France's Renault swings to H1 profit on better-than-expected sales, cost cuts
France's Renault swings to H1 profit on better-than-expected sales, cost cuts
Overview
France automaker's H1 revenue rose 9.5% yr/yr, beating analyst expectations
Net income for H1 rebounded to €721 mln from a loss in prior year
Company confirmed 2026 outlook despite cost and FX pressures
Outlook
Renault confirms 2026 FY guidance for group operating margin around 5.5% of revenue
Company expects automotive free cash flow around €1.0 bln for 2026
Renault says price pressure in Europe expected to continue throughout the yr
Result Drivers
SALES TO PARTNERS - Strong performance of partner programs and integration of India joint venture boosted revenue
PRODUCT MIX - Higher EV sales and new model launches improved product mix and average selling price
COST REDUCTION - Purchasing efficiencies and lower warranty costs offset raw material inflation
Company press release: ID:nGNEZRztD
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Beat | EUR 30.25 bln | EUR 29.52 bln (3 Analysts) |
H1 Net Income |
| EUR 721 mln |
|
H1 Automotive Free Cash Flow |
| EUR 653 mln |
|
H1 Operating Income |
| EUR 1.13 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the auto & truck manufacturers peer group is "buy"
Wall Street's median 12-month price target for Renault SA is €36.50, about 30.8% above its July 29 closing price of €27.91
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago
Reuters Recommended Reads
July 29 - Renault swings to profit in first half despite intense Chinese competition
July 28 - Cost cuts help Mercedes stabilise profit but China woes loom
July 29 - Porsche's H1 profit rises 34% on cost, product mix management
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)