Porsche AG: Longer Path To Profitability (Rating Downgrade)
Porsche AG's profitability is expected to decline with new expenses reducing profit margins to 10-12% in 2025, with recovery not anticipated until 2027/28. Management changes, including the departure of the CFO and Head of Sales & Marketing, signal a strategic restart amid execution issues. Porsche's multiple is no longer justified. We moved our rating to a sell.
Here's why the Porsche stock price has imploded
Porsche stock price has imploded, and moved to a record low as the company goes through one of its worst crises in decades. It slumped to an all-time low of €55.56, down by over 55% from its all-time high, bringing its market cap to over €25 billion.
Luxury carmaker Porsche's grim 2025 outlook sends shares down
Porsche AG shares fell 7% in early Friday trade after the luxury carmaker forecast a preliminary profit margin of 10%-12% for 2025, far below expectations, as it struggles to boost flagging sales and weak demand in China.
Porsche says vehicle development expenses to impact 2025 operating profit
Porsche AG said on Thursday that expenses for the vehicle development and battery activities in its subsidiaries will impact its operating profit and automotive net cash flow for up to 800 million euros ($830.80 million) in 2025.
Porsche starts talks to end CFO, sales chief contracts
Porsche's supervisory board has started talks to end finance chief Lutz Meschke's and sales executive Detlev von Platen's contracts early, the German luxury carmaker said in a statement late on Saturday, as it struggles to boost flagging earnings and weak sales in China.
Porsche's 2024 China sales fall by 28%
German sports car maker Porsche AG reported a 28% tumble in 2024 China sales on Monday, as persistent weakness in the world's largest car market hit German carmakers.
VW top shareholder Porsche SE sees impairment on investment of up to 20 bln euros
Porsche SE , the holding company which owns a third of Volkswagen , expects an impairment on its investment in the carmaker of up to 20 billion euros ($20.98 billion), it said on Friday.
Not Just A Porsche Stock, But It Could Still Hold Hidden Alpha
POAHY shares are not a vehicle for investing exclusively in Porsche; rather, they provide substantial exposure to VWAGY and other small but innovative ventures. Given the increase in net debt, a dividend cut is likely to be expected. The debt level is shrinking, creating a favorable discount in the share price relative to NAV.
Porsche staff to join wave of strikes in key German industries
Porsche AG staff at the German carmaker's site in Stuttgart will join a wave of strikes in key German industries on Tuesday, said IG Metall union's local branch, as part of national action planned to push for higher pay.
Porsche AG flags cost cuts as China weakness, slowing EV shift hits profits
Luxury sportscar maker Porsche AG on Friday warned it may cut costs after a slower-than-expected transition towards electric vehicles and persisting weakness in the Chinese market caused nine-month operating profit to fall by more than a quarter.
Porsche's nine-month China sales plunge by third
German sports car maker Porsche on Friday posted a 29% nine-month sales drop in China, joining peers BMW and Mercedes in reporting weaker results in the country.
Porsche to recall over 27,000 EVs in US over battery short circuit risk
Porsche is recalling 27,527 electric sedans in the U.S. over concerns they may experience a short circuit within the battery module, the National Highway Traffic Safety Administration said on Tuesday.
