Q2/H1-26 preview: cost work to counter headwinds

Research evidence excerpt

Q2/H1-26 preview: cost work to counter headwinds

Deutsche Bank

Research

Rating Company Date

Hold Renault SA 1 July 2026

Forecast Change

Europe

France

Reuters Bloomberg Exchange Ticker Price at 29 Jun 2026 (EUR) 25.28

RENA.PA RNO FP PAR RENA

Price Target (EUR) 35.00

Autos

ADR ISIN 52-week range (EUR) 41.86 - 25.28

Auto Manufacturing

US7596734035

Q2/H1-26 preview: cost work to counter

Valuation & Risks headwinds

Christoph Laskawi

H1-26 results due on July 30, 2026 Research Analyst

Renault is set to report H1-26 numbers on July 30 ahead of the open and is hosting +49-69-910-31924

a conference call the same morning. We model cost and mix headwinds to weigh

Tim Rokossa

on earnings in H1, which is expected to be partially mitigated by cost reduction Head of European Equity Research

measures. As guided, we expect an H1-26 margin below H2 and only close to +49-69-910-31998

around 5%. Higher sequential volumes and fully ramped mitigation measures

Nicolai Kempf

should drive a sequential margin improvement for H2. With this note, we slightly

Research Analyst

lower our forecasts for FY26, seeing a risk that the FY margin is drifting towards 5%,

+49-162-5168792

and as a result, we also lower our target price to EUR35. Approaching 5% from the

upper end, the margin would still rank above part of the European OEM space for Nikita Papaccio

FY26 overall. Research Analyst

+49-69-910-48637

Q2/H1-26 preview in more detail: flatish volumes with cost and mix drag Mira Wiegratz

Research Associate

For Q2-26, we model mid-single-digit revenue growth for the group, driven by both

+49-69-9103-1733

Automotive and MFS, so that H1-26 should end up close to 5% higher y/y. With

regards to operating income, we model a positive volume contribution thanks to

Key changes