Renault shares rise after reaffirming full‑year guidance
Renault shares edged higher on Wednesday, climbing as much as 3% before paring to roughly 1.7% in Paris trading, after the French carmaker confirmed its full‑year outlook in a pre‑close briefing with investors ahead of its first‑half results.
Confirmed operating targets
The company reiterated its target annual operating margin of 5.5% and maintained its forecast of €1 billion free cash flow for the full year. This guidance sits above consensus estimates, according to Jefferies analysts led by Philippe Houchois.
Jefferies estimates and cautions
Jefferies left its own full‑year estimates unchanged, projecting earnings before interest and tax (EBIT) of €2.76 billion at a 4.8% margin and free cash flow of €986 million. The broker expressed caution on the second‑half (H2) outlook, noting that guidance for H2 margins to exceed those of the first half carries downside risk given competitive market conditions. For the first half, Jefferies estimates adjusted EBIT of around €1.32 billion at a 4.6% margin, with free cash flow expected to be near breakeven.
Upcoming results and strategic push
Renault is scheduled to report its first‑half results on 30 July. The firm continues a strategic push under new chief executive François Provost to sell more than 2 million Renault‑brand vehicles by 2030.
Recent performance backdrop
Renault’s shares have been under sustained pressure since mid‑2025, when the company issued a profit warning, flagged weakening European demand, and replaced its CEO. In 2025 the group reported a 15% decline in operating profit, with the operating margin falling to 6.3% from a record 7.6% the prior year. The company now guides for a further margin decline to around 5.5% in 2026.