Preliminary Q2 2025 Renault SA Earnings Call Transcript
Key Points
- Renault SA (RNLSY) reported a group revenue of EUR27.6 billion, slightly above market consensus.
- The company maintains a strong order book in Europe, with two months of forward sales.
- Renault SA (RNLSY) has a high factory utilization rate, averaging around 90%.
- The company plans to launch seven new models and two facelifts in 2025, targeting both European and international markets.
- Renault SA (RNLSY) is implementing immediate short-term cost reduction measures and accelerating its cost reduction plan.
- Operating margin for the first half was 6%, below the market consensus of 6.9%.
- Free cash flow stood at EUR47 million, significantly below the consensus of EUR645 million.
- The company experienced a negative change in working capital requirement estimated at around minus EUR900 million.
- Renault SA (RNLSY) faced lower-than-anticipated performance in June due to declining retail market and underperformance in the LCV business.
- The company has downgraded its full-year 2025 operating margin target to around 6.5%, down from the previous expectation of higher than 7%.
Good evening, everyone, and thank you for joining us in such a short notice. This call will be hosted by Duncan Minto, Renault Group CFO and newly appointed CEO by interim. As you know, we are in a transition period for the CEO appointment. The Board is fully engaged in ensuring a swift structured recruitment process and the selection process for the new CEO is already well underway. After Duncan's short presentation, you will have the opportunity to ask all your questions.
Duncan, the floor is yours.
Okay. Thanks, Philippine, and good evening, everyone. Let's start with Renault Group H1 2025 preliminary financial figures. Following the review of our preliminary figures, it appears there is a gap with market expectations, and it's, therefore, our responsibility to update you on the main figures. So group revenue stood at EUR27.6 billion, up 2.5%, and this was versus a consensus at EUR27.5 billion.
Operating margin reached 6% of group revenues
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