French automaker Renault reported a record operating profit of €4.3 billion ($4.49 billion) for 2024, slightly exceeding expectations, as cost reductions and a wave of new model launches bolstered margins.
The profit figure marked a 3.5% increase from the previous year and surpassed a company-compiled forecast of €4.2 billion. Revenue rose 7.4% to €56.2 billion, driven by the launch of new models, including the compact electric Renault 5 and a range of hybrid vehicles. Renault’s shares dipped in early trading but had gained 9% since the start of the year. JPMorgan analysts described the results as “a strong set of numbers.”
See also: Renault Opens ‘Fireman Access’ Technology to Industry to Enhance EV Safety
Renault’s 2024 operating margin stood at 7.6%, meeting its target of at least 7.5%. However, the automaker lowered its 2025 margin outlook to at least 7%, citing stricter European carbon emissions rules, which it said would reduce margins by one percentage point, equivalent to about €500 million in operating profit.
The company plans to offset these costs by increasing petrol car prices while offering discounts on electric vehicles. “We consider it a bit surreal that we have to pay money to non-European competitors,” CEO Luca de Meo told analysts, emphasizing Renault’s independent strategy instead of pooling emissions with other automakers.
See also: Geely to Produce Zero- and Low-Emission Vehicles at Renault’s Brazil Facilities
Unlike rivals Volkswagen and Stellantis, Renault did not issue a profit warning last year, benefiting from an extensive manufacturing and strategic overhaul that began in 2020. The company cut costs by nearly €800 million in 2024, including €500 million in procurement savings. However, group net income fell to €752 million from €2.2 billion a year earlier due to a reduced stake in Nissan and a lower earnings contribution from the Japanese automaker.
Renault said it would continue to reduce its Nissan stake “at the right time” without compromising asset value. The company announced a dividend of €2.2 per share, up from €1.85 in 2023.
