- Renault’s operating margin for the first half of 2025 was 6%, down from 8.1% the previous year, and below the estimate of 6.23%.
- The operating margin value was EU1.65 billion, marking a 24% decrease from last year, and missing the expected EU1.81 billion.
- The automotive operating margin dropped 38% year over year to EU989 million, falling short of the projected EU1.06 billion.
- Sales Financing, however, saw an increase in operating margin, rising 13% to EU668 million, and exceeding the forecast of EU655.8 million.
- Free cash flow plummeted by 96% from the previous year to EU47 million, significantly missing the forecasted EU486.2 million.
- Renault’s revenue grew by 2.5% year over year to EU27.64 billion, just above the expected EU27.54 billion.
- Automotive revenue reached EU24.49 billion, surpassing the estimated EU24.37 billion.
- The company reported an operating loss of EU8.40 billion compared to a profit of EU1.90 billion last year; this was more than the expected loss of EU5.57 billion.
- Renault recorded a net loss of EU11.19 billion, starkly contrasting with a profit of EU1.29 billion the previous year, and exceeding the expected loss of EU10.92 billion.
- The company maintains its forecast of an operating margin of around 6.5% for the year, slightly below the estimate of 6.67%.
- Renault still anticipates free cash flow of EU1 billion to EU1.5 billion, which is less than the estimated EU1.63 billion.
- The company comments that combined effects of pricing, mix, and cost management are expected to positively impact the second half and the full-year operating margin.
Renault SA on Smartkarma
Renault SA is under the spotlight on Smartkarma as analysts like Baptista Research share their insights. In a report titled “Renault SA: Initiation of Coverage- Strategic Tie-Ups with Geely Can Unlock Untapped Market Riches!”, Baptista Research highlights Renault Group’s strong performance in 2024. The company revealed impressive financial results with an operating margin of 7.6%, a historic high of EUR 4.3 billion. Furthermore, Renault’s free cash flow of nearly EUR 3 billion has bolstered its net cash position to over EUR 7 billion, showcasing disciplined operations and strategic repositioning.
A look at Renault SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Renault SA, a company specializing in designing, manufacturing, marketing, and repairing cars and light commercial vehicles, appears to have a positive long-term outlook based on its Smartkarma Smart Scores. With top scores in both Value and Dividend, Renault SA seems to offer good value for investors and a strong dividend payout. While the Growth score is slightly lower, indicating moderate growth prospects, the company’s Resilience and Momentum scores are more modest, suggesting some challenges in those areas that may need attention. Overall, Renault SA‘s high Value and Dividend scores point to a promising future for the company in the automotive industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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