Asger Risom
Renault reported a €10.9 billion net loss in 2025 due to a major accounting adjustment linked to Nissan, even as revenue rose 3% and electric vehicle sales surged.
Renault increased revenue and vehicle sales in 2025, but a major accounting adjustment tied to its long-standing alliance with Nissan pushed the French carmaker deep into the red.
The group reported net losses of €10.931 billion for the year, even as turnover rose and operating profitability remained solid.
Nissan impact weighs heavily
Renault’s revenue climbed 3% to €57.922 billion in 2025, while operating margin reached €3.632 billion, or 6.3% of sales. That compares with 7.6% in 2024, reflecting tougher market conditions and rising competition in Europe.
The headline loss stems primarily from a €9.3 billion non-cash impact linked to a change in the accounting treatment of Renault’s stake in Nissan. The Japanese carmaker also contributed a negative €2.331 billion to results before the consolidation method was revised.
Excluding the Nissan-related effects, Renault said net profit would have stood at €715 million — still 72% lower than the previous year.
Sales and electrification grow
Operationally, the group showed resilience. Renault sold 2,336,807 vehicles worldwide in 2025, up 3.2% in a global market that expanded by 1.6%.
In Europe, Renault remained among the leading manufacturers, while internationally the Renault brand posted 11.7% growth, driven by strong demand in Latin America, South Korea and Morocco.
Electrified vehicles were a key growth driver. Sales of fully electric models jumped 77.3%, while hybrids rose 35.2%. Electrified cars now account for 44% of Renault’s European sales mix, with EVs representing 14% and hybrids 30%. The company noted, however, that higher technology costs continue to weigh on margins in the short term.
Margins and cash flow
The Automotive division posted an operating margin of 4.2%, affected by foreign exchange pressures — particularly in Argentina — higher warranty costs and a less favourable regional mix. The deconsolidation of Horse Powertrain and competitive pricing in Europe also weighed on profitability.
Renault said it reduced variable costs per vehicle by around €400 through purchasing and industrial efficiency improvements.
Free cash flow in the Automotive division reached €1.473 billion, including €300 million in dividends from Mobilize Financial Services. The division generated €4.744 billion in self-financing capacity.
Financial position and outlook
Renault ended the year with a net automotive financial position of €7.37 billion and liquidity reserves of €17.7 billion. S&P upgraded the group’s credit rating to BBB- with a stable outlook, restoring investment-grade status.
The board will propose a dividend of €2.20 per share, unchanged from the previous year.
For 2026, Renault expects an operating margin of around 5.5% and automotive free cash flow close to €1 billion. Over the medium term, it aims to maintain margins between 5% and 7% and average annual cash generation of at least €1.5 billion.
A new strategic roadmap is set to be presented on March 10, as the company seeks to reinforce its asset-light model, accelerate electrification and expand internationally amid ongoing transformation in the automotive sector.
Sources: elEconomista.es
