In the first quarter, the automaker saw its revenue grow by 7.3% to 12.53 billion euros, driven by both the Automotive division and Mobilize Financial Services (MFS), the group's financing arm. At constant exchange rates, revenue increased by 8.8%.

Breaking down the figures, the Automotive division generated revenue of 10.807 billion euros, representing a 6.5% increase, or 8% on a constant currency basis.

During the first three months of the year, the group sold 546,183 vehicles, a 3.3% decline attributed to non-recurring factors at Dacia. Meanwhile, sales for Renault and Alpine rose by 2.2% (to 397,602 units) and 54.7%, respectively. Conversely, Dacia sales slumped by 16.3% to 145,335 units due to severe weather conditions that disrupted logistics and production. However, a recovery has already begun for the brand, with sales up 1.9% in March.

Concurrently, MFS revenue reached 1.723 billion euros (+13% on a reported basis, or +14.1% at constant exchange rates).

Renault Group confirmed its full-year financial outlook. The operating margin is still expected to reach approximately 5.5% of revenue, with Automotive free cash flow projected at around 1 billion euros.

Renault, Oddo BHF's preferred stock in the European sector

According to Oddo BHF, the revenue disclosed by the company is 7% above the consensus estimate of 11.7 billion euros. Analysts believe volumes exceeded expectations in the Automotive division and through sales to partners. Business was also bolstered by sales financing, according to Oddo BHF.

Analysts reiterated that Renault remains their top pick within the European sector. They consider the group to be less exposed to the major risks facing its peers, such as China and U.S. tariffs, and more resilient than the market anticipates. Furthermore, following underperformance over the last 12 months, the valuation has become more attractive. Finally, according to Oddo BHF, the current outlook points to absolute profitability that should rank among the best of European mass-market manufacturers, supported by robust product momentum and tangible progress on costs.

The recommendation remains Outperform, with a price target of 45 euros, representing an upside potential of approximately 44% compared to the previous day's close.