Boulogne-Billancourt, France – July 15, 2025 – Renault Group has released its preliminary financial figures for the first half of 2025, reflecting solid revenue growth tempered by mounting headwinds in the automotive sector. While the Group continues to pursue a value-driven strategy and remains anchored by strong operational fundamentals, it has revised its full-year financial guidance and announced an intensification of its cost containment measures.
Solid Top-Line Growth Amid Market Volatility
For H1 2025, Renault Group reported revenue of €27.6 billion, marking a +2.5% year-on-year increase. Operating margin stood at 6.0% of Group revenue, and free cash-flow came in at €47 million, a figure significantly impacted by a negative working capital requirement of approximately -€900 million, excluding tax effects.
June’s performance, in particular, weighed on results. The Group cited lower-than-expected volumes, compounded by intensifying commercial pressure, a continued downturn in the retail market, and an underperformance in the light commercial vehicle (LCV) segment, especially in a challenging European market.
Further drag on cash flow stemmed from billing timing discrepancies in late June and higher inventory levels—the result of elevated production at the end of 2024 and softer-than-forecasted sales in June. As of end-June 2025, Group and independent dealer inventories totalled 530,000 vehicles, a decrease from 560,000 in March but still above optimal levels.
Revised FY 2025 Outlook
In light of these dynamics and the expectation of continued retail market contraction alongside heightened competitive pressures, Renault Group has updated its full-year 2025 targets:
- Operating margin is now expected to be around 6.5%, revised from a prior objective of ≥7%.
- Free cash-flow is anticipated to range between €1.0 and €1.5 billion, down from the earlier target of ≥€2 billion.
Despite this recalibration, the Group remains committed to its core strategy of prioritizing value over volume, ensuring the protection of its upcoming vehicle launches and long-term brand equity.
Strengthened Cost Reduction Plan
In response to shifting market conditions, Renault Group is reinforcing its cost optimization programme, targeting both short-term savings and structural efficiencies. The enhanced plan focuses on:
- SG&A (Selling, General and Administrative) cost reductions
- Streamlined manufacturing processes
- More efficient R&D expenditure
Comprehensive details of these initiatives will be outlined during the Group’s half-year results presentation on July 31, 2025.
Strategic Strengths Bolstering Resilience
Despite the evolving market environment, Renault Group remains well-positioned to navigate uncertainty thanks to a robust strategic foundation:
- Agile business model capable of responding to demand across combustion, hybrid, and electric vehicles
- Attractive vehicle line-up, with 7 new launches and 2 facelifts scheduled for 2025, following 10 launches and 2 facelifts in 2024
- Strong retail channel performance, outperforming the European market by +15 percentage points
- Best-in-class residual values, ranging 4 to 13 points above European peers
- Healthy order book in Europe, equivalent to around two months of sales
- Disciplined inventory management despite current short-term fluctuations
- High plant utilization, averaging 90% across production sites
Looking Ahead
While current market conditions present undeniable challenges, Renault Group’s proactive response—including a sharpened cost discipline and a steadfast commitment to strategic flexibility—underscores its determination to deliver sustainable value creation. The full set of audited financial results for H1 2025 will be published on July 31, 2025.
