Renault Slashes 2025 Guidance, Appoints New CEO Amid Shares Plunge

Renault shares dropped 16% after cutting its 2025 guidance and appointing CFO Minto as interim CEO. ASML reported strong Q2 results, beating top-line and bottom-line estimates. MP Materials surged to an all-time high after announcing a $500 million deal with Apple to develop a recycling line for rare earth materials. Rio Tinto reported a rebound in Q2 iron ore shipments, while Ford Motor announced a $570 million charge related to a fuel injector fix for certain models. Albertsons Companies raised its identical sales growth outlook for FY25, and J.B. Hunt Transport Services outlined a $100 million cost reduction initiative. Brighthouse Financial shares rose over 8% premarket following reports of exclusive buyout talks with Aquarian. General Motors announced plans to shift production of the Cadillac Escalade from Arlington, Texas, to Michigan.

Renault shares dropped as much as 17% on Wednesday after the French automaker lowered its 2025 financial guidance and appointed CFO Duncan Minto as interim CEO. The Paris-listed stock fell to a fresh 52-week low, marking its worst trading day since March 2020 [1].

In a trading update published late Tuesday, Renault stated it is targeting an operating margin of around 6.5% for 2025, down from a previous forecast of around or exceeding 7%. The company also revised its free cash-flow projection to between €1 billion and €1.5 billion ($1.16 billion-$1.74 billion), down from roughly or above €2 billion, previously [1].

The appointment of Duncan Minto as interim CEO follows Luca de Meo's abrupt resignation last month after around five years at the helm. Minto, who joined Renault in 1997 and assumed the role of Group CFO in March 2025, will manage the company alongside Jean-Dominique Senard, who will hold the position of Chairman of Renault s.a.s. [1].

Analysts at Germany's Deutsche Bank cut their target price to €47, down from €55, on news of Renault's profit warning. They noted that while the new margin guide remains solid relative to peers, the warning is an additional hit on sentiment for shares [1].

Renault is poised to report its half-year results on July 31. The automaker has faced pressure from muted European demand and rising competition from Chinese car manufacturers, despite previously being relatively insulated from trade disruption caused by U.S. President Donald Trump's tariffs [1].

ASML Reports Strong Q2 Results

In contrast, ASML Holding N.V. reported strong second-quarter results, beating top-line and bottom-line estimates. The Dutch semiconductor equipment maker reported total net sales of €7.7 billion, a gross margin of 53.7%, and a net income of €2.3 billion [2]. ASML's net bookings for the period were €5.5 billion, with €2.3 billion from extreme ultraviolet (EUV) technology [2].

For the third quarter, ASML expects net sales to be between €7.4 billion and €7.9 billion, with a gross margin between 50% and 52%. Looking ahead, ASML expects a 15% increase in full-year 2025 net sales, revising its previous guidance down from a range of €30 billion to €35 billion [2].

Market Reaction

Renault's U.S. shares have declined 5.4% so far in 2025. The appointment of Minto as interim CEO and the lowered financial guidance have sparked concerns among investors [1]. Meanwhile, ASML's strong Q2 results have been well-received, with the company's shares trading at 653.20 euros, down 7.5% in Amsterdam [2].

References

[1] https://www.cnbc.com/2025/07/16/renault-shares-fall-after-french-carmaker-lowers-2025-guidance.html
[2] https://siliconcanals.com/asml-hits-top-end-of-q2/