Renault SA
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| %C | LOCK|GSP | LOCK|W^BCT@s |
Renault Earnings: Bucking the Trend of European Automakers With Strong 2024 Results and 2025 Outlook
No-moat Renault reported a strong result for 2024, an exception among the European mass-market automotive original equipment manufacturers. Group revenue rose 7.4% (9% at constant currency) and underlying operating income (excluding the hit from the Horse deconsolidation) increased 14.6%, delivering an operating margin of 7.4% in 2024 versus 6.9% in 2025. Net income declined materially on noncash recognition of losses from the sale of Nissan shares, as well as a partial impairment of remaining shares. Free cash flow of EUR 2.9 billion reflects a free cash flow margin of over 5% and cash conversion ratio greater than 100%. Strong cash flow supported growth in the automotive net cash position to EUR 7 billion in 2024 from EUR 3.7 billion in 2023. A dividend will be paid from net income, adjusted for the Nissan-related losses and impairments, with Renault declaring a EUR 2.20 dividend per share, up 19% year over year.
