pressure from competitors and the anticipation of continued decline in the retail market.

A press conference will be held today, and a streaming of the event will be available. It's worth noting that the preliminary figures published in this press release are unaudited, and the exact date for the publication of the first-half report for 2025 was not explicitly found.

Renault and Dacia brands' figures in this press release are also unaudited. The Group has a rigorous approach to residual values, superior to European peers by 4 to 13 points. A level of receivables was impacted by delays in invoicing in the last days of the month.

In conclusion, while Renault Group is facing challenging market conditions, the company is taking measures to adapt and maintain its competitive edge. The detailed results, to be published on July 31, will provide a clearer picture of the company's performance in the first half of 2025.