As the company’s management announced, the Renault Group will once again be among Europe’s arms manufacturers. The European automotive sector has been under pressure from adverse macroeconomic factors for many years, and Renault is no exception.
The French company is performing moderately well compared with other European manufacturers. Back in 2024, the company reported a record operating margin of 7.6% and revenues of EUR 56 billion. Estimates for 2025 show a slowdown in revenue growth and a slight decline in margin. The difficult situation in the sector is also affecting the company—has management just found a way to break the company’s valuation and results out of stagnation?
The company’s portfolio is already highly diversified. It manufactures passenger cars across almost all segments, commercial vehicles, trucks, as well as a full range of batteries and electric drivetrains. Drones branded “Chorus” are now expected to join these products.
Not all details of the new contract are public, which suggests it may be of major importance to the French Ministry of Armed Forces. The first drones are to be delivered to the French army in mid-2026. If the company meets expectations, it could secure a 10-year contract worth EUR 1 billion.
Preliminary arrangements point to a target production rate of 600 drones per month. This translates into about 7,000 drones per year, which under an EUR 1 billion contract, implies a unit price of roughly EUR 13,000–14,000. From a revenue perspective, these figures are not particularly impressive, but given that weapons systems often carry margins 3–4 times higher than cars, the contract could noticeably increase the company’s profitability.
Such diversification clearly highlights the fundamental transformation taking place in European industry and the wider economy.
RNO.FR (D1)
The company's valuations have been through a difficult period, recently defending the €30 level again. The news of its expansion alone has fueled a rise of over 4%. Is this just a temporary rebound, or could it prove to be a trend reversal? Source: xStation5
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