Renault accuses a spectacular drop in its profits, weighed down by a pressure market and massive accounting effects linked to Nissan. The new boss of the group, François Provost, is still combating for the rest of the year.
The European market at half mast
Renault collects a serious stop. In the first half of 2025, the group’s net profit collapsed by 69 % compared to last year, falling at 461 million euros. And again, this figure does not take into account the impacts linked to Nissan: by integrating them, The manufacturer displays a colossal net loss of 11.2 billion eurosdue to a change in accounting method.
François Provost, freshly appointed to the head of Renault Group, does not abandon the difficulties: ” Our results of the first semester, in a difficult market context, were not online with our initial ambitions ». The leader points to a particularly unfavorable situation in Europe: the withdrawal of the individual market, the sharp drop in utilities, the increased pressure on prices… Enough to weigh heavily on profitability.
Faced with this situation, the group claims to have already started a ” set of measures To reverse the trend. Objective: straighten the bar in the second halfbased on a rise in power of new models and better control of costs. “” Renault’s profitability remains a reference in our industry », Immends Provost, affirming his desire to maintain this standard despite the opposite winds.
A margin also decreased
Beyond the fall in profits, Renault still displays some encouraging indicators. Group’s turnover increased by 2.5 %, to 27.6 billion euros. On the automotive side, sales are timidly increasing (+0.5 %), but benefit from a good effect thanks to recent launches such as the R5, the Rafale or the new Duster.
The operating margin of the group is 6 %, a notable decrease compared to last year, but which remains honorable in a heckled context. The free cash flow falls to 47 million euros, due to a negative working capital need and less dividends of its movable subsidiary.
Renault now relies on a second more promising half. Management targets an annual margin around 6.5 % and up to 1.5 billion euros in cash flow available by the end of December. It remains to transform the test, in a market where nothing is acquired.
- Renault saw its net profit drop by 69 % in the first half, to 461 million euros, in a tense European market context.
- The group displays an accounting loss of more than 11 billion euros linked to the reassessment of its participation in Nissan.
- Despite this setback, Renault is focusing on its new models and better costs management to straighten the bar by the end of 2025.
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