Renault forecasts lower margins for 2026 as price pressure impacts profits

Renault reported a 15 percent drop in operating profit for 2025 amid intense competition. The group expects margins to decline further to 5.5 percent in 2026.

Insights:
Renault Group reported a 15% fall in operating profit for 2025 and forecast lower group operating margins for 2026 on February 19, 2026. The company, which is headquartered in France FRFR, issued the downgrade alongside its full-year 2025 results, which showed a group operating margin of 6.3%. This announcement has already reduced Renault's profitability and dented its share price, highlighting the intense competitive stress currently affecting the European automotive sector.
FILE PHOTO: The logo of French car manufacturer Renault is seen in front of a dealership in Villepinte near Paris, France, January 22, 2025. REUTERS/Abdul Saboor/File Photo
FILE PHOTO: The logo of French car manufacturer Renault is seen in front of a dealership in Villepinte near Paris, France, January 22, 2025. REUTERS/Abdul Saboor/File Photo
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