Renault’s 2025 Outlook Takes A Hit After $1M Working Capital Blow; CFO Minto Steps In As Interim CEO

Weaker LCV sales, billing delays, and high inventories pressured Renault’s finances, prompting new cost-cutting efforts amid a slowing European market.

Renault Group on Monday cut its financial guidance for the full year (FY) 2025 after posting preliminary first-half results, which were dented by softening retail market, operational headwinds, and working capital challenges. 

The company also named Chief Financial Officer (CFO) Duncan Minto as interim CEO, effective immediately.

The automaker now expects an operating margin of around 6.5% for FY25, down from its previous guidance of 7% or more. 

Free cash flow is projected between €1 billion and €1.5 billion ($1.16 billion-$1.74 billion), lower than the earlier forecast of at least €2 billion.

Renault’s revenue grew 2.5% in the first half of 2025 to €27.6 billion, but profits were squeezed. 

The operating margin slipped to 6%, and free cash flow dropped to just €47 million, dragged down by a €900 million hit from working capital issues.

 Renault said sales of its light commercial vehicles came in below expectations, while billing delays at the end of June and higher-than-planned inventory levels added to the pressure.

With retail demand continuing to slide in Europe and rivals becoming more aggressive, the company plans to tighten its belt. It’s looking to cut costs in areas like administration, manufacturing, and R&D to help protect its bottom line.

Alongside the financial update, Renault appointed CFO Duncan Minto as interim Chief Executive Officer. 

Minto, who joined Renault in 1997 and assumed the role of Group CFO in March 2025, will continue to serve in this capacity until a permanent CEO is appointed. Jean-Dominique Senard will act as Chairman of Renault s.a.s. during the transition.

The selection process for the new CEO is underway, according to the company.

According to analysts cited by Reuters, potential successors include Denis Le Vot, the current head of Renault's Dacia brand, and Maxime Picat, Stellantis’ global purchasing chief and former Peugeot CEO. 

Le Vot is seen as a strong internal candidate following Dacia’s success with models like the Sandero and Duster. 

Picat was previously in the running for the top role at Stellantis. 

Analysts at Kepler Cheuvreux and JP Morgan have also flagged the possibility of external hires, potentially from Volkswagen or Nissan.

On Stocktwits, retail sentiment for Renault was ‘neutral’ amid ‘extremely low’ message volume.

Renault’s U.S. shares have declined 5.4% so far in 2025.

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