Porsche plans to tackle the ongoing challenges with a costly set of measures. The Stuttgart-based company is investing heavily this year to develop new cars with combustion engines or plug-in hybrid drives, while also expanding its offering of special and exclusive equipment.
The company expects planned measures to weigh on cash flow in its automotive division — excluding financial services — by up to €800 million in 2025.
Porsche forecasts sales revenue of €39 billion to €40 billion in 2025, with an operating return on sales of 10% to 12%.
In 2024, the return was at the lower end of its 14% to 15% forecast range.
Investors have had little to cheer about recently, with Porsche’s share price struggling since its record rally following its initial public offering in September 2022.
The stock hit a peak of around €120 in May 2023 but has since lost significant value.
Currently, the share price is roughly half of its peak value and sits about 25% below the initial issue price of €82.50.
(dpa)