Porsche (P911) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales revenue declined 1.7% year-over-year to €8.9 billion, with operating profit down 40.6% to €762 million; deliveries fell 7.9% to 71,470 vehicles, mainly due to economic, geopolitical, and BEV transition challenges.

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

• BEV share in deliveries surged to 25.9%, up over 20 percentage points year-over-year, driven by the all-electric Macan.

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

• Executive Board changes were implemented in February 2025, with new heads for Finance/IT and Sales/Marketing.

Financial highlights

• Q1 2025 revenue was €8.9 billion; operating profit was €762 million, with an operating return on sales of 8.6% (down from 14.2%); EBIT included €200 million in charges for strategic realignment.

• Automotive segment revenue was €7.8 billion, with an 8.7% operating margin and €678 million operating profit; EBITDA margin was 18%.

• Automotive net cash flow was €0.2 billion; net liquidity at end of March was €8.7 billion, up 1.3% since year-end 2024.

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

• Basic EPS for Q1 2025 was €0.56 per ordinary share, down from €1.01.

Outlook and guidance

• 2025 guidance: sales revenue €37–38 billion, return on sales 6.5–8.5%, 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 due to battery and organizational changes.

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

• Long-term margin target remains 15–17%, but achieving this depends on improved geopolitical and market conditions.

• Automotive net cash flow margin now expected at 4–6% (was 7–9%).