Porsche AG records robust results in a challenging environment

With the Cayenne, Panamera, Taycan, 911 and the electric Macan, Porsche renewed five out of its six model lines and successfully introduced them in the markets. At the same time, the company has resolutely adapted its product and corporate planning to the changed circumstances. The sports car manufacturer continues to rely on a mix of drivetrains. Its customers will still be able to choose between combustion engines, plug-in hybrids and all-electric drivetrains in every vehicle segment well into the 2030s. In view of the significantly longer global transition phase towards electric mobility, Porsche is expanding its product portfolio in the coming years to include additional models with combustion engines and plug-in hybrid powertrains.

“We have renewed five out of six model lines and extensively refreshed our product portfolio. This has laid the foundation for our success in the coming years, with the clear goal of exciting our customers with our iconic sports cars,” says CEO Dr Oliver Blume. “In view of the changed circumstances, we have adjusted our product strategy in all segments. And we further developed our proven and successful Porsche strategy over the course of last year to make the company even more flexible, robust and high-performing.”

911: a sports car icon with new top derivatives

Porsche will offer further highly emotive derivatives, especially of the 911. These include high-yield and exciting limited-edition models. The sports car icon will revive the style of the 1970s via a heritage limited-edition model from Porsche Exclusive Manufaktur – the third of four collector's cars from the Heritage Design Strategy. In the medium term, the 911 family will also welcome an additional flagship model, which will raise the bar even further in the sports car segment.

In order to make the Macan better in every way, Porsche decided early on to fully electrify the model line. Porsche stands by this decision. The all-electric Macan sets new standards in terms of performance, driving experience and design and has been very well received by customers. Once the combustion-engined models of the same name have been phased out, the Macan will be sold exclusively as an all-electric model, worldwide. At the same time, Porsche is continuously monitoring market development and customer demand. If necessary, the company looks ahead and adapts its product strategy. For example, the sports car manufacturer is currently evaluating an independent model line in the SUV segment with combustion and hybrid powertrains. It would have a new design and Porsche's characteristic profile, and would benefit from synergies. The model could be launched towards the end of the decade.

At Porsche, all three drive technologies symbolise emotion, performance and efficiency. An example of this is the Cayenne. In 2023, the current generation (a mix of combustion-engined and plug-in hybrid models) received one of the most extensive product upgrades in Porsche's history and it will be further developed in the future with considerable engineering effort. The sales of this model line were at an all-time high in 2024. At the same time, the fourth generation of the bestseller – a completely newly developed and designed model – is intended to significantly support the ramp-up of electric mobility at Porsche. The combustion-engined and electric models will be available in parallel well into the 2030s. Following on from the all-electric Cayenne, Porsche will introduce the all-electric sports cars in the 718 segment.

The sports car manufacturer is also further expanding the possibilities for customisation. There are already more than 1,000 Porsche Exclusive Manufaktur options available, while the Sonderwunsch programme provides the scope for almost anything that a customer could wish for – from exclusive details through to factory one-offs. Over the past five years, the average revenue per vehicle with Exclusive Manufaktur options has doubled. To enable even more individual customer dreams to be fulfilled, Exclusive Manufaktur’s capacity is to be significantly expanded.

Reorganisation and comprehensive programme for recalibration

At the end of February, Porsche AG initiated a long-term change in its Executive Board. Dr Jochen Breckner (47) took over responsibility for Finance and IT and Matthias Becker (54) for Sales and Marketing. They succeeded Lutz Meschke (58) and Detlev von Platen (61), who have left the company by mutual agreement.

Furthermore, Porsche has launched a comprehensive programme to rescale the company. By 2029, the number of jobs is to be reduced by around 1,900 positions. Porsche is leveraging demographic developments, natural turnover and a restrictive hiring policy to achieve this. In addition, socially acceptable measures are being implemented on a voluntary basis, including a special programme for partial retirement and, in individual cases, termination agreements with severance payments.

Furthermore, the company is reducing the workforce by another 2,000 jobs through the expiration of fixed-term employment contracts. In addition to these immediate measures, management and the Works Council are negotiating an additional structural package in the second half of the year. This will also make Porsche even more efficient in the medium and long term.

Porsche is also pushing ahead with its Road to 20 performance programme. In 2024 this played a major role in partially offsetting the negative effects on results from a challenging environment. In the future, it will be the leading instrument on the way to achieving a fundamental long-term ambition of a Group operating return on sales of more than 20 per cent. “In 2025, we will once again intensify Road to 20 with a focus on the cost structure – with the aim of further increasing our earning power,” says Dr Breckner, Member of the Executive Board for Finance and IT.

Robust 2024 financial year

Earnings in the 2024 financial year were mainly impacted by the challenging economic environment and the comprehensive renewal of the product portfolio. The tense market situation in China, the delayed global ramp-up of electromobility and disruptions in the supplier network had an impact on earnings and return on sales. Porsche management has partially mitigated the effects of these thanks to a number of countermeasures.

Group sales revenue was 40.1 billion euros, a single percentage point below the previous year's figure (40.5 billion euros). Porsche thereby almost entirely compensated for the decline in sales figures. This was achieved by a higher proportion of customisations and improved price positioning of the newly launched products. Group operating profit decreased to 5.6 billion euros (previous year: 7.3 billion euros). The group operating return on sales amounted to 14.1 per cent (previous year: 18.0 per cent). “In 2024, Porsche has proven that we are highly profitable even in challenging times and that we are financially robust,” says Dr Breckner. Automotive net cashflow amounted to 3.7 billion euros, almost on a par with 2023’s record year (4.0 billion euros). This figure includes cash outflows of 250 million euros in connection with pension plans. The automotive net cashflow margin was 10.2 per cent (previous year: 10.6 per cent), which was above the forecasts.

Porsche was also robust in terms of deliveries in the 2024 financial year, with 310,718 cars going out to customers. In a challenging environment, Porsche recorded sales records in four out of five regions of the world – in Europe, Germany, North America and the Overseas and Emerging markets. Nevertheless, the total number decreased slightly compared to the previous year (320,221 vehicles). This was mainly due to the continuing market challenges in China. The bestseller was the Cayenne with 102,889 examples being delivered, ahead of the Macan (82,795) and the 911 (50,941). In the 2024 financial year, 27 per cent of the new vehicles delivered were electrified – i.e. fully electric or plug-in hybrid. About half of them were all-electric sports cars (12.7 per cent). This share is predicted to significantly increase over the next few years as a result of the Porsche product portfolio. The expectation for 2025 is in a range between 33 and 35 per cent electrified vehicles, including 20 to 22 per cent fully electric.

In motorsport, Porsche has seldom seen more success than it did in 2024, when it won the FIA World Endurance Championship (WEC) driver’s title and all classes in the American IMSA racing series. In Formula E, works driver Pascal Wehrlein became the drivers' world champion.

Dividend remains at previous year's level

In the 2024 financial year, earnings per ordinary share amounted to 3.94 euros and earnings per preferred share to 3.95 euros. The Executive Board and Supervisory Board will propose to the Annual General Meeting of Porsche AG a dividend payment of 2.1 billion euros. As in the previous year, this corresponds to 2.30 euros per ordinary share and 2.31 euros per preference share.

2025: start of comprehensive recalibration

In 2025, in total, Porsche will invest an additional 800 million euros in rescaling and in its product portfolio and software and battery activities. In doing so, the company intends to increase its profitability and resilience in the short and medium term. “The extensive rescaling of the company as well as the investments we will be making will have a negative impact on the result for the 2025 financial year,” says Dr Breckner. “We are consciously setting out on a comprehensive recalibration and sustainably strengthening Porsche for the future.” In its forecast for 2025, Porsche is expecting market conditions to remain very challenging and for competition in China to intensify. Geopolitical uncertainties are also expected to persist with the new US administration. The current forecast for 2025 takes into account the current framework conditions. Further potential import restrictions and tariffs have not been factored in. 

For the 2025 financial year, Porsche AG expects a Group operating return on sales in a range of 10 to 12 per cent based on the aforementioned assumptions. This is below the figure for the 2024 financial year. Besides the additional investments that are planned, the main reasons for this include reduced vehicle sales and an unchanged high cost level in the value chain. In addition, very high depreciation will remain due to the extensive investments of recent years. This forecast includes assumed sales revenues in the region of around 39 to 40 billion euros. Dr Jochen Breckner: “In the long term, we remain committed to our fundamental ambition of a Group operating return on sales of more than 20 per cent. In the medium term, we are aiming for 15 to 17 per cent due to the persistently challenging environment.”