Renault posts €10 billion loss amid solid underlying performance

Thursday 19 - 12:50

By: Dakir Madiha

Renault posts €10 billion loss amid solid underlying performance

Renault Group has reported a net loss of €10 billion, a headline figure that contrasts sharply with what executives describe as one of the strongest financial positions in the company’s history. The discrepancy is largely the result of exceptional accounting charges tied to Renault’s withdrawal from the Russian market in 2022.

That year, the French automaker transferred its stake in AvtoVAZ and other Russian assets to the Russian state for a symbolic amount. The exit triggered a substantial one-time accounting write-down, which has weighed heavily on its 2025 financial statements. The charge does not reflect current operational weakness but rather the financial consequences of closing its Russian operations.

Stripped of the extraordinary impact linked to Russia, Renault’s core performance remained robust. Operating profit and free cash flow reached record levels, supported by a refreshed product range and a cost-reduction strategy led by Chief Executive Luca de Meo. Strong demand for new models, particularly hybrid vehicles, contributed to improved margins.

The company has also shifted its pricing approach, prioritizing profitability over volume growth. This strategy has helped stabilize earnings in a competitive automotive market marked by slowing demand in some regions and intensifying competition in electric mobility.

Market analysts attribute the apparent contradiction between the net loss and operational strength to the accounting treatment of the Russian exit and broader financial restructuring. They point to solid liquidity levels, reduced net debt and stronger margins as evidence that Renault’s financial foundations remain intact.

The latest results are seen as reinforcing Renault’s transition toward a more sustainable growth model. The group is preparing the spin-off of its electric vehicle division, Ampere, while expanding partnerships in software development and battery manufacturing as part of its long-term transformation plan.