Renault Faces Significant Losses and Leadership Change Amid Financial Turmoil
Renault reports €11.18 billion in losses and appoints new CEO amid financial restructuring.
Key Points
- • Renault incurred a net loss of €11.18 billion in H1 2025 due to Nissan investment write-off.
- • François Provost succeeds Luca de Meo as CEO of Renault.
- • Revenue increased by 2.5% to €27.6 billion, but operating margin fell to 6%.
- • Renault lowered its annual operating margin forecast to 6.5% and free cash flow expectations to €1.0-€1.5 billion.
Renault has reported a staggering net loss of €11.18 billion for the first half of 2025, primarily due to a substantial write-off of €9.3 billion related to its investment in Nissan. This loss has prompted a shift in the company's leadership, with François Provost appointed as the new CEO, succeeding Luca de Meo, who is transitioning to helm the luxury group Kering.
Despite the financial setbacks, Renault managed to post a net profit of €461 million when accounting for operational gains outside the Nissan impact. The company's revenue incremented by 2.5%, reaching €27.6 billion, although its operating margin saw a decline of 2.1 points to 6%. In light of deteriorating market conditions, particularly affecting the utility vehicle sector, Renault has revised its annual forecasts downward. The firm now anticipates an operating margin of about 6.5% for 2025, adjusted from its previous target of at least 7%. Additionally, Renault expects free cash flow to range between €1.0 billion and €1.5 billion, a departure from earlier estimations of at least €2 billion.
In announcing these changes, newly appointed CEO Provost expressed optimism regarding the company's future, asserting, "I am convinced that Renault Group is well positioned to create value sustainably in the coming years." He aims to navigate through the current challenges while focusing on long-term stability and growth.