Porsche (P911) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales revenue was €8.9 billion, down 1.7% year-over-year, with operating profit falling 40.6% to €762 million; deliveries dropped 7.9% to just over 71,000 units, mainly due to economic, geopolitical, and BEV market headwinds.

• Strategic realignment included scaling back independent battery production, ceasing Cellforce Group expansion, and adjusting global supply management, resulting in €200 million in Q1 charges.

• BEV share in deliveries surged to 25.9% from 5.6% year-over-year, driven by the all-electric Macan.

• U.S. import tariffs negatively impacted April and May, with further effects not yet included in the full-year forecast due to ongoing volatility.

• Global sales mix became more balanced, with China’s share dropping to 12% and strong growth in North America.

Financial highlights

• Q1 2025 revenue was €8.9 billion; cost of sales rose by €300 million to €7 billion, with cost ratio up 500 bps to 79% due to inflation, higher BEV share, and R&D expenses.

• Operating profit was €762 million, with an operating return on sales of 8.6%; EBIT included €200 million in charges from strategic realignment.

• Automotive segment revenue reached €7.8 billion, with operating profit at €678 million and EBITDA margin at 18%.

• Automotive net cash flow for Q1 was €0.2 billion, impacted by lower operating cash flow, increased inventories, and high brand investment.

• Financial services revenue was €1.1 billion, with operating profit at €67 million and penetration rate up to 39.8%.

Outlook and guidance

• FY 2025 guidance: sales revenue €37–38 billion, return on sales 6.5–8.5%, automotive net cash flow margin 4–6%, EBITDA margin 16.5–18.5%, BEV share 20–22%.

• Special expenses for 2025 raised to €1.3 billion, mainly from battery activities, product/software, and organizational changes.

• Guidance includes April/May U.S. tariff impacts but excludes further potential effects for the rest of the year due to uncertainty.

• Elevated R&D and CapEx expected to persist until new product portfolio is implemented over the next 2–4 years.

• Value-oriented supply management and challenging Chinese market conditions to weigh on results.