Renault SA ($RNO)

Good morning, everyone. Welcome to Renault Group's First Quarter 2026 Conference Call. I remind you that this call is broadcast live and will be available in replay version on our website. This presentation will be done by Duncan Minto, the Group CFO, and will be followed by a Q&A session. Duncan, the floor is yours.

Thanks, Laurent. Good morning, everybody, or good afternoon, depending on where you're connecting. It's -- pleased to be with you this morning to present our Q1 revenue and sales performance. So let's go straight ahead. In Q1, group revenue increased by 7.3% compared to last year and stood at EUR 12.5 billion. At constant exchange rates, it was up 8.8%. As you know, in 2026, Mobility Services revenue has been reintegrated in the automotive segment following the reorganization of these activities. This reintegration amounted to EUR 17 million in Q1 2026 and to EUR 23 million in Q1 last year. Thus, automotive revenue stood at EUR 10.8 billion this quarter compared to the EUR 10.2 billion in Q1 2020, which is an increase of 6.5% or 8% at constant exchange rates. Mobilized financial services revenue was up 13% to EUR 1.7 billion. So drilling into the automotive revenue, which stood once again at EUR 10.8 billion in Q1, up 8% at constant exchange rates, the negative Forex impact was minus 1.5 points, mainly related to the devaluation of the Turkish lira and, to a lesser extent, the Argentinian bezel. Our strong sales increase in Turkey implied a more negative impact of the Turkish lira on revenue. However, it should be partly offset in terms of margin by the positive effect on production costs. The volume effect, the second slot was negative by minus 2.1 points in the quarter, mainly due to the minus 3.3% decrease in group registrations. In addition, it's worth highlighting that the independent dealer network reduction in Q1 '26 versus Q1 '25 had no impact on the volume effect. It reflected timing differences mainly related to Euro 6 EVs regulatory change. We had vehicles registered and invoiced at the end of 2025, which were delivered in the first quarter of this year and thus removed from inventory at this moment in time. So looking at the registrations, Worldwide sales stood at 546,000 units in the first quarter down 3.3% compared to Q1 '25. This was mainly due to one-off issues at Dacia, while Renault and Alpine sales grew. In Europe, the group confirmed its #3 position in the passenger car and light commercial vehicle market. So looking by brand, we see Renault brand sales were up 2.2% globally versus last year, thanks to the growth of electrified vehicles and the full diversity availability of light commercial vehicles. On international markets, Renault continues to consolidate its international footprint, supported by a renewed product lineup, notably in India, Morocco and Colombia, which were all up double digits. In Turkey, Renault maintained its leadership with total sales up 13% in the market down 4%. This trend will be reinforced throughout the year with our recent launches such as Renault Duster, sorry, in India as well as the upcoming launch of Renault Boreal in Turkey. Dacia sales were down 16.3% versus last year. The severe weather conditions implied a 10-day closure of the Strait of Gibraltar and floods in our Tangier plant, leading to logistics and production disruptions in the first 2 months of the year. Sales, however, are showing signs of recovery in March with a 1.9% growth in Europe compared to March 2025, and Dacia can rely on a strong order book fueled by double-digit order intake year-to-date. The several thousand units reduction losses should be caught up aggressively in the course of the first half of the year. Alpine sales were up by 54.7%, essentially driven by A290, and I'll come back later on this. In March, the group sales started to recover, in total, with a 5.3% global performance year-on-year, outperforming the market. As illustrated in recent years, two leg strategy is playing out very positively for Renault Group, and we are set to continue benefiting from a strong product momentum and the right technologies to address these growing markets. First, we are accelerating in electric vehicles in Europe. At group level, EV sales were up 21%, and the mix reached 17% of the sales in the first quarter 2026, which is up 4 points year-on-year. Under the Renault brand, we now offer 5 electric passenger cars covering the A2C segment, securing a strong position in Europe's core market. Renault brand EV sales increased by 43% in Q1 compared to last year. Renault EV mix continued to improve and reached 24% of sales at the end of Q1 2026. The brand was #1 EV in France and in the B segment, EV in Europe, benefiting from the success of Renault 5 which was the #1 BEV in most European markets, the progressive ramp-up of Renault 4 and the solid performance of. This momentum will be further supported by the launch of Twingo, which deliveries -- for which deliveries are about -- just about to start. Beyond the Renault brand, the group's EV offering momentum is complemented by Dacia Spring model year 2026, already a key player in affordable EVs and by Alpine's electric offensive with the A290 already on the road and the A390 to come soon. On the other hand, we intend to pursue the electrification of our ICE engines, thanks to best-in-class hybrid technology. The group confirmed its second position in the HEV market in Europe. Hybrid mix stood at 35% for the group in Q1 2026, up strongly compared to last year. Dacia HEV sales were up 49%, driven by Duster and Bigster, supporting the group's performance. Full hybrid eTech also continued to perform strongly across Renault Brands core models, representing more than 40% of the total sales, confirming their key role in the brand's balanced electrification strategy. The brand stood second place in HEV in Europe. All in all, electrified sales of the group grew 12% and represented, respectively, nearly 2/3 of of Renault brands sales are more than 30% of Dacia sales in Q1. Thus at group level, electrified vehicles represented more than 1 out of 2 sales in Europe, up 9 points compared to the previous year. This momentum is expected to pursue in the coming quarters with the recent launch of Twingo and the full rollout of Clio full hybrid. In Europe, Renault brand sales were up 3.8% versus last year. Renault gained one position and was ranked #2 in passenger car and light commercial vehicles with Clio as best-selling model. The brand was also #2 in LCV in Europe, supported by the full diversity availability of the LCV range, we benefited from a 15% sales growth following a transition year in 2025. Worldwide LCV sales increased by almost 7% year-on-year this quarter. Dacia maintained its position in the top 10 automotive brands across all channels for passenger cars in Europe and is top 3 in the retail channel. The brand's performance was especially strong in the retail market, which remains at the heart of the strategy. This reached a high level of 77% of passenger car sales. Duster is #3 SUV in the retail channel in Europe. We benefit from an increasingly attractive product lineup, notably thanks to the success of LPG and hybrid engines. The launch of Duster and Bigster Hybrid G150 4x4 as well as the Sandero LPG automatic transmission also strongly contributed to order intake momentum. This gives us good confidence in improving Dacia's sales performance in the coming months. Let's move to Alpine. After a triple-digit growth record in 2025, Alpine confirms the upward trend in Q1 '26 with more than 3,200 registrations worldwide which is up 55%. Alpine continues to expand sales in Europe, particularly in the U.K., which becomes its second most significant market and also in Germany and Spain. A290 is the best seller brands model with almost 2,500 registrations worldwide, up 64% and the A390, the brand's first 5-seat sport Fastback now being launched in most European countries who will support the brand by reaching new customers and further consolidating the sales growth. But above and beyond growth, we remain fully focused on sales quality as we illustrate on this slide. We still run our plants at a high utilization rate of above 90%. This was supported by the improvement of Chennai utilization rate in India. We continue to implement a strict discipline to the management of our total inventories, which stood at 554,000 units at the end of March. This level of inventory will enable us to smoothly operate during Q2, which is traditionally stronger in terms of registrations. This total level of stock is underpinned by a strong order book in Europe, which stood at 2 months of forward sales versus 1.5 months at the end of December 2025. It was fueled by a double-digit order intake growth since the start of the year with a significant acceleration in electric vehicles. We continue to uphold our commercial policy, which sets for residual value over volume. As an example, our group's retail channel mix was 58% of PC sales, 16 points above the market. Renault brand reduced its exposure to short-term rental channel and grew in the retail channel by 8.5% on our 5 main European countries. This notably supports meaningfully higher residual values against competition. Our residual values are 4 to 13 points above market average, thanks to this holistic approach to a commercial policy. All this will continue to be embodied in our ongoing product defensive. On inventories, as mentioned earlier, the total stood at 554,000 units at the end of March. We expect total inventories to be slightly lower at the end of June compared to March. So let's turn now to one of the major parts of growth, which was sales to partners. The strong positive impact was 5.9 points of revenue growth in the first quarter, driven primarily by the performance of partner programs, especially Nissan Micra. It also benefited from positive effects of scope evolution, as we've highlighted, the integration of RNAIPL, our Indian manufacturing sites contributed around EUR 200 million in quarter 1, 2026. The full year revenue for this should be around EUR 1 billion, but I'll remind you with a margin close to 0 on this activity. Secondly, we began the ramp-up of the distribution of GD vehicles in Brazil. It's the first phase of our agreement with local production through the Renault Brazil joint venture set to begin in the coming months. Let's now have a look at price, product mix and geographical effects. Price effect was slightly positive at plus 1 point in the first quarter. Price increases in international markets, which were there to compensate for the negative FX were partly offset by pricing pressure in Europe. This price pressure in Europe is expected to be pursued throughout the year. Product mix was solid, plus 2.6 points, mostly due to the success of electric vehicles and also the transition phase between Clio 5 and Clio 6, the ramp-up of Bigster and, to some extent, also Master. The geographical mix at minus 0.1 points was mainly explained by the sales increase in India. The last item other impacted positively revenue by 0.7 points in the quarter primarily related to solid performance of parts and accessories sales. Let's move to Mobilized Financial Services. New financing production was stable versus quarter 1, 2025. The average performing assets increased by 4.8% to EUR 61.9 billion, thanks mostly to the increase in the average ticket per vehicle over the last years. All in all, Mobilized Financial Services revenues were up 13% to EUR 1.7 billion, mainly driven, as I said, by the ticket per vehicle, but also still benefiting from the growing interest rate portfolio from previous years. So having gone through the revenues, let's look towards the outlook. This morning, we confirm our guidance for 2026, with a group operating margin around 5.5% of group revenue and an automotive free cash flow around EUR 1 billion. As per the usual seasonal patterns, H2 operating margin is expected to be higher than H1. I remind you that last year, H1 margin stood at 6%, while H2 margin stood at 6.5% of revenue. In 2026, international expansion, increasing sales to partners, the growing share of electric vehicles and the consolidation of RNAIPL on a full year basis will drive revenue growth, although being dilutive on margins. Cost reduction remains a key priority in 2026 and beyond. And as we communicated during the 2025 full year results, our '26 guidance assumes a substantial negative impact from raw materials and inflation. For a reminder, I said it would probably be close to twice the positive or the negative impact will be close to twice the positive impact we saw in 2025. As of Q1, our purchasing and functions performance are well orientated. Considering the geopolitical environment, we've decided to take additional measures to mitigate the potential impact of the Middle East crisis on raw materials, energy and logistics costs. At this stage, we see no meaningful impact, but we are monitoring the situation very closely. There are some potential risks considering the degree of uncertainty related to the situation. But as an automotive manufacturer, we must remain vigilant. 2026 automotive free cash flow will, as I remind you, include the EUR 350 million dividend from Mobilized Financial Services, and we have expected a negative change in working capital in '26 to continue to unwind the positive change we saw at the end of 2024. So to conclude, as you can see today, we delivered strong revenue growth in Q1 despite the challenging environment. It was supported by both automotive and mobilized financial services, demonstrating the robustness of the operating model. And as stated in future ready. In March, we started to recover in terms of sales performance, and we see that our order intake continues to evolve positively. This confirms the relevance of our comprehensive product lineup in the current environment supported by a 2-leg strategy both EV and HEV. So thank you for your attention this morning, and I think we can now go over to the Q&A.

[Operator Instructions] And the first question will come from Michael from ODDO BHF.

Do you hear me?

Loud and clear. .

Congrats on the Q1 performance. So I have 2 questions. First, on margins. You highlighted the strong BEV growth, and you had a meaningful contributions from sales to partners, both of which you have previously described as margin dilutive, including this morning. Could you maybe help us better quantify the expected margin impact of this mix effect this year? And how it should be factored into your 5.5% full year margin guidance? And maybe second question on the Middle East regarding the specific cost risk on , energy and logistics you mentioned. Do you have any estimate of the incremental growth exposure you're aiming to mitigate? And could you give us more color on the key levers you're using to offset these pressures?

Thanks, Mikael. So yes, we are seeing very strong EV growth and also sales to partners. The sales to partners were agreements that were concluded a while back, so obviously, they were very clearly built into our assumptions for future ready and also for the year. I confirm that sales to partners and EV are profitable for the group. It's just that we are dilutive compared to the average for the group. I guess the most difficult environment would be the agreement we have in India because our margin markup is on the -- what we call value added. So the actual production cost the workforce. And therefore, that's why I highlight the very strong growth in revenue has very little margin in India. But in terms of electric vehicles, you've got Twingo on the screen, which will be hitting the street soon. We're comfortable with the margin that we're being able to do that. We're seeing some very strong demand. Renault 5 is also another good contributor and rising. A290 on my left here is strong. Obviously, as you know, we have improvements to come in the C segment vehicles. But overall, it's a real confirmation that the group strategy in terms of having a highly competitive EV platforms is the right one to go with. You're also seeing that if we're seeing partner growth on these platforms, you're seeing them on the -- maybe the Nissan Micra today. You'll see them in the future also on Ford. If people are coming to us is because we have a highly competitive offer. So I think we're very well positioned to benefit from that uptick. But yes, it is slightly margin dilutive compared to the average of the range. But increasing EV volumes will also give us a bigger portfolio to work on in terms of cost reduction going forward. So all in all, this is pretty much in line with what we thought we were going to be doing. And also, I see it a positive overall for the group. In terms of Middle East, raw materials, obviously, we have some hedging on this. We have some contracts on the energy side. So this is not something I'm seeing impacting first half of the year. So we'll see how those come into time. And it's more about, as I said, as an automotive manufacturer, we have very volatile external environment, and we have to prepare ourselves for the future. So we have options ready in terms of, obviously, everything we can do internally on -- that's our job to manage that in terms of fixed costs, but also looking at how we can optimize our variable costs be it through logistics routes, be it through energy consumption within sites, be it through purchasing and sourcing. So I won't call out line by line our actions, but it's more about us looking ahead because at the moment, we're not seeing any impact short term in terms of demand. But we're obviously reading all the flashes on the price of oil and the impacts of this could have coming further down the line.

And our next question will come from Pushkar Tendolkar from HSBC.

Hope you all can hear me. So 2 questions from my side. First is on pricing, positive print and you mentioned the offset of FX in the international markets. I just wanted to check if there is also an incremental benefit that you get in Europe versus what you expected earlier from the tight supply at Dacia? And then also from the model changeover. For example, you have to -- you can -- you may have a lower discount on Clio 6 versus Clio 5. So does that also feed into this plus 1% pricing number? Second is on the competition and particularly in Europe -- where are you seeing this competition? I mean, is it the Chinese entirely? Or do you see increasing competition from your fellow European peers as well. Yes, those are my 2 questions.

Okay. Pushkar, thanks very much. Yes, in the pricing bucket, we -- sorry, I confirm what I said it was offsetting the FX negative internationally, but obviously partly impacted by the highly competitive situation in Europe. And yes, you're right, in there, you would see -- in that bucket, you'd see both what we call MSRP, the sticker price increase, but also any incentives. So the 2 are shown in the same bucket. . So when we talked about our outlook for 2026, we didn't have high expectations for a positive pricing environment in Europe. We knew it was going to be competitive and competitive I can confirm. In terms of calling out competition, is it just Chinese? Is it other generalist mark? I'd say it's broadly across the whole market. But you mentioned Dacia. Dacia is 77% retail-focused. So it's very much -- we're not going to go spreading the volumes across other channels. It's very much focused on that segment alone, and it's not a discounting model. So I mean, obviously, colleagues with us this morning, we have our Chief Growth Officer, Fabrice. So I don't know if you want to say. And I think, obviously, everyone always asks us which competitor is the worst in pricing, and we never really comment, but do you want to add anything?

I think we are following that. And of course, in Europe, we are looking at the increase of the commercial pressure, mainly represented by higher discounts from many of our competitors. From our side, we have a lot of factors which enable you to remain quite stable and to protect our residual value. The first one is the appeal of the product. You saw the picture of our new products. We are working in a very traditional segments for us, A, B and C. And on these segments, we are capable to propose like 206 products, which are very attractive and which enable us not to do discount and not to go on tactical channels, and we are monitoring that month after month. And I can tell you that we are very, very stable and far below average in terms of discount. The second point, which is beneficial for us now is our powertrain offer because we can offer now for Dacia and for Renault full hybrid with very low consumption and with also a lot of attractiveness, for instance, 4x4 LPG automatic transmission for, for instance, or Duster, Bigster, which are very important, very appealing in terms of product. And the last point, of course, is the today circumstances where people now, before they were hesitating between different powertrain. Now they want to go to EV, of course, in Europe. And this lack of hesitation and this kind of determination to go to new -- to shift to EV of course, is helping us a lot to manage our price at a good level. not only the new car prices, but also the used car prices in terms of EV now are well oriented, and that's a good point for us. So we have 3 factors, and we use that to keep the safest possible in terms of residual value and net pricing.

So we'll jump to the next question, which will come from Horst Schneider from Bank of America.

I hope you can hear me. The first question that I have is when we look at the progression of sales in the first quarter, we were seeing this weak January and February at Dacia and you explained the reasons well, and we understand that. I think March already was a lot better. So therefore, I want to get a feeling what's the run rate going forward. So the magnitude of sales growth we have seen in March is that something we can also expect for Q2. And can you confirm that take this India consolidation maybe aside that the sales growth is going to be positive in 2026. That's number one. On -- number two is when we look at the high oil price, you commented that it doesn't impact you yet a lot, but I want to get more information mainly if it's changing already consumer behavior, we are seeing that your best sales are performing well. You said it's slightly dilutive to mix, we know that. But what is it going forward? It's now from here BEV demand to accelerate a lot more. And could that basically have a more negative impact on the earnings in 2026?

Okay. Horst, thanks for the questions. So in terms of sales, you said Jan-Feb was impacted on the Dacia side. In March, we started to see a positive impact compared to last year, we mentioned that the order take was up double digits. And so with the strong order book of 2 months of forward-looking sales, we will see positive sales in Q2 now. I'm not sure we'll catch up 100% of what we lost out. Let's see, we don't push. So we'll do things in a normal way, we're not going to do any push sales. So we'll see how that flows through. But I remind you that we said when we published the '25 results that we weren't actually counting on Dacia growth this year. So it was more steady control of the business model, so even if we do catch up a bit in Q2, it's not the element that I think will be calling out for a full year sales growth on Dacia alone, okay? Let's see how things go. However, our sales internationally and on the Renault side is forecasting a sales growth full year. So I confirm that, that's the outlook as we see it today.

I can just follow-up. That means also group is positive in 2026, not just the international sales. The group is positive, right?

Yes. And keep in mind, for the subquestion on the India effect. So it will keep supporting the sales to partners notably until the annualization, which will occur on August 1 because we started to consolidate the RNAIPL activities on August 1. So this is something you need to keep in mind for your H2 forecast. Okay. . Second question was on the impact of orders. So yes, we are seeing an uptick in the EV mix in terms of order take in April. It's is quite significant. At the same time, we've got Twingo, R5, R4, A290. So is it our product attractiveness, our product portfolio or some reaction to Middle East crisis? Or is it both? Difficult to tell short term right now. So let's just say it's a confirmation that we have the right product. To be able to answer the market demand. Now I said it was dilutive once again, I think we have a very competitive offer in the A and B segments. So it's something that contributes in margin per unit in percentage, it's slightly dilutive. So it's not a killer. And we'd certainly -- obviously the drop down to margin in mass -- net income in mass. That's what allows us to pay a dividend and generate cash. So this is also constructing the business model for the future. So we know it's something that's going to happen as time goes on. Yes, there is an acceleration in order take in April. Let's see how it goes forward? You wanted to follow up .

But Duncan, there's not a down trading. There's more shift to, but not that people trade down, let's say, from C to B segment. You don't see that, right? .

No, no. So it's really people are coming in and as Fabrice said earlier, some people past few months may have been hesitating there. There's a clear move...

In Q1 the C and above segment mix progressed year-on-year. So this is something that. But again, we already mentioned when releasing the full year results, the dilutive effect of the sales to partners and BEVs compared to group level, it doesn't mean that we don't keep progressing. We told you during future ready about the road map to reduce the EV costs, and so it remains a priority, and we will notably introduce the LFP cell-to-pack batteries oil on all of our cars in 2026. What we see also is that the demand now is oriented on B or a segment like Twingo R5, and that's why we are very focused on retail channel, which is not as under pressure as what we could see on the C segment with fleet, for instance, I mean it's -- not only we don't see any downgrade, but we focus on the most profitable channels, whatever the segment type, which is good. .

We will now take the next question from Stuart Pearson from OxCap Analytics.

So if you just remaining on the product mix side, I just wonder, you've spoken about EVs and the impact there and the profitability there. But on Clio 6, obviously, that's a driver for the revenue, but presumably you're adding content to that. So just structurally, is that a much more profitable car than Clio 5 or very similar? Obviously, early in the life cycle, it might be more tablet just structurally, do you think that's a more profitable product. So just wondering how that product mix might drop through. And then working capital, Duncan, I think you mentioned, obviously, the unwind you expect partially from last year. But I just wonder whether the H1, H2 dynamic this year could be a bit different because of this volume catch up we're seeing in Q2. I'm not sure how that will impact your production and obviously, receivables, et cetera, in H1. It's normally a negative for your working capital in H1, of course, so I wonder whether that might be slightly less negative than we might have thought because of this catch-up effect. And then just very quick. Not sure if you can say anything on the forward LCV talks where we might expect any update on that? Anything to report there would be interesting.

Stuart, could you just repeat the last one. Sorry, is it 4 LCV...

4. Yes, the potential tie-up there, whether there's any potential time line where we might hear something on that?

Okay. I'll take the last one first. It's the easiest one. Nothing new to report. As we said, we have discussions on the passenger side of things that are progressing well. where we have opportunities to look at LCV going forward, but the product life cycle means that it's further out in the distance. So it's not something if it were to happen that is a short-term subject. Okay. On product mix, Clio 6 to Clio 5. There's not a major difference. I mean, yes, we have equipped the car, but I think it's also the fact that hybrid mix is so high. It's such a competitive offer. I mean, Fabrice, I don't know if you want to come back on this, but it's -- now 89 grams.

Yes. I would say with Clio, we have a smooth transition, but with a big change. You should take a bigger loop on Clio story. 4, 5 years ago, Clio was really rental car oriented. And now we are mainly retail and hybrid. And of course, when you do this kind of change, you secure long-term profitability on a solid basis. That's what we are doing with the change between Clio 5 and Clio 6 with a very competitive production base. For us, to have a complementary offer to 5 or 4 and to have once again this 2-leg strategy on the B segment, which is the most important in Europe. .

But don't expect too many margin differences. H1, H2. So yes, we will catch up a little bit of production on the Dacia side back in Q2. But -- we are running at very high capacity. So the upside, that's why we can't just turn the thing back on and catch up within a couple of weeks. So the uptick is not that much. Working capital is normally a little bit negative in the first half of the year. So I don't think there'll be any major differences in the H1, H2. We obviously called out that we expect the margin to be stronger in H2 than H1 as it has been traditionally in terms of seasonality.

The next question will come from Christian Frenes from Goldman Sachs.

The first question on the positive side, light commercial vehicles, very strong growth, especially in Europe. I'm wondering what the visibility is you have into the rest of the year, and whether we should expect similar growth rates going forward? And also, any comment you can make on the operating margin of light commercial vehicles at least vis-a-vis last year or any qualitative comments you can make there? And my second question is maybe at the other end of the spectrum, if we look at Dacia you sound more muted on the sales recovery potential, even though we saw a strong finish -- at least a part of acceleration in the growth trends. You also have a powertrain shift there in Dacia. I'm wondering what sort of operating margin impact we should expect, again, just qualitative comments in H2 for Dacia, year-on-year. If you can just talk about that.

Yes. So LCV growth, obviously, we're off low comparison basis. Last year, we had the didn't have the full availability of Masters. I think that's what you're referring to. So you are seeing probably easier comparison basis. But if I move off comparing 1 quarter to a previous quarter, if you start to look at the order book, sales going forward on LCV, it's actually a little bit stronger than the group average. So I'd say the outlook is positive. Operating margin, as you know, is in the double-digit range. And I'm not expecting a huge change this year to last year, it's a slight upside positive. Let's just see we've got a low -- 1 quarter done, 3 to go. So solid performance, production is going smoothly. That's part of the reason why we're seeing the utilization rates above 90% because is producing well. We're also producing for partners on this. So that's a positive as well. More Master in the mix is good. And in terms of product dynamic, we have traffic ETEC, which is at the end of the year. So that's more of a bonus for next year. But in terms of having a full and comprehensive lineup, I think the LCV range is a solid attribute for the group.

Maybe if I can add just, Christian, in terms of run rate. Keep in mind, of course, that the comparison base is quite low, in fact, in H1, we were down 29% in H1, '25 on the LCV in Europe. So of course, the comparison is more favorable in this start to the year and will become less easy, I would say, in H2.

And then your second point, I'd like to personally apologize to Catherine, who is the boss of Dacia, she's here today. So I won't want to be muted in any way in looking at the performance. It was impacted, as you say, in Q1, the order take is double-digit up. Obviously, Dacia has its strong position within that group average of 2 months of order take. But it's not a push model. So if we catch up everything in Q2, brilliant. If we don't, we'll keep going at our pace, and we'll deliver in the terms of a natural flow to that sales trend. Now you pointed out and you're quite right to point out that we do have a powertrain update. So Euro 6 EBS was rolled out. And that is probably a slight positive in the price because we're pricing -- we're trying to price some of it, but it is a cost for us in terms of margin. So that was something we called out in 2025 full year results saying that this is going to impact us as of Q1. And it's -- that's why you'll see a negative mix impact coming through that in the operating margin line. But once again, I apologize, Catherine, it's not a muted message. The performance is there and the products strongly desired by customers. So good job, you're going.

And just as a reminder, in terms of guidance on the margin, we said that the price mix and enrichment bucket in our margin for full year '26 will be negative by several hundred millions and notably due to the fact that there is this regulatory weight on the margin which is difficult to pass through to the customers.

And the next question will come from Thomas Besson, Thomas from Kepler Cheuvreux.

First, I'd like to ask you something about the trends for orders in April. I understand Q1 orders are up on a base that was really easy for instance, for LCVs. You mentioned the positive trends for BEVs in April. But can you comment about what you expect in terms of development for the European market in places that are directly impacted by higher oil prices, whether it's Europe or India where you think we are going to see the same sustained momentum. So I find it great, but the orders go up from the end of December to the end of March. But do you expect that momentum to continue in Q2? Or do you expect the momentum to, at some point, reflect the change in the environment, which I think is visible for everyone. That's the first question. The second, I wanted to make sure I understood -- it seems to me that said the C segment share is growing up. I had the impression it was down to about 1/3 versus about 40% last year. Just wanted to make sure about that. And whether it was possibly linked with delayed shipment of Bigster and Duster that are a bit down in Q1, possibly because of the Gibraltar stuff, you mentioned the weather conditions. Just want to clarify at this point, and I would like you to also maybe confirm the -- any -- whether there is any friction or none at all between Dustan Victor, please.

Thomas, thank you for the questions. So we're getting questions on a shorter and shorter time horizon. So Q1 order take was strong. April order take, we had mentioned that the EV mix was certainly rising, but April order take continues to be strong. So not seeing anything slow down compared to what we're talking about in the stop date of 31st of March. So we're seeing the same trend with an acceleration in the pickup of EV mix. Then you said, do we expect that to continue throughout the whole year? No. I think we said, certainly, we don't see any impacts of the Middle East situation as we have right now, but we have to see that going forward, which is why we're trying to be prudent in terms of the decisions that we have in our hands on managing fixed costs, managing variable costs, and we will adjust production to any change in demand. So obviously, I think we have a very flexible system, and we do monitor it as Fabrice has also called out mix changes all the time, make sure we're playing in the right channel. So proven at this stage, nothing seen short term, strong continuation in April. But obviously, at some point, the economy could be impacted. Bigster Duster was impacted because I'll hand over to Catherine as long as she's forgive me for my muted answer to a previous question, but the close of the straits was actually impacting us shipping parts from Morocco to Romania. But maybe you want to comment on cannibalization between Duster and Bigster.

Yes. Thank you very much for that question also. So we have assumed when we were -- when we were deciding on the big set that there would be somehow cannibalization -- and we see now the first results of customer surveys from last -- and we see it's far less cannibalization than we have assumed. So the both products are very well positioned to find different customers in different segments have different price points. And therefore, it's a very great asset to be with the Bigster in the C segment, and we have a very good corrbitation of those both models. .

And Tom, I take the point on the CN above, and I'll come back to you on this, we will check the data, of course.

On the next and final question will come from Tobias Beith from Redburn.

It seems that the composition of volumes was quite decent in the first quarter. My question is this. How much upside is there to MFS's average ticket size and yield on its assets over the next 12 months?

Tobias, -- so volumes in the first quarter to average ticket price uptick. So -- as you can see, once again, MFS is a portfolio business. So we're looking at the average of the portfolio and the impact of that. I think it will continue to show a positive trend mix is increasing, obviously, as you read on the auto side in terms of euro per unit. You can see that in the product mix. So continuing positive trend. I wouldn't necessarily book 13% every single quarter, but we've seen that trend build last year, and expect it to be a strong contribution this year and going forward because in the future ready, we did call out mid-single-digit revenue growth, but coming from both auto and MFS.

Okay. But the ticket in the first quarter isn't some sort of exceptional results is kind of where I'm getting to.

Yes. Sorry, I thought so if you take it to average ticket rise in the first quarter, so if you're talking about what's in the auto -- because obviously, once again, MFS is a portfolio business. So the portfolio is growing year-on-year. It's not an exceptional thing, though.

So with this, we will close our today's call. Thanks a lot for your time and your attention. The team remains available. Of course, if you have any follow-up questions and speak soon.

Thank you. Have a good day.