Group 1 - The company expects a net loss of approximately USD 16 million for Q2 2025, compared to a net loss of USD 10 million in the same period last year, indicating a decline in performance [1] - The deviation in results is primarily driven by factors outside the company's control, including ongoing cost-saving measures and one-off transition costs related to a new business model [1] - The company’s core network and load factor performance remain in line with expectations, with RASK higher compared to last year [2] Group 2 - A negative foreign exchange impact of approximately USD 2.5 million was noted due to the strengthening of the Icelandic krona, affecting salaries, handling, and airport charges [3] - Delayed entry of one aircraft into service resulted in lost revenue of approximately USD 1.1 million due to maintenance issues [3] - Weaker than expected demand in the transatlantic market was attributed to a volatile geopolitical environment, tariff uncertainty, and macroeconomic softness [3]

Core Viewpoint - Renault has issued a profit warning, significantly lowering its full-year performance guidance, leading to a 17% drop in its stock price, the largest single-day decline since March 2020 [1][2]. Financial Performance - The company revised its full-year operating profit margin expectation from at least 7% to approximately 6.5%, below the market consensus of 7.1% [2]. - Free cash flow expectations were cut from at least €2 billion to a range of €1 billion to €1.5 billion, significantly lower than the analyst forecast of €2.09 billion [2]. - Preliminary results for the first half of the year showed an operating profit margin of 6%, below the analyst expectation of 6.8%, with revenue reported at €27.6 billion, slightly above the expected €27.46 billion [2]. Market Context - The profit warning highlights the ongoing downturn in the European automotive market, with analysts suggesting that Renault's decision may lead to further downgrades across the industry [1][6]. - Following the announcement, Renault's stock price fell to its lowest point in 2024 [4]. Analyst Opinions - UBS analyst Justinus Steinhorst noted that Renault contributed 60% to the automotive sector's sell-off on that day, with the UBS automotive index declining by 2.4% [6]. - Oddo analyst Michael Foundoukidis lowered the target price from €60 to €55, indicating a severe warning and suggesting the stock may be viewed as "dead money" until a new CEO is appointed [7]. - Morgan Stanley analyst Javier Martinez de Olcoz Cerdan acknowledged Renault as the first automaker to lower guidance, suggesting that the factors leading to this warning could prompt further downgrades in the industry [7]. - Citigroup analyst Harald Hendrikse maintained a buy rating, stating that Renault has performed better than many peers in facing increasing commercial pressures [7]. - JPMorgan analyst Jose Asumendi kept an overweight rating, emphasizing the importance of clarity regarding Renault's permanent CEO succession plan [7].