Porsche AG adjusts 2025 financial forecast due to battery strategy and market challenges

Porsche AG updates its 2025 forecast citing battery strategy changes, Chinese market slowdown, and US tariffs. See new revenue and profitability expectations.

Porsche AG has revised its financial forecast for 2025. The company's Executive Board decided to lower key expectations in response to several factors: a strategic realignment of battery activities, tightening market conditions in China, and the introduction of new US import tariffs.

Revenue for the year is now expected to be between €37 and €38 billion, down from the previous €39 to €40 billion. The return on sales forecast has been reduced from 10–12% to 6.5–8.5%. Automotive net cash flow margin and EBITDA margin forecasts have also been adjusted downward.

One of the major changes is in Porsche’s battery strategy. The company has abandoned plans to independently scale high-performance battery production through its subsidiary Cellforce Group. Originally, the project aimed for aggressive expansion, but the slower pace of electromobility growth prompted a strategic shift. As a result, expected special expenses for 2025 will increase to €1.3 billion from the initially planned €0.8 billion.

External factors are also weighing heavily. Geopolitical challenges have forced Porsche to reassess its global supply chains. The Chinese market, in particular, remains difficult, with demand for fully electric luxury vehicles continuing to decline due to fierce price competition and market saturation.

The newly introduced US import tariffs are adding further pressure, especially during April and May 2025. Although the full impact on the year's financial results is still uncertain, Porsche has already factored part of the negative effect into its updated forecast.

Despite these challenges, the company remains committed to a strategy of balancing supply and demand, emphasizing quality over quantity in its sales approach. Porsche also reaffirms its long-term commitment to electrification, aiming for an 80% BEV share by 2030.

Source: porsche.com