Renault Earnings Decline 2025 as European Competition Pressures Margins
Renault Earnings Decline 2025 became a major talking point after the company shared its latest results. The automaker reported a 15% fall in operating profit this year. As a result, experts now expect lower margins in 2026. The company faces rising price pressure in Europe. In addition, strong competition from Chinese car brands is affecting earnings.
Competition Impacts Performance
Chinese automakers continue to expand across Europe. Therefore, traditional carmakers now face intense pricing pressure. This trend has started to reduce profits for many companies.
Renault’s operating profit reached 3.6 billion euros in 2025. Meanwhile, the operating margin stood at 6.3%. Analysts had already predicted these figures earlier.
Revenue Shows Slight Growth
Despite the Renault Earnings Decline 2025 update, revenue increased slightly. Full year revenue reached 57.9 billion euros. This marks a 3% rise compared to last year. New vehicle launches supported this growth. Overseas sales also improved during the year. For example, global demand helped offset weak regional pricing.
Loss Linked to Nissan Stake Writedown
However, Renault reported a full year net loss of 10.9 billion euros. This is the company’s first loss in five years. A one time write-down caused most of this decline. The writedown reached 9.3 billion euros. It relates to Renault’s investment in Nissan. As a result, group earnings dropped sharply. Even so, Renault will maintain its shareholder dividend. The company confirmed a payout of 2.20 euros for 2025. This matches the dividend paid in 2024.
