Renault posted a net loss of €11.19 billion ($13 billion) for the first half of 2025, weighed down by a €9.3 billion one-off charge related to its investment in Nissan and challenging market conditions, the French carmaker said on Thursday.
The writedown, previously flagged earlier this month, dragged the group’s net result deep into negative territory despite a 2.5% increase in revenue to €27.6 billion, supported by new product launches. Renault’s operating margin fell by 2.1 percentage points to 6% in the period, with weakness in its commercial van business cited as a key factor.
Excluding the Nissan-related impact, net income attributable to the group reached €461 million, less than one-third of the prior year’s figure. The drop reflected pressure from electric vehicle development costs, commercial challenges, and intense competition.
“Our first-half results, in a challenging market, were not aligned with our initial ambitions,” newly appointed CEO Francois Provost said in a statement. “Nevertheless, Renault Group’s profitability remains a reference in our industry, and we are determined to maintain this standard.”
CFO Duncan Minto said the company expects a recovery in operating margin in the second half, potentially approaching the 7.1% level seen during the same period last year. “We will benefit in the second half from lower costs than when we manufactured the engines ourselves,” Minto told reporters, referring to the spin-off of Renault’s internal combustion and hybrid engine business, Horse.
Renault brought in China’s Geely and Saudi Aramco as investors in Horse, a move designed to share costs and improve agility.
The group lowered its full-year forecast earlier this month due to tougher market conditions, especially in the commercial vehicle segment. It now expects an operating margin of around 6.5% in 2025, down from a previous goal of at least 7%, and free cash flow of €1.0 billion to €1.5 billion, compared to a prior forecast of at least €2 billion.