Renault forecasts lower margins for 2026 as competition and price pressure hit profits

Renault expects lower 2026 margins as competition and global expansion hit profits. The group posted its first annual net loss in five years on Thursday.

Insights:
Renault Group reported a 15% drop in its 2025 operating profit on February 19, 2026, while issuing guidance for lower group operating margins in the upcoming year. The company expects its operating margin to settle around 5.5% in 2026, down from the 6.3% margin recorded during 2025. These results and the cautious forward guidance reflect a reduction in near-term profitability and a shift in the company's earnings trajectory, following a year in which the share price declined by approximately 25%.
The logo of French car manufacturer Renault is seen in front of a dealership in Villepinte near Paris, France, on January 22, 2025. REUTERS/Abdul Saboor/File Photo
The logo of French car manufacturer Renault is seen in front of a dealership in Villepinte near Paris, France, on January 22, 2025. REUTERS/Abdul Saboor/File Photo
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