Porsche Adjusts Financial Forecast for 2025 Amidst Market Challenges

Dr. Ing. h.c. F. Porsche Aktiengesellschaft has announced a significant adjustment to its financial forecast for the year 2025, citing various special effects and market challenges. The company now expects lower sales revenue and profitability margins compared to previous estimates, primarily due to slower growth in electromobility and geopolitical factors affecting supply chains.

Key Takeaways

• Sales Revenue: Expected between €37 billion and €38 billion (down from €39-40 billion).

• Return on Sales: Projected between 6.5% and 8.5% (previously 10% to 12%).

• Automotive Net Cash Flow Margin: Anticipated between 4% and 6% (down from 7% to 9%).

• Automotive EBITDA Margin: Forecasted between 16.5% and 18.5% (previously 19% to 21%).

• Battery Electric Vehicle (BEV) Share: Remains unchanged at 20% to 22%.

Reasons for Adjustment

The adjustments stem from several key factors:

1. Slower Ramp-Up of Electromobility: The anticipated growth in electric vehicle production has not met expectations, prompting a strategic realignment of battery production activities.

2. Increased Special Expenses: Special expenses are now projected to rise from €0.8 billion to €1.3 billion due to challenges in battery production and other related activities.

3. Geopolitical Challenges: Ongoing geopolitical tensions, particularly in the Chinese market, have led to declining demand in the all-electric luxury segment, impacting overall sales.

4. Supply Chain Issues: The company has faced additional costs related to suppliers, which have disproportionately affected the automotive net cash flow margin.

5. US Import Tariffs: The introduction of tariffs is expected to negatively impact results for April and May 2025, although the full extent of these effects remains uncertain.

Strategic Realignment

In light of these challenges, Porsche AG has decided to:

• Reassess Battery Production Plans: The company will no longer pursue independent expansion of high-performance battery production through its subsidiary, Cellforce Group GmbH.

• Focus on Value-Oriented Supply Management: Porsche aims to balance supply and demand while navigating the complexities of the current market environment.

Future Outlook

Despite the adjustments, Porsche remains committed to its long-term strategy of value-oriented sales and maintaining a strong presence in the luxury automotive market. The company plans to release its quarterly statement for the first quarter of 2025, which will include detailed figures and further insights into the adjusted forecast.

As Porsche navigates these challenges, stakeholders will be closely monitoring the company's performance and strategic decisions in the coming months. The adjustments reflect a broader trend in the automotive industry as companies adapt to rapidly changing market conditions and consumer preferences.