Porsche (P911) Q2 2024 (Q&A) earnings summary

Executive summary

• Sales revenue for H1 2024 was €19.5bn, down 4.8% year-over-year, with operating profit at €3.1bn, a 20.5% decrease, and profit after tax falling 22.2% to €2,153 million.

• Deliveries dropped 6.8% to 155,945 units, with BEV share falling to 5.9% due to model changeovers and significant declines in China.

• Management remains committed to value over volume, especially in China, and is focused on maintaining premium positioning and profitability despite market headwinds.

• Major product launches included new generations of Panamera, Taycan, hybrid 911, and all-electric Macan, impacting unit sales, inventories, and R&D costs.

• Flexibility in drivetrains and production is emphasized, with ongoing investments in combustion engines, hybrids, and BEVs to adapt to shifting market demand.

Financial highlights

• Return on sales guidance for 2024 was revised to 14%-15% due to supply chain constraints, down from the initial 15%-17%.

• Group EBITDA margin for Automotive was 24.1%, down 150 bps year-over-year.

• Automotive net cash flow margin dropped to 6.3% from 11.7%; net cash flow was €1,117 million, down from €2,217 million.

• Earnings per ordinary share were €2.36 (prior year: €3.03); per preferred share €2.37 (prior year: €3.04).

• R&D costs rose to €1.7bn (9.4% of sales revenue), with capital expenditure at €0.9bn (4.8% of sales revenue).

Outlook and guidance

• 2024 sales revenue outlook revised to €39–40 billion (previously €40–42 billion); return on sales now expected at 14–15% (was 15–17%).

• Automotive net cash flow margin guidance lowered to 7–8.5% (was 8.5–10.5%); EBITDA margin to 23–24% (was 24–26%).

• BEV share expected at 12–13% for 2024, down from prior guidance of 13–15%.

• Management expects a stronger 2025, driven by a full model range, improved mix (especially higher-margin 911 GTS and Turbo), and cost savings.

• Research and development costs are expected to decline in H2 2024 and further in 2025, supporting margin improvement.