The return of the sports and off-road vehicle manufacturer Porsche For earlier profit margins, it should take longer. To reach the medium -term goals lowered with the years, you have to “look towards the end of the decade,” said the new CFO Jochen Breckner (47) on Wednesday. Last year the weak brocked China-Business business in the VW subsidiary. The Stuttgarters are also facing a longer dry spell in the People’s Republic. Investors could not appease that the dividend should remain stable despite the fallen profit and despite the high renovation costs. The preferred share was the bottom of the dax index.
The paper dropped by 4.6 percent to 54.38 euros around noon. The course expanded its minus to around 7 percent in the current year. Last year the share was worth over 96 euros at the high. The record high of over 120 euros dates from May 2023. The return to more profitability should take a few years, wrote UBS analyst Patrick Hummel. The expert also referred to statements about higher investment expenses about a longer period of time and a weak start to 2025.
Porsche announced that he wanted to remain in the long -term ambition of more than 20 percent sales return on the operational result. “In the medium term, we are striving for 15 to 17 percent because of the challenging environment,” said Breckner. So far, the Stuttgarter had seen between 17 and 19 percent in this time horizon.
The conversion would take some time, said Breckner. This year, Porsche takes around 800 million euros separately in order to align the model range a little more on combustion engines and plug-in hybrids, to tackle a conversion and to advance the battery business. As already promised, the operational margin is only 10 to 12 percent. The turnover should amount to 39 to 40 billion euros.
Burglary of profits of 30 percent
In 2024, the group result dropped by 30.3 percent to around 3.6 billion euros. The cause of the minus was, among other things, the poorly running China business and the high costs for the renewal of model series. The dividend should remain unchanged at 2.31 euros per preferred share.
Turbulent weeks are behind the company: In February, Porsche first announced that to convert the board. The long -time CFO Lutz Meschke (58) and Sales Director Detlev von Platen (61) had to go. A little later it became known that the VW subsidiary adapts its strategy and, among other things, invests more money in combustion engines and plug-in hybrids. By 2029 Around 1900 positions in the Zuffenhausen Stimulant and in the Weissach development center.
In the future, Porsche will be aligned with the cost structures to around 250,000 cars per year, said Breckner. However, this should not be understood as the target. CEO Oliver Blume (56) said that he sees the company in the long term at around 300,000 cars sold. However, the management remained that the business did not want to control the business according to sales volume, but with a view to profitability.
“Sleepless nights”
In China, the business is currently only at half of the level that Porsche once planned, said Blume. Breckner added that the important market for Porsche will come back to the old levels in the future. Possible tariffs also worry management. Breckner spoke colloquially of “sleepless nights”, which prepares the situation of the management team.
In 2024, Porsche deliveries fell 3 percent to around 310,700 vehicles. In China, the minus was 28 percent. Sales fell by 1.1 percent to a good 40 billion euros, winning in daily business by almost 23 percent to 5.64 billion euros. Porsche was therefore less profitable: the operational return – i.e. the share of profit in daily business in sales – was 3.1 percent 3.9 percentage points below the previous year. The company has thus continued to remove its long -term goal of more than 20 percent.