Renault H1 Group operating margin hit 8.1%, ahead of the 7.5% full-year target. Revenue rose 10% to €27.4B. The next milestone is the Q3 report in October.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Renault Group posted an 8.1% group operating margin for the first half of 2026, ahead of the pace needed to hit its full-year target of at least 7.5%. Revenue rose 10% to €27.4 billion, driven by a richer sales mix. Electric vehicles made up 27% of deliveries in the second quarter, up from 22% in the first.
CEO Francois Provost, marking one year in the role, said the futuREady plan is delivering concrete results. The company reaffirmed its full-year outlook: group operating margin of 7.5% or higher and automotive free cash flow of at least €2.5 billion.
“Our H1 performance demonstrates the strength of our execution,” CFO Duncan Minto said. “We are well on track to deliver our full-year guidance.” Net income landed at €1.7 billion, up from €1.4 billion a year earlier. From the automotive division, free cash flow reached €1.3 billion, compared with €0.8 billion in H1 2025.
Revenue by brand reflected the strategy of prioritizing value over volume. Renault brand revenue rose 12.1%. Dacia revenue gained 5.2%. Alpine posted a 45% revenue jump. The automotive operating margin reached 6.8% in the half, up from 6.2% a year earlier. The improvement reflects better industrial performance and lower raw material costs, the group said.
Fixed costs declined by €300 million in the period, accelerating from a €200 million reduction in the first half of last year. CO2 compliance runs ahead of schedule, limiting the regulatory penalty risk that has weighed on some competitors. The order bank stood at 2.5 months of sales in Europe, up from 2.2 months at the end of 2025.
Renault Group gained market share in Europe during the half. The group said it is confident in delivering the full-year guidance, citing the strong H1 base and a solid product pipeline. The rollout of new models, including the fully electric Renault 4 and Dacia Bigster, supports the volume and mix outlook. The Renault 4 EV launches in the second half with a starting price below €30,000 in France.
The automotive division's net cash position stood at €8 billion at the end of June. Renault said the balance sheet provides a buffer for investment in electrification and software.
Roughly two-thirds of Q3 sales are already covered. The next scheduled update is the Q3 revenue report in October.
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