Renault Group has reported a significant financial turnaround in the first half of its 2026 fiscal year (January to June 2026), announcing a net profit attributable to owners of 705 million euros. This marks a strong recovery from the previous year’s substantial loss, exceeding market expectations and aligning with the company’s full-year financial guidance.
Strong Revenue Growth and Profitability
The French automaker announced total revenues of 30.252 billion euros for the first half of 2026, representing a healthy 9.5% increase year-over-year. This growth was driven by both its core automotive business, which saw revenues rise by 9.3% to 26.806 billion euros, and its financial services division, which reported a 10.9% increase in revenue to 3.446 billion euros.
The return to profitability was a key highlight, with the net profit attributable to owners swinging from a loss of 11.185 billion euros in the same period last year to a profit of 705 million euros. This turnaround is further underscored by the improvement in earnings per share, with basic EPS standing at 2.39 euros and diluted EPS at 2.36 euros, both a significant recovery from the prior year.
Positive Free Cash Flow and Financial Health
Renault’s automotive operations also generated a positive free cash flow of 653 million euros in the first half of 2026, a stark contrast to the net outflow of 62 million euros experienced last year. This positive cash flow generation strengthens the company’s financial position.
As of June 30, 2026, the net financial position of the automotive business stood at a healthy 6.57 billion euros, indicating improved financial stability.
Electrification and Brand Performance
The company also highlighted its progress in electrification, with electric vehicles accounting for 52.0% of sales in the European market, an increase of 8.2 percentage points compared to the previous year. Pure electric vehicle sales within this mix rose by 6.5 percentage points to reach 18.8%.
The performance of its premium brand, Alpine, was particularly noteworthy, with global sales surging by 69.1% year-over-year, setting a new record for the first half of a fiscal year.
Full-Year Financial Outlook
Renault Group reaffirmed its full-year financial outlook for 2026. The company anticipates an operating profit margin of approximately 5.5% and expects its automotive business to generate around 1 billion euros in free cash flow for the full year.
“This half-year performance is a testament to our team’s dedication and the successful execution of our strategic initiatives, particularly in electrification and cost management. We are confident in our trajectory to meet our full-year targets and continue to build a stronger, more sustainable Renault Group,” a company spokesperson might have stated (note: no direct quote was provided in the source text).
The company’s core business involves the research, development, production, and sale of passenger cars and light commercial vehicles, complemented by automotive sales financing services. Renault is actively pursuing its electrification transformation and its ‘futuRE ready’ strategy, aiming to solidify its position as a leading European automotive manufacturer globally.
