Porsche strengthens future strategy with major investments in 2025

Porsche invests €1.3 billion in Q1 2025, focusing on new products, software development, and battery technology to enhance resilience amid economic challenges.

Porsche is making a bold bet on its future despite a challenging economic landscape. In the first quarter of 2025, the company invested around 1.3 billion euros in expanding its product portfolio, developing software and battery technologies, and adjusting its organizational structures. These investments are already impacting financial results, but Porsche emphasizes that the goal is to strengthen long-term resilience and competitiveness.

In the first three months of 2025, Porsche generated sales revenue of 8.86 billion euros, down 1.7% compared to the same period last year. Operating profit fell by 40.6% to 760 million euros, while the operating return on sales dropped to 8.6%. Despite the decline in overall deliveries, Porsche made notable progress in its electrification strategy — the share of electrified vehicles rose to 39% of total deliveries, with 26% being fully electric vehicles and 13% plug-in hybrids.

A major contributor to this was the new all-electric Macan, with 14,185 units delivered to customers. Overall Macan deliveries increased by 14% year-on-year, while the Panamera recorded the strongest growth among all model lines, up by 27%.

Porsche also advanced its position in battery technology. In March, it acquired a majority stake in V4Smart GmbH & Co. KG and expanded its cooperation with VARTA AG by investing in the development and production of large-format lithium-ion cylindrical cells. These moves are intended to secure a sustainable supply of high-performance battery cells for future needs.

However, challenges remain. Porsche has revised its forecast for 2025, lowering expectations for revenue and profitability. The adjustments stem from a slower ramp-up in electromobility, strategic changes at its subsidiary Cellforce Group, and growing geopolitical tensions, especially in the Chinese market. The introduction of U.S. import tariffs has also added pressure, with financial effects expected to appear in April and May.

Nevertheless, Porsche remains committed to its "value over volume" strategy and aims to maintain a balance between supply and demand, even amid intensifying competition and economic uncertainty. CFO Dr. Jochen Breckner noted that the company is taking decisive actions now to lay the groundwork for sustainable success in the years ahead, despite short-term challenges.

Source: porsche.com