Renault's stock market plunges (-17%): why the group is suffering its biggest slump since Covid

Renault Group suffered a stock market crash following its results. The company recorded preliminary revenue of €27.6 billion for the first half of 2025, representing a 2.5% increase compared to the same period last year, according to data published Tuesday by the company, which has lowered its full-year forecasts for both operating margin and free cash flow.

This cut in forecasts was a complete disappointment for the market. Following this, the automotive company plummeted more than 17% on the French stock market to €34.08 per share. This represents Renault's biggest stock market crash since March 12, 2020, when its shares fell to €100. collapsed by 21.9%.

The group 's operating margin stood at 6.0% of revenue at the end of the half-year, while free cash flow reached €47 million, impacted by a negative change in working capital of approximately €900 million.

The company attributes this result to a lower-than-expected performance in June , with sales volumes below expectations and increased sales pressure in a declining retail market, especially in the light commercial vehicle segment in Europe.

Renault Group explains that the increase in inventory to 530,000 vehicles at the end of June is due to the slowdown in sales in the last month of the semester, although it emphasizes that this figure is lower than the figure recorded at the end of March (560,000 vehicles).

Given the deteriorating dynamics of the automotive market and intensifying competition, the group has revised its forecasts for the whole of 2025 downwards: it now expects an operating margin of around 6.5% (compared to around 7% previously) and free cash flow of between €1 billion and €1.5 billion (previously around €2 billion).

To address this situation, Renault Group has strengthened its cost-cutting plan , focusing on reducing overhead, production, and R&D costs, and maintains its commitment to value creation over sales volume.

The company emphasizes the solidity of its fundamentals, with a "competitive" vehicle range, a European order book equivalent to two months of sales, and a high level of factory utilization, close to 90%. Final first-half results will be published on July 31.

The group's board of directors decided last Tuesday to appoint current CFO Duncan Minto as interim CEO until a new CEO is appointed following Luca de Meo's resignation last month.

Born in 1975, Duncan Minto holds a degree from the University of St Andrews in Scotland. He joined Renault Group UK in 1997 and has a strong background in finance and a deep understanding of industry challenges.

Renault Group suffered a stock market crash following its results. The company recorded preliminary revenue of €27.6 billion for the first half of 2025, representing a 2.5% increase compared to the same period last year, according to data published Tuesday by the company, which has lowered its full-year forecasts for both operating margin and free cash flow.