Background of the Forecast Reduction
Porsche, the renowned sports car manufacturer within the VW group, has lowered its annual forecast for 2025 due to several global challenges. This decision is of particular interest to investors, as it affects both market development and the corporate performance of DAX companies.
Difficulties in China
The Chinese market is of great importance to many automotive manufacturers. However, Porsche is struggling to establish a foothold in this market, which impacts revenue expectations. The company must adapt its offerings to the changed market conditions and is also reaching into its pockets to support suppliers.
US Import Tariffs
The US import tariffs on EU-imported cars pose another challenge. Porsche has incorporated these tariffs into its forecast, which increases costs.
Demand for Electric Cars
The decline in demand for electric cars has also led to an adjustment of the forecast. This trend is reflected in the strategy to promote electromobility in the long term, but with adjusted expectations.
Adjustments to the Forecast
Porsche has adjusted its forecast for the year 2025 as follows:
- Revenue: Now expected to be between 37 and 38 billion euros, instead of the previously planned 39 to 40 billion euros.
- Operating Profit Margin: The target range has been lowered from 10 to 12% to 6.5 to 8.5%.
- Net Cash Flow Margin for Automobiles: This has been reduced from 7 to 9% to 4 to 6%.
- EBITDA Margin for Automobiles: The EBITDA margin has been adjusted from 19 to 21% to 16.5 to 18.5%.
- BEV Share of Automobiles: The BEV share remains unchanged at 20 to 22%.
Strategic Adjustments
Porsche has also decided on a strategic reorganization of its battery activities. Plans to expand the production of high-performance batteries through its subsidiary Cellforce Group GmbH will no longer be pursued independently, leading to additional costs. These could rise from the original 0.8 billion euros to as much as 1.3 billion euros.
Impact on Investors
The reduction of the forecast by Porsche could affect market development and corporate performance of DAX companies. Investors should keep an eye on these developments, as they may impact stock prices and general market sentiment. Porsche’s challenges reflect the current global economic uncertainties and can serve as an indicator of the challenges facing other companies in the automotive industry.