Renault Reports Operating Margin of 6.3% in 2025 Despite Nissan Impact
Renault Group has released its annual 2025 results, showing revenue growth to 57.9 billion euros and a robust operating margin. The group also raised its outlook for 2026 and confirmed its dividend policy.
The automotive group recorded a revenue of 57.9 billion euros in 2025, up by 3.0% in reported figures and 4.5% at constant exchange rates compared to 2024. This increase was driven by the expansion of its three complementary automotive brands, boosted by the deployment of the International Game Plan and the ramp-up of electrification. Operationally, the group maintained a solid margin of 3.6 billion euros, representing 6.3% of the revenue. The net result attributable to the group was minus 10.9 billion euros, significantly impacted by accounting effects related to the stake in Nissan: a non-cash loss of 9.3 billion euros resulting from accounting treatment and a negative contribution of 2.3 billion euros from associated companies.
Strengthened Financial Position
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The financial position strengthened with a record net financial position of the automotive sector reaching 7.4 billion euros as of December 31, 2025. The automotive free cash flow amounted to 1.5 billion euros, driven by operational performance although partially offset by a negative change in working capital requirements. This flow includes 300 million euros in dividends received from Mobilize Financial Services. Total inventories stood at 539,000 units. The group proposes a dividend of 2.20 euros per share, subject to the approval of the general meeting of shareholders on April 30, 2026.
Outlook for 2026 and Medium-Term Goals
For 2026, Renault anticipates an operating margin of about 5.5% of revenue in a described complex environment, and an automotive free cash flow of about 1.0 billion euros, incorporating 350 million euros in dividends from Mobilize. In the medium term, the group aims for an operating margin between 5% and 7% of revenue, with the lower range substantially higher than historical margins. The automotive free cash flow is expected to reach at least 1.5 billion euros per year on average, including about 500 million euros annually from dividends of Mobilize. In December 2025, the rating agency S&P Global Ratings upgraded the long-term credit rating of Renault SA to investment grade BBB-, stable outlook, from BB+ previously.
"Nos résultats 2025, dans un contexte de marché difficile, démontrent l’engagement de nos équipes pour délivrer une performance régulière de premier plan parmi les acteurs de l’industrie automobile."
Résultats 2025: chiffre d’affaires Groupe de 57 922 millions d’euros (+3,0 % YoY; +4,5 % à taux de change constants); chiffre d’affaires Automobile de 51 442 millions d’euros (+1,8 %); marge opérationnelle Groupe de 6,3 %; résultat net part du Groupe de -10 931 millions d’euros; résultat net du Groupe hors Nissan de 715 millions d’euros; free cash-flow Automobile de 1 473 millions d’euros; position financière nette Automobile de 7 370 millions d’euros; dividende proposé de 2,20 euros par action; perspectives 2026: marge opérationnelle du Groupe entre 5 % et 7 %, free cash-flow de l’Automobile d’environ 1,0 milliard d’euros et dividendes Mobilize Financial Services d’environ 350 millions d’euros; perspectives à moyen terme axées sur une croissance soutenue et la réduction des coûts.
Outlook / guidance
Management commentary: Renault Group vise une marge opérationnelle du Groupe entre 5 % et 7 % du chiffre d’affaires sur le moyen terme et un free cash-flow de l’Automobile d’environ 1,0 milliard d’euros par an en moyenne sur le moyen terme, incluant environ 350 millions d’euros de dividendes reçus de Mobilize Financial Services à partir de 2026.
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