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Renault shares drop sharply after guidance cut

Renault's share price fell by 17% following a reduction in its 2025 guidance and leadership changes.

July 16, 2025 at 07:36 AM

Renault shares fall after French carmaker lowers 2025 guidance

Renault has lowered its 2025 guidance and announced the appointment of a new interim chief executive officer.

Renault shares drop sharply after company cuts guidance for 2025

Shares of French carmaker Renault fell up to 17% on Wednesday after the company revised its guidance for 2025 and announced a new interim CEO. The stock was trading down 15.6%, reaching a 52-week low. In a recent trading update, Renault adjusted its target operating margin from 7% to 6.5% and reduced its free cash flow expectations from over 2 billion euros to between 1 billion and 1.5 billion euros. With Duncan Minto now serving as interim CEO following Luca de Meo's resignation, the company faces scrutiny as it prepares to release half-year results on July 31. Analysts have reacted by downgrading target prices, citing concerns over sentiment and ongoing challenges in the market.

Key Takeaways

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Renault shares fell 17%, reaching a 52-week low after guidance cut.

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Operating margin target lowered to 6.5% from 7%.

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Free cash flow expectations revised to 1-1.5 billion euros.

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Duncan Minto named interim CEO amid leadership changes.

"Currently CFO of Renault Group, Duncan Minto will ensure the day-to-day management of the company."

This statement highlights the transition in leadership at Renault following the departure of Luca de Meo, aiming to reassure stakeholders.

"While the new margin guide remains solid also relative to peers, we see the warning as an obvious additional hit on sentiment for shares."

Deutsche Bank's analysts emphasize the impact of reduced forecasts on investor feelings about Renault's future.

This drop in Renault's stock highlights the fragility of the automotive market amid economic pressures. Lowering guidance often signals deeper issues within a company, such as declining demand or increased competition, particularly from Chinese manufacturers. The appointment of a new interim CEO adds further uncertainty as investors seek stability in leadership during a turbulent period. Renault's path forward will be closely watched, especially with analysts pointing to muted demand in Europe.