Renault Shares Drop To New Low as Guidance Slashed and CEO Departs

In a dramatic turn of events, Renault shares (RNO.PA) have fallen a staggering 17% today, marking the steepest single-day decline for the French automaker since the market crash of March 2020. This brought new 52 week lows of €33.72 early in the session, with the share price down 27.5% since the start of the year.

The rout was triggered by a double whammy of negative news: a significant downward revision of Renault’s 2025 financial guidance and the sudden departure of CEO Luca de Meo, who is slated to lead luxury group Kering.

The abrupt leadership change and profit warning have sent shockwaves through the investment community, raising serious questions about Renault's near-term prospects and its ability to navigate an increasingly challenging automotive landscape.

The revised guidance paints a less optimistic picture than previously projected. Renault now anticipates an operating margin of approximately 6.5% for 2025, a considerable step down from the earlier target of at least 7%. The free cash flow forecast has also been substantially reduced, now expected to fall between €1 billion and €1.5 billion, a significant decrease from the previous minimum target of €2 billion. The company attributed this adjustment to weaker-than-expected sales figures in June and heightened competition within the European automotive market, particularly in the van and retail segments.

The pre-announcement of half-year (H1) results further amplified investor concerns. While revenue of €27.6 billion was broadly in line with expectations, an operating margin of 6% – approximately 12% below consensus estimates – and a meager €47 million in free cash flow, hampered by a €900 million negative working capital impact, signaled deeper underlying issues. Analysts estimate that the revised full-year guidance implies an 8–10% cut to 2025 group operating profit.

Adding to the uncertainty is the sudden resignation of CEO Luca de Meo, who is leaving Renault to take the helm at Kering, the luxury conglomerate.

De Meo, credited with spearheading Renault’s turnaround strategy in recent years, leaves a void at a critical juncture. Duncan Minto, Renault’s current Chief Financial Officer, has been appointed as interim CEO to manage daily operations alongside Chairman Jean-Dominique Senard while the search for a permanent successor is underway. Minto, a company veteran since 1997, faces the immediate challenge of stabilizing the company and reassuring investors amidst turbulent times.

Renault is scheduled to report its full H1 earnings on July 31, 2025, which will provide a more comprehensive picture of the company’s financial health and strategic direction.