Porsche AG first half of 2025: Porsche AG advances strategic realignment

New revenue forecast for first half of 2025, taking into account tariffs and restructuring costs

Porsche AG has announced its financial results for the first half of 2025 (January to June).

Despite facing a very difficult global situation, Porsche AG is "resolutely pushing ahead with strategic restructuring in the second half of 2025," but first let's take a look at its performance in the first half of 2025.

For the first half of 2025:

• Sales revenue was 18.16 billion euros (previous year: 19.46 billion euros)
• Group operating profit of 1.01 billion euros (previous year: 3.06 billion euros)
• Group operating profit margin was 5.51 TP/T (previous year: 15.71 TP/T)
• Automotive division net cash flow of €394 million (previous year: €1.12 billion)
• Automotive division net cash flow margin was 2.41 TP/1T (previous year: 6.31 TP/1T)

Hmm, an operating profit margin of 5.51 TP1T. That's a number I've never seen before.

Porsche AG Group	First half of 2024	First half of 2025
Sales	€19.46 billion	18.16 billion euros	-6.7%
Operating income	3.06 billion euros	1.01 billion euros	-67.0%
Operating margin	15.7%	5.5%
Number of vehicles delivered	155,945 units	146,391 units	-6.1%

Porsche said the results were affected by ongoing macroeconomic and geopolitical challenges.

We still face significant challenges, and these challenges are different from what was anticipated a few years ago, so some of our previous strategic decisions are a little different now.

That's why Porsche is now looking to further fundamentally develop the company, and CEO Oliver Blume says the completely revamped product lineup has been very well received by customers, and he expects the economy to improve again from 2026 onwards.

According to Oliver, Porsche's current situation is shaped by three factors in particular:

• Sharp decline in demand in the premium and luxury segments in China
• Import duties in the United States
• The slower-than-expected shift to electric mobility and the resulting knock-on effects on supplier networks

In response to this situation, Porsche's management is resolutely pursuing far-reaching measures to restructure and restructure the company, and has recorded special expenses of approximately 200 million euros for corporate restructuring and approximately 500 million euros for the battery business in the first half of 2025.

In addition, because the company offered price protection to American customers, it said it had to pay an additional 400 million euros in US import tariffs.

Perhaps they could no longer tolerate this (or so they thought), and there was also talk of Porsche prices being raised in the US from July.

However, I think it will be difficult for Porsche to continue to bear the import tariffs forever, and I feel that this is an unavoidable price increase.

I think this is a tough situation for those who are considering buying or selling a Porsche in the United States.

Second package of measures to be discussed with employee representatives

Jochen Breckner, executive director for finance and IT, said the aim of the strategic restructuring is to strengthen profitability and resilience, and that negotiations with employee representatives on a second package of measures, as previously announced, will begin in the second half of 2025.

It looks like Porsche will continue to face some tough times for its employees.

Value over volume strategy

The number of vehicles delivered worldwide in the first half of 2025 was 146,391, of which 36.11 TP1T were electrified vehicles (23.51 TP1T full EVs and 12.61 TP1T plug-in hybrids).

The proportion of electrified vehicles in Europe was approximately 57%, which exceeded the target set at the time of the IPO.

The best-selling model was the Macan, with 45,137 units sold worldwide.

In any case, Porsche still seems to be based on a strategy of "value over volume," and it certainly seems that the proportion of PTS and Sonderbunsch cars has been increasing recently.

As with options, increasing the profit margin on each vehicle may be essential for Porsche right now.

Planned ramp-up of battery cell production at V4Smart

Just a few months after its founding, V4Smart GmbH, a subsidiary of Porsche AG, has achieved its first milestone when its second production line in Nördlingen goes live as planned.

This line, along with the one in Ellwangen, is currently the only production facility in Europe for high-performance lithium-ion battery cells.

2025 forecast revised due to tariff agreement 

In addition, Porsche has adjusted its outlook for 2025 following the European Commission's agreement with the US government on import tariffs.

This takes into account the expected impact of new tariffs and the impact of tariffs that have been in place since June, which were not yet included in the previous forecast. The updated forecast also includes a forecast of 15% import tariffs from August 1st and potential countermeasures such as price adjustments:

• Group sales still expected to be in the range of €37 billion to €38 billion (in line with previous forecast)
• At the low end of the forecast range, Porsche expects a Group return on sales of 5% and an automotive division net cash flow margin of 3%.
• At the upper end of the forecast range, the group's return on sales is 7% and the automotive division's net cash flow margin is 5% (the upper end is consistent with the initial forecast at the end of April).

These guidance includes expected special effects of approximately 1.3 billion euros related to strategic restructuring.

Disclaimer:

This press release contains forward-looking statements and information that reflect Dr. Ing. hc F. Porsche AG's current views about future events. These statements are subject to many risks, uncertainties, and assumptions. materializes or if the assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results may be materially different from those Porsche AG expresses or implies by such statements. Forward-looking statements in this presentation are based solely on the circumstances at the date of publication. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. 

Source:(Official)Porsche AG pushes ahead with strategic realignment

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