Renault Delivers Strong Q1 Revenue Growth
Renault reported a stronger-than-expected start to the year, with first-quarter revenue rising 8.8% at constant exchange rates to €12.53 billion ($14.67 billion). The result comfortably exceeded analyst forecasts of €11.57 billion, highlighting solid operational performance despite a challenging macro backdrop.
Automotive Division Drives Performance
The company’s automotive segment was the primary growth engine, generating €10.81 billion in revenue—an 8% increase at constant currency.
Vehicle sales showed moderate growth, increasing by 3.8% in Europe and 2.2% globally, reflecting steady demand across key markets.
Market Uncertainty and Cost Pressures
Renault acknowledged rising uncertainty linked to geopolitical tensions, particularly in the Middle East. The company stated it is implementing additional measures to limit the potential impact on raw materials, energy, and logistics costs.
Vehicle Sales Dip Due to Dacia Factors
Total vehicle sales reached 546,183 units in the first quarter, representing a 3.3% decline compared to the same period last year. The drop was mainly attributed to one-off issues affecting Dacia.
However, sales from Renault’s core brand and Alpine posted growth, helping offset the weakness.
Strong Product Momentum Supports Outlook
Chief Financial Officer Duncan Minto highlighted the company’s strong product momentum across both passenger and light commercial vehicles. He also noted that order intake has remained in double-digit growth since the beginning of the year, signaling continued demand strength.
Full-Year Guidance Maintained
Despite ongoing challenges, Renault reaffirmed its full-year outlook. The company continues to target an operating margin of around 5.5% of group revenue, along with automotive free cash flow of approximately €1 billion.
