Porsche SE takes a hit from Volkswagen and Porsche AG turmoil - Hard times for both auto titans
Stuttgart
Volkswagen's prominent investor issues alarm about potential billions of euros in financial setbacks
The ongoing turmoil at Volkswagen and the wobbly performance of its luxury arm, Porsche AG, are catching up with Porsche Automobil Holding SE (Porsche SE). As the company's biggest single shareholder in Volkswagen (53.3%), it's no surprise that the ongoing issues are impacting Porsche SE. To account for this, they anticipate writing off tens of billions of euros from their VW stake and millions from their Porsche AG stake. This move has led to a substantial net loss for the Stuttgart-based holding company.
Porsche SE is feeling the weight of Volkswagen's and Porsche AG's troubles, with 2024 potentially revealing deep red figures due to significant book value impairments.
Electrifying Challenges
Porsche AG's focus on electromobility has triggered a series of financial adjustments for 2025. These adjustments are largely driven by complications in electrification, resulting in a delayed ramp-up and a realignment of battery operations. One result of this shift is Porsche AG abandoning its plans to expand high-performance battery production through Cellforce Group GmbH independently.
Additionally, Porsche AG will face an uptick in special expenses stemming from the negative effects of battery activities, affecting their overall financial performance in 2025. Below are some significant changes in their forecast for the year:
- Sales Revenue: A modest decline from €39 to €40 billion down to €37 to €38 billion.
- Return on Sales: A significant dip from 10% to 12% to 6.5% to 8.5%.
- Automotive Net Cash Flow Margin: A notable decrease from 7% to 9% down to 4% to 6%.
- Automotive EBITDA Margin: An adjusted forecast from 19% to 21% to 16.5% to 18.5%.
- Special Expenses: A substantial increase from €800 million to €1.3 billion.
For Porsche SE, various factors could be playing a role in its potential financial struggles in 2024, such as broader market conditions, geopolitical tensions, and the performance of its positions in both Volkswagen and Porsche AG. However, concrete details about Porsche SE's 2024 financial situation aren't found in the available search results.
- The turbulent situation at Volkswagen and Porsche AG, directly affecting Porsche SE as its largest stakeholder in Volkswagen, is expected to result in significant book value impairments for Porsche SE in 2024, potentially leading to a substantial net loss.
- Porsche AG's focus on electromobility has led to a series of financial adjustments for 2025, including a delayed ramp-up and realignment of battery operations, an abandonment of plans to expand high-performance battery production through Cellforce Group GmbH, and an increase in special expenses stemming from battery activities, which could impact their overall performance in the finance, automotive, and transportation industries.
