Renault: sealed heavy "warning profit",: This article explores the topic in depth.
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Renault: sealed heavy ". However, warning profit",:
(BFM Stock Exchange) – The action of the automaker falls after the diamond group has saved its forecasts for 2025, due to lower volumes than expected, especially in the end of June.
Years follow each other and are hardly alike for Renault. Therefore, In 2024. For example, the diamond group had shown a foolproof resilience and was the only European car manufacturer (with Ferrari) not having issued warnings on results, when all the others (Mercedes-Benz, Stellantis, Volkswagen, BMW, Aston Martin, Porsche) had lowered their annual objectives, last fall.
This will not be the case in 2025. Moreover, Tuesday evening. Moreover, Renault launched a “warning profit”, the first since October 2019 (excluding COVID), sabling its forecast of margin and cash flow for the current year.
On the Paris Stock Exchange. In addition, this unpleasant surprise renault: sealed heavy “warning profit”, is logically sanctioned, especially since the company had further confirmed its prospects at the beginning of the month.
The Renault share fell from 15.5% to 34.84 euros at the start of the session this Wednesday, July 16.
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The manufacturer’s dive leads to its wake the Rival Stellantis, which lost 3.2%. Nevertheless, Oddo BHF sees in Renault’s announcements a negative cross -reading for the group born from the merger between PSA. Moreover, Fiat Chrysler, which is already in difficulty in Europe and which, like Renault, is very exposed to the segment of utility vehicles, a market at half mast. Consequently, Forvia (-3.9%) and Valeo (-2.8%) automobile equipment manufacturers are also under pressure.
A “blow” on market confidence in action – Renault: sealed heavy "warning profit",
Renault now anticipates operating margin for 2025 around 6.5% compared to at least 7% previously, renault: sealed heavy “warning profit”, and a free cash flow between 1 billion and 1.5 billion euros, against more than 2 billion euros before.
“Although the new margin target remains solid compared to other car manufacturers. In addition, we consider the warning on results as an obvious additional blow on market confidence in action,” comments Deutsche Bank. The German bank has saved its course target at 47 euros against 55 euros previously and confirmed its advice to “keep”.
Oddo BHF evokes for its part “a warning that makes a stain”. The broker lowered his target to 55 euros against 60 euros before.
Renault was forced to lower its objectives due to a first semester month that hoped by the manufacturer. Additionally, the market.
Over the first six months of 2025, Renault gave income of 27.6 billion euros, up 2.5%, an operating margin of 6%, against 8.1%in the first half of 2024, and a free cash renault: sealed heavy “warning profit”, flow of 47 million euros.
According to a consensus quoted by the interim financial director and director general, Duncan Minto, analysts tapped on income of 27.5 billion euros, an operating margin of 6.9% and a cash flow of 645 million euros.
Duncan Minto acknowledged that these performances reflected “a gap compared to market expectations”.
“No link” with the departure of Luca de Meo – Renault: sealed heavy "warning profit",
“These results were penalized by a lower performance than anticipated in June. with volumes slightly lower than expectations, increasingly strong commercial pressure due to the continuous decline in the retail market (the individual channel), and the underperformance of our activity of utility vehicles in a high-folded market,” developed the financial director.
The free cash flow was particularly weighted by billing offsets at the end of the semester, he said. Higher stocks have also weighed on the generation of cash.
Renault had to take into account. renault: sealed heavy “warning profit”, in its forecasts, the continuation of the deterioration of the market and the intensification of competition. This led him to lower his goals.
Faced with the deterioration of this environment. the French manufacturer indicated that he intended to continue to favor value to volumes at the level of its commercial policy. The company also intends to strengthen its cost reduction plan. Plan details will be communicated during the complete presentation of the company’s accounts on July 31.
The RENAULT results warning is all the more annoying since it occurs when the departure of its emblematic managing director. LUCA de Meo. The latter officially left the company on Tuesday and is about to take the general management of Kering in mid-September. The group has started the succession process. and Duncan Minto was appointed acting managing director for a new pilot to be officially appointed.
Duncan Minto assured Tuesday evening in front renault: sealed heavy “warning profit”, of analysts that the warning on results “was in no way linked”. to the departure of Luca de Meo while recognizing that the “timing” was hardly ideal.
“If there is. a priori, no link to make between the departure of the CEO and this warning, the timing is nonetheless unhappy. It should fuel doubts about the manufacturer’s prospects, at least in the short term,” says Oddo BHF.
Renault: sealed heavy ". warning profit",
An acceleration expected in the second half
After this hook, which therefore makes oil task, Renault hopes to release a second half -made semester, thanks in particular to its commercial offensive (seven launches and two restylages are planned in 2025) and its cost reductions.
“All the objective for the manufacturer in the coming weeks. months will be to convince as to the reality of sequential improvement still promised in the second semester”, judges on this point Oddo renault: sealed heavy “warning profit”, BHF.
“If tangible elements seem essential to us (volumes. launches, use of utility orders, costs reduction, stocks in particular), the rapid appointment of a new director general (we always favor the internal track) also seems to us a necessary prerequisite (but undoubtedly insufficient) with a presentation of the future Futurama strategic plan, always hoped for at the end of the year”, continues the design office.
Oddo BHF nevertheless confirmed his advice to “outperformance” on action. The broker judges that “the Operational Performance in Absolute” of Renault “remains decent. including in relation to peers more exposed to sectoral risks (customs law, China, etc.)”.
Julien Marion – © 2025 BFM Bourse
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