Renault’s net income surges 21% to €2.8bn, while dividend raised 19%

Overview

Renault Group reported strong financial and operational results in 2024, exceeding guidance with record profitability and cash generation. The company achieved €56.2bn in revenue, €4.3bn in operating profit, and €2.9bn in free cash flow, driven by a solid product lineup, cost efficiencies, and increasing electrification. Renault also improved its automotive net cash financial position to €7.1bn, nearly doubling from 2023.

CEO Luca de Meo emphasized the company’s transformation into a more agile and efficient organization, reinforcing its long-term growth strategy: “Renault Group continues to improve its operational performance, execute its strategy and deliver on its targets. 2024 was an important year with the first benefits of our unprecedented product offensive. This performance is the result of an in-depth transformation of the company driven by a remarkable collective work. We have turned Renault Group into a much more flexible, efficient and performant company. And we will not stop there!”

Full-Year 2024 performance:

• Group revenue reached to €56.2bn (+7.4% YoY), reflecting growth across all brands.
  • Automotive revenue stood at €50.52bn (+4.9% YoY), riven by higher volumes (+1.3 pp vs. 2023), positive product mix (+2.7 pp vs. 2023), and stable pricing (+0.6 pp vs. 2023).
• Operating profit recorded a historical value of €4.3bn (+15% YoY), with operating margin of 7.6%, boosted by cost efficiencies and a better sales mix.
  • Mobilize Financial Services (MFS) contributed €1.3bn to operating margin, driven by strong financing growth.
• Net income (group share) was €2.8bn (+21% YoY) at an adjusted level, excluding Nissan’s impacts.
• Automotive net cash position rose to €7.1bn (+92% vs. 2023), nearly double compared to the last year, thanks to higher free cash flow and proceeds from Nissan stake disposals.
• Dividend was proposed at €2.20 per share (+19% YoY), reflecting Renault’s improved profitability and financial stability.
• The company had 10 new launches and 2 facelifts in 2024, with 7 more launches planned in 2025, strengthening Renault’s market position.
• Renault achieved also a 33% electrified sales mix in Europe (+4.1 pp YoY), with hybrid sales at 24% and EVs at 9%, boosted by strong demand for models like the Renault 5 and Scenic.
• Renault’s retail sales in Europe accounted for 63% of total sales, outperforming the market by +21 pp.
• The company improved across brands, with +9.1 pp for Renault and +9.5 pp for Dacia, reflecting strong demand and pricing power.

Renault expects another strong performance in 2025, balancing regulatory challenges and market shifts while continuing cost-cutting efforts and product expansion. The company targets a ≥7% operating margin, despite a 1 pp impact from CO₂ regulations (CAFE standards). Free cash flow is projected at ≥€2bn, including €150m from MFS dividends, which is lower than in 2024 due to regulatory capital requirements. Renault will leverage the full-year impact of its 2024 EV launches while accelerating hybrid expansion. With strict cost discipline to offset price stabilization, Renault remains focused on sustainable growth and profitability.

Although the company announced financial results that even reached record levels and were largely in line with analysts’ estimates, RNO shares ended this trading week on the French stock exchange with a price drop of approximately -7%.

Author: Ionuț-Adrian Lazar