Francois Provost 1.7 1 idea

Renault reported an operating margin of 5.5% for 2025, missing the 5.9% estimate. 2026 guidance is also weak at 5.5%. Despite the CEO's claims that the "strategy is good," the numbers show structural margin compression. The company is caught between high EV investment costs and intense competition, failing to deliver the efficiency promised. SHORT/AVOID. Legacy auto manufacturers in Europe are value traps until margins stabilize. Unexpected success of new EV models or government bailouts.