Renault (RNO) Q1 2026 TU earnings summary

Executive summary

• Group revenue rose 7.3% year-over-year to €12.5 billion in Q1 2026, with automotive revenue up 6.5% to €10.8 billion and Mobilize Financial Services (MFS) revenue up 13% to €1.7 billion.

• Strong EV and hybrid sales drove product mix improvement, with BEV sales up 21% and hybrids up 49% for Dacia; electrified vehicles made up over half of European sales.

• Worldwide sales declined 3.3% due to one-off Dacia issues, but Renault and Alpine brands grew, and March saw a 5.3% global sales recovery.

• Inventory management remained disciplined, with 554,000 units at quarter-end and a robust order book supporting Q2.

Financial highlights

• Group revenue increased 7.3% year-over-year (8.8% at constant FX), reaching €12.5 billion, with automotive revenue at €10.8 billion and MFS revenue at €1.7 billion.

• Positive price, product mix, and geographic mix effects drove automotive revenue, offsetting lower volume.

• Negative FX impact of -1.5 points, mainly from Turkish lira and Argentine peso devaluation.

• Sales to partners contributed 5.9 points to revenue growth, notably from Nissan Micra and RNAIPL integration.

• Product mix added +2.6 points to revenue, driven by EVs and new model launches.

Outlook and guidance

• 2026 guidance confirmed: Group operating margin around 5.5% of revenue and automotive free cash flow of ~€1 billion, including €350 million dividend from MFS.

• H2 operating margin expected to exceed H1, following seasonal patterns.

• Cost reduction remains a priority amid anticipated negative impacts from raw materials, energy, and inflation.

• International expansion, partner sales, EV growth, and RNAIPL consolidation to drive revenue, though margin dilutive.