Photo credit: Porsche
Porsche has recently received approval from its Supervisory Board for long-term corporate planning, which includes strategies for the financial year 2025. The Executive Board has outlined several measures aimed at enhancing the company’s profitability in both the short and medium term. These measures consist of expanding the product lineup to incorporate additional vehicle models featuring combustion engines or plug-in hybrids, increasing the capacity of the special and exclusive manufactory, and making adjustments to the corporate structure.
The company anticipates that expenses related to vehicle development and battery activities within its subsidiaries will result in significant additional costs. For the 2025 financial year, the cumulative effect of these initiatives on operating profit and automotive net cash flow is projected to reach approximately €0.8 billion.
In light of the anticipated expenditures and a decrease in market expectations for sales in 2025, Porsche has issued forecasts for that financial year. It expects to achieve sales revenues between €39 billion and €40 billion, a return on sales ranging from 10% to 12%, and an automotive net cash flow margin between 7% and 9%.
Preliminary figures for the 2024 financial year indicate that the automotive net cash flow margin is slightly above 10%, which is at the higher end of the previously forecasted range of 7% to 8.5%. The return on sales is expected to be at the lower end of its forecast range, while other key performance indicators are not anticipated to deviate significantly from initial projections.
The automotive net cash flow margin for 2024 reflects a reduction in inventory during the fourth quarter and favorable special items recognized at year-end. Additionally, cash outflows related to pension plan funding through external plan assets amounting to €250 million have been considered.
Based on the results from the 2024 financial year and the current financial year’s planning, the Executive Board plans to propose a dividend to the Annual General Meeting that is expected to be similar to the previous year’s dividend, pending final approval from the Supervisory Board.
Porsche is scheduled to release its Annual and Sustainability Report for the 2024 financial year, which will include final financial figures and a comprehensive report on expected developments for the 2025 financial year, on March 12, 2025.
