Renault Shares Plummet Amid Guidance Cut, ASML Sets New High on Q2 Earnings

Renault shares plunged 16% after lowering its 2025 guidance and appointing CFO Minto as interim CEO. ASML reported Q2 results exceeding expectations, with a GAAP EPS of €5.90 and revenue of €7.69 billion, marking a 24% YoY increase. The company updated its FY25 outlook, projecting a 15% rise in total net sales compared to 2024 and a gross margin of around 52%.

Renault shares plunged 16% on July 16, following the French automaker's decision to slash its profitability outlook and appoint CFO Duncan Minto as interim CEO. The stock fell as much as 16% in Paris, marking the biggest drop since the start of the Covid-19 pandemic. Renault cut its operating margin guidance for 2025 to around 6.5%, down from at least 7% previously, and lowered its expectation for free cash flow to between €1 billion (RM4.94 billion) and €1.5 billion, from an earlier projection of at least €2 billion [1].

Minto, currently finance chief, is taking over from Luca de Meo, who is leaving for Gucci owner Kering SA. The search for a long-term leader is well underway, with candidates including Dacia boss Denis Le Vot, Renault’s procurement chief Francois Provost, and former Stellantis NV executive Maxime Picat [1].

The revised guidance underscores the challenges Renault’s next management team is facing, including muted demand in Europe, mounting trade tensions, and the growing competitiveness of Chinese manufacturers led by BYD Co. [1]. Minto and his successor will try to continue the fragile turnaround started under de Meo, who refreshed Renault’s lineup and bolstered profitability [1].

Meanwhile, ASML Holding (ASML) reported Q2 results that exceeded expectations, with a GAAP EPS of €5.90 and revenue of €7.69 billion, marking a 24% year-over-year increase [2]. The company updated its FY25 outlook, projecting a 15% rise in total net sales compared to 2024 and a gross margin of around 52% [2].

References:
[1] https://theedgemalaysia.com/node/762840
[2] https://www.gurufocus.com/news/2982786/market-today-renault-shares-plunge-asml-beats-estimates