Renault: H1 2025 financial figures, FY 2025 financial outlook

Renault: H1 2025 financial figures, FY 2025 financial outlook

Renault Group has released its preliminary financial figures for H1 2025, showcasing a mixed performance amidst challenging market conditions. The group reported revenue of €27.6 billion, a 2.5% increase compared to the same period last year [1]. The operating margin stood at 6.0% of group revenue, while free cash flow amounted to €47 million, including a significant negative change in working capital requirements of around -€900 million (excluding tax effect).

Key factors impacting Renault's performance include lower-than-expected volumes in June, increased commercial pressure due to the declining retail market, and underperformance of the Light Commercial Vehicle (LCV) business in Europe. The group's working capital requirement was negatively affected by higher production levels at the end of 2024 compared to June 2025, as well as increased OEM inventories due to lower-than-expected volumes in June. Despite these challenges, Renault's total inventories (OEM level and independent dealers) stood at 530,000 vehicles at the end of June, down from 560,000 vehicles in March 2025 [1].

For FY 2025, Renault aims to achieve an operating margin of around 6.5% (previously ≥7%) and a free cash flow between €1.0 and €1.5 billion (previously ≥€2 billion). The group is prioritizing value creation over volume and strengthening its cost reduction plan, focusing on SG&A cost reduction, manufacturing, and R&D savings. Renault's strong fundamentals, including a flexible business model for combustion, hybrid, and electric vehicles, an attractive product line-up, and a focus on profitable retail sales, position it well to navigate the competitive market [1].

Renault Group will publish its H1 2025 results on July 31, 2025, with a press conference scheduled for today at 18:15 CEST [1].

References:
[1] https://finance.yahoo.com/news/h1-2025-financial-figures-fy-160000942.html