Schneider Electric shares pop 6% as record profit beats expectations; Europe stocks mixed

French automaker Renault on Thursday posted its highest-ever annual operating profit while revenues came in well above expectations, as the company said its “unprecedented” flurry of product launches had boosted performance.

Group revenue increased 7.4% year on year to 56.2 billion euros ($58.6 billion), ahead of the 54.4 billion euros forecast in an LSEG-compiled analyst aggregate. Operating income meanwhile rose to 2.58 billion euros from 2.49 billion euros.

However, group net income plunged to 891 million euros from 2.32 billion euros, which it attributed to a 2 billion euro capital loss from its disposal of shares in Nissan and other effects from its partnership with the Japanese carmaker.

Renault’s share price has climbed nearly 40% over the last year as it has embarked on cost-cutting and focused on the rollout of new affordable electric and hybrid models — a task posing a challenge for many auto firms amid weaker-than-expected consumer demand.

Renault said Thursday it would accelerate cost reduction in 2025 along with launching new products, though said its operating margin outlook was for 7% in 2025, down from 7.6% in 2024. That estimate included around a percentage point of estimated negative impact due to European Union regulation on CO2 emissions known as CAFE, the company said.

Airbus on Thursday reported an 8% year-on-year drop in adjusted operating profit to 5.35 billion euros ($5.58 billion) despite a 6% jump in revenue.

The annual figure was slightly below the 5.43 billion expected by analysts in an LSEG-compiled consensus, though the company’s fourth-quarter revenue and profit were just above consensus in a company-compiled poll. Earnings per share of 2.44 euros for the fourth quarter missed expectations of 2.46 euros.

The Toulouse, France-based planemaker also announced a closely watched target of 820 deliveries for 2025, above the 766 jets it delivered in 2024 but slightly behind the 825 expected by analysts. Last year, it was forced to trim its target of “near 800” deliveries in June, as supply chain snarls continued to plague the commercial aircraft sector.

On Thursday, it said supply challenges were challenging the ramp-up of production of its A350 and A220 models, and it pushed back the launch of its A350 freighter variant by around a year to the second half of 2027.

Profit at its defense and space unit swung to a loss of 656 million euros for the full year.

“While the initial 2025 guide brackets the low end of investor expectations, we believe the investor reaction to the [fourth quarter 2024] results will be positive, and confidence in the future production rates for commercial programs should be incrementally higher,” said RBC Capital Markets analyst Ken Herbert in a note to clients.

— Jenni Reid, Ganesh Rao

Schneider Electric reported record sales and profits, beating market expectations and its own targets.

The French industrial giant said its net profit for 2024 rose to 4.27 billion euros ($4.45 billion) from 4 billion euros in the prior year, beating analyst expectations of 4.2 billion euros, according to FactSet.

Sales rose 6.3% to 38.15 billion euros, beating market expectations of 37.6 billion euros.

Looking ahead, the company said it expects adjusted organic growth between 10% and 15%, driven partly by sales as well as margin improvement.

Schneider Electric has been a big beneficiary of the artificial intelligence trend as investors have rushed into the stock. It’s French listing rose by 39% in 2023, followed by 33% in 2024.

— Ganesh Rao

China kept its key lending rates unchanged Thursday, as Beijing prioritizes financial stability over interest rate easing to bolster the economy.

The People’s Bank of China held the 1-year loan prime rate unchanged at 3.1%, and the 5-year LPR at 3.6%  

The benchmark lending rates — normally charged to banks’ best clients — are calculated monthly based on designated commercial banks’ proposed rates submitted to the PBOC. The one-year LPR influences corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage rates.

The decision on Thursday was in line with expectations Reuters poll estimates.

Read the full story here.

— Anniek Bao

U.S. President Donald Trump said during his remarks at the FII Priority Summit in Miami Beach, Fla., on Wednesday that he’s thinking of sending 20% of the money saved by the Department of Government Efficiency (DOGE) to Americans.

“There’s even under consideration a new concept where we give 20% of the DOGE savings to American citizens and 20% goes to paying down debt,” Trump said during his speech at the event.

The president’s comments come just a day after Elon Musk said in a post on X that he “Will check with the President” on a proposal to send U.S. households tax refund checks from the money saved by DOGE.

— Sean Conlon

The S&P 500 earned another record-high close on Wednesday as investors shook off worry tied to inflation and U.S. trade policy.

The broad market index added 0.24% to close at 6,144.15, while the Nasdaq Composite gained 0.07% to 20,056.25. The Dow Jones Industrial Average advanced 71 points, or 0.16%, to finish the session at 44,627.59.

— Brian Evans

European markets are expected to open higher Thursday.

The U.K.’s FTSE 100 index is expected to open 10 points higher at 8,696, Germany’s DAX up 49 points at 22,475, France’s CAC up 16 points at 8,118 and Italy’s FTSE MIB 32 points higher at 38,437, according to data from IG.

Earnings are set to come from Accor, Schneider Electric, Mercedes, Zurich Insurance, Lloyds Banking Group, Centrica, Airbus, Hays, Anglo American, Renault, Repsol, Leonardo and Aegon. There are no major data releases Thursday.

— Holly Ellyatt