Porsche cuts sales forecast on slower ramp-up of electromobility

Porsche (POAHY) decided to adjust the forecast for 2025 “in particular due to special effects. The company sees revenue between EUR 37B and EUR 38B, versus the previous forecast: EUR 39B to EUR 40B, a return on sales between 6.5% and 8.5%., versus the previous forecast of between 10% and 12%. It said, “As a result of the slower ramp-up of electromobility, today the Executive Board decided a strategic realignment of battery activities with the approval of the Supervisory Board. The previous plans to expand the production of high-performance batteries by Cellforce Group GmbH, a 100% subsidiary of Porsche AG, will not be pursued independently in the future. As a result of this and due to negative impacts from other battery activities, the amount of special expenses in the financial year 2025 will in total increase from EUR 0.8 billion to EUR 1.3 billion, which will affect results.” In addition, Porsche has adjusted its value-oriented supply management worldwide “due to increasing challenges caused by geopolitical conditions. This applies in particular to the Chinese market, where the continued challenging market conditions and declining demand in the all-electric luxury segment will affect development in the financial year 2025,” the company said. The introduction of U.S. import tariffs leads to negative impacts for the months of April and May which are included in the adjusted forecast, it added.