Renault Crashes on the Stock Market
This page is translated from the original post "Renault s’écroule en Bourse" in French.
- 17/07/2025 11:24
In a sensitive context of leadership change, Renault’s stock plummets after a profit warning.
A tough blow for Renault. The French automaker saw its shares drop nearly 20% on the Paris stock exchange, falling to a low of 32.95 euros. The cause: a “profit warning” announced the day before. Renault has indeed revised its financial targets for the year downward, triggering shockwaves in the markets.
The diamond group, which was solid in 2024, surprised analysts by announcing an expected operating margin of around 6.5%, down from at least 7% previously. Its cash flow will also be weaker than expected, between 1 and 1.5 billion euros, far from the 2 billion hoped for. Renault explains this decline by a worse-than-anticipated end to the semester, particularly in June, with sales volumes falling short of expectations, intense commercial pressure, and a sharp decline in the commercial vehicle market.
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This bad news comes just as CEO Luca de Meo leaves the company to join Kering Group. To ensure the transition, Duncan Minto, the current CFO, has been appointed interim CEO. He stated that this warning had “no connection” with Luca de Meo’s departure, even though he acknowledges with commendable clarity that the timing is poorly chosen!
The market’s reaction was immediate. In addition to Renault, other companies in the sector, such as Stellantis, Valeo, and Forvia, were dragged down by its fall. Analysts believe this warning undermines investor confidence, even if the results remain acceptable compared to other manufacturers.
However, Renault hopes for a better second half, with several new model launches and a cost-cutting plan that will be detailed on July 31. The group aims to prioritize profitability over volume in a market that has become more challenging. The prompt appointment of a new CEO is also awaited, as the CGT calls for a strategy more in line with economic reality.
After a solid 2024, Renault is thus entering a period of uncertainty.
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