Porsche SE: Billions in Loss in the First Quarter of 2025
Porsche SE, the holding company of the Porsche and Piech families, recorded a consolidated loss of 1.08 billion euros in the first quarter of 2025. This loss is primarily due to impairments of its investments in Volkswagen and Porsche. In comparison, the company achieved a profit of 1.06 billion euros in the same period last year.
Financial Details
- Consolidated Loss: The loss of 1.08 billion euros in the first quarter of 2025 marks a significant decrease compared to the previous year.
- Adjusted Earnings: Excluding the impairments, Porsche SE reported an adjusted after-tax profit of 0.5 billion euros in the first quarter.
- Net Debt: The net debt of the group increased due to investments and financing costs to 5.3 billion euros as of March 31, 2025, compared to 5.2 billion euros at the end of 2024.
Outlook for 2025
Porsche SE anticipates an adjusted consolidated after-tax result for the entire year of 2025 between 2.4 billion and 4.4 billion euros. The group’s net debt is expected to range between 4.9 billion and 5.4 billion euros.
Market Impact
Despite the billion-euro loss, Porsche’s stock briefly traded 0.87 percent higher at 38.42 euros in XETRA trading. This indicates that market expectations and the company’s long-term strategy are still being viewed positively.
Importance for Investors
The loss has direct implications for investors as it provides insights into the current financial health of the company. The impairments on the investments in Volkswagen and Porsche are significant factors affecting financial performance. Despite the loss, the long-term outlook for the year 2025 remains positive, suggesting a stable market position for the company.
Outlook
The financial situation of Porsche SE will continue to be influenced by developments in the automotive industry and global market conditions. The company’s ability to adapt to changing market circumstances and achieve its strategic goals will be crucial for its future financial performance.