Renault shares fall after French carmaker lowers 2025 guidance

Shares of French carmaker Renault plummeted by 17% on Wednesday following the company’s revised 2025 guidance and the appointment of a new interim CEO.

The Paris-listed stock experienced a 15.6% decline, reaching a new 52-week low and marking its worst trading day since March 2020.

In a trading update released on Tuesday, Renault adjusted its operating margin target for this year to approximately 6.5%, down from the previous estimate of 7%.

The company also revised its free cash-flow projection to between 1 billion euros ($1.16 billion) and 1.5 billion euros, a decrease from the initial forecast of around 2 billion euros.

Furthermore, Renault disclosed the appointment of Duncan Minto as the interim CEO following Luca de Meo’s sudden departure last month.

“Currently CFO of Renault Group, Duncan Minto will oversee the day-to-day operations of the company alongside Jean-Dominique Senard, who will serve as Chairman of Renault s.a.s., the Group’s operating entity, during this period,” Renault stated.

Renault is scheduled to announce its half-year results on July 31.

Deutsche Bank analysts lowered their target price to 47 euros from 55 euros in response to Renault’s profit warning.

“While the new margin guidance remains strong compared to competitors, we view the warning as an additional blow to investor sentiment,” Deutsche Bank analysts noted in a research update.

JPMorgan analysts highlighted that Renault’s new management structure will encounter challenges from subdued demand in Europe, ongoing trade tensions, and increased competition from Chinese automakers.

— CNBC’s Jordan Butts contributed to this report.