Photo credit: Porsche
Porsche finished the 2024 financial year with notable results despite facing a challenging economic landscape. The sports car manufacturer achieved record sales in four out of five global regions and maintained strong automotive net cash flow, which approached the record levels of 2023. The company successfully renewed five out of its six model lines, including the 911, Cayenne, Panamera, Taycan, and the electric Macan, adapting its product and corporate strategies to the evolving market conditions. Porsche continues to offer a diverse range of drivetrains, allowing customers to choose from combustion engines, plug-in hybrids, and all-electric options across all vehicle segments into the 2030s.
CEO Dr. Oliver Blume stated, “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.” The company has adjusted its product strategy to align with current market realities and has enhanced its operational flexibility.
In terms of product offerings, Porsche plans to introduce additional derivatives of the 911, including limited-edition models that reflect the design of the 1970s through its Heritage Design Strategy. The 911 family is also set to expand with a new flagship model aimed at elevating the sports car segment further.
Porsche has committed to fully electrifying the Macan model line, which is expected to set new benchmarks in performance, driving experience, and design. The all-electric Macan will eventually replace combustion-engine models, and the company is exploring the potential for a new SUV model line featuring combustion and hybrid powertrains, anticipated to launch by the end of the decade.
The Cayenne has also been a focal point for Porsche, receiving a significant product upgrade in 2023, with sales reaching an all-time high in 2024. The fourth generation of the Cayenne will introduce a newly designed electric model, supporting Porsche’s transition to electric mobility. Both combustion-engine and electric models will coexist into the 2030s, with plans for all-electric sports cars in the 718 segment.
Photo credit: Porsche
Customization options have expanded, with over 1,000 choices available through Porsche Exclusive Manufaktur. The Sonderwunsch program allows for extensive personalization, contributing to a doubling of average revenue per vehicle from these options over the past five years.
Porsche has also initiated a restructuring of its Executive Board, appointing Dr. Jochen Breckner to oversee Finance and IT, and Matthias Becker to manage Sales and Marketing, following the departure of long-serving executives. The company plans to reduce its workforce by approximately 1,900 positions by 2029, utilizing natural turnover and a restrictive hiring policy, while also implementing voluntary measures for affected employees.
The Road to 20 performance program has been instrumental in mitigating the adverse effects of the economic environment on results. This program aims for a long-term operating return on sales exceeding 20 percent, with intensified focus on cost structure expected in 2025.
Porsche’s financial performance in 2024 was influenced by the economic climate, including challenges in China and disruptions in supply chains. Group sales revenue reached 40.1 billion euros, slightly below the previous year, with operating profit decreasing to 5.6 billion euros. The operating return on sales was 14.1 percent, demonstrating the company’s resilience in a difficult market. Automotive net cash flow was reported at 3.7 billion euros, nearly matching the previous year’s record.
Deliveries totaled 310,718 vehicles, with the Cayenne leading sales at 102,889 units, followed by the Macan and 911. The proportion of electrified vehicles delivered was 27 percent, with expectations for this share to grow significantly in the coming years.
Porsche also achieved notable success in motorsport, winning the FIA World Endurance Championship driver’s title and securing victories in the American IMSA racing series.
For the 2024 financial year, earnings per ordinary share were 3.94 euros, prompting a proposed dividend payment of 2.1 billion euros, maintaining the same level as the previous year.
Looking ahead to 2025, Porsche plans to invest an additional 800 million euros in its product portfolio and operational improvements. The company anticipates continued market challenges and competition, particularly in China, and projects a Group operating return on sales of 10 to 12 percent for 2025. Dr. Jochen Breckner noted, “In the long term, we remain committed to our fundamental ambition of a Group operating return on sales of more than 20 percent.”