H1 2025 financial figures and FY 2025 financial outlook

Financial Performance - Renault Group reported H1 2025 revenue of €27.6 billion, reflecting a 2.5% increase compared to previous periods [3] - The operating margin for the group was 6.0% of revenue, with a revised outlook indicating it may be around 6.5% instead of the previously anticipated ≥7% [3] - Free cash flow was reported at €47 million, with a significant negative change in working capital estimated at approximately -€900 million [3] Market Challenges - The company faced lower-than-expected performance in June, attributed to increasing commercial pressure and a decline in the retail market [3][4] - The light commercial vehicle (LCV) business underperformed in a sharply declining European market [3] - Total inventories at the end of June stood at 530,000 vehicles, down from 560,000 in March 2025, indicating a healthy management of inventories [3] Strategic Initiatives - Renault Group is focusing on a strict commercial policy that prioritizes value creation over volume to protect its product launches [3] - The company is strengthening its short-term cost reduction plan, emphasizing SG&A cost reduction, manufacturing, and R&D savings [3] - The group plans to launch 7 new models and 2 facelifts in 2025, building on the 10 launches and 2 facelifts from 2024 [4] Business Model and Market Position - Renault Group maintains a flexible and agile business model to adapt to market demands for combustion, hybrid, and electric vehicles [4] - The company has a strong order book in Europe, representing around two months of sales, reflecting product success [4] - The average plant utilization rate is around 90%, indicating efficient production capabilities [4]