Key facts
- Renault reported a first-half net profit of 700 million euros, a turnaround from a significant loss in the prior year.
- First-half revenue increased by 9.4% to 30.25 billion euros.
- Electric vehicle sales jumped 47.6%, with EVs accounting for one in five vehicles sold.
- The company maintained its 2026 operating margin target of 5.5% despite increased competition.
- Overall unit sales decreased by 0.4% due to logistical issues and a strategic focus on value over volume.
Renault has returned to profitability in the first half of the year, reporting a net profit of 700 million euros compared to a substantial loss in the same period of 2025. This turnaround was achieved despite a slight decrease in overall sales volumes, which fell by 0.4% to 1.17 million vehicles. The company's revenue saw a 9.4% increase, reaching 30.25 billion euros.
The French automaker's performance was influenced by a value-over-volume strategy, aimed at protecting margins amidst intense competition, particularly from expanding Chinese brands in its key European market. While the core Renault brand experienced growth in Europe, its budget brand Dacia saw sales decline, partly due to logistical issues in the first quarter. Renault generates over 70% of its sales in Europe, where it has reduced lower-margin sales to focus on retail customers. The demand for electric vehicles has accelerated, a segment where Chinese manufacturers are offering highly competitive prices.
Renault's operating margin for the first half was 5.2%, slightly down from the previous year but above analyst expectations. The company confirmed its 2026 operating margin target of 5.5%. Sales of fully electric cars jumped 47.6%, with EVs accounting for one in five new vehicles sold. The prior year's significant net loss was largely due to a one-time charge related to Renault's stake in Nissan.