Shares of French automaker Renault tumbled nearly 17% on Wednesday, marking the company’s sharpest single-day decline since March 2020. This came after the company issued a profit warning and announced a leadership change.
The Paris-listed stock fell to a new 52-week low, trading down 16.8% following Tuesday’s trading update in which Renault lowered its 2025 guidance. The company now expects an operating margin of around 6.5% for the year, down from its previous forecast of “around or exceeding 7%.” It also revised its free cash-flow target to a range between 1 billion and 1.5 billion euros ($1.16 billion–$1.74 billion), compared to the earlier estimate of roughly or above 2 billion euros.
While Renault had been outperforming some of its European peers in recent months, thanks in part to a strong pipeline of new vehicle launches, Wednesday’s revision highlights growing challenges. The carmaker, though somewhat shielded from U.S. trade disputes due to its absence in the American market, is grappling with soft European demand and heightened competition from Chinese automotive firms.
Alongside its revised outlook, Renault also announced the appointment of Duncan Minto as interim CEO. Minto, who currently serves as the company’s CFO, steps in following the sudden resignation of Luca de Meo last month after five years at the helm.
“Currently CFO of Renault Group, Duncan Minto will ensure the day-to-day management of the company alongside Jean-Dominique Senard, who will hold the position of Chairman of Renault s.a.s., the operating company of the Group, during this period,” Renault said in a statement.
The profit warning prompted swift reactions from investors and analysts. Deutsche Bank analysts lowered their target price for Renault stock from 55 euros to 47 euros, citing the guidance cut as a major sentiment blow. “While the new margin guide remains solid also relative to peers, we see the warning as an obvious additional hit on sentiment for shares,” they wrote in a research note.
Renault is scheduled to release its half-year financial results on July 31, which investors will closely scrutinize for further insight into the company’s financial health and strategic direction.
Shares of other major European automakers also fell on Wednesday amid broader market concerns. Stellantis declined 4%, while Volkswagen was down about 2%.
