Renault reported a net loss of approximately 2 trillion yen due to accounting changes related to its Nissan shares, despite a modest increase in overall sales.
Renault announced a staggering net loss of approximately 2 trillion yen (roughly 109.31 billion euros) in its financial results for the fiscal year ending December 2025, attributing this significant deficit predominantly to a 9.3 billion euro loss incurred following alterations in the accounting treatment of its Nissan shares. This change occurred in June of the previous year, which led to a reevaluation of the valuation of Nissan as a financial asset based on its stock price, coinciding with a downturn in Nissan's shares and contributing to heightened losses in Renault's first-half results for the period from January to June 2025.
Despite the monumental financial setback, Renault reported a 3.2% increase in global sales volume, totaling 2.3368 million vehicles. The overall revenue rose 3.0%, reaching 57.922 billion euros. Excluding the impacts from Nissan, the company noted a positive net profit of 715 million euros. However, challenges remain as the competition in the European market intensifies, compounded by a higher share of electric vehicle (EV) sales that come with relatively lower profit margins, causing a decline in the operational profit margin within the automotive division, which shrunk to 4.2% from 5.9% the previous year.
During a press conference on the same day, CEO François Provost emphasized that Nissan’s top priority must be the success of its restructuring plan, expressing confidence in the Nissan team’s ability to achieve their goals. He suggested that as Nissan begins to stabilize, further opportunities for collaboration could arise, indicating a potential shift in the partnership dynamic between Renault and Nissan as they navigate these financial and operational challenges together.
