(BFM Stock Exchange) – The German brand Premium has announced 2024 preliminary results online with expectations. But his prospects for 2025 have the air of warning on results.

Introduced with great fanfare on the Frankfurt Stock Exchange in 2022 at a price of 82.5 euros, Porsche AG has since experienced a painful outing of road. The German premium and subsidiary manufacturer of Volkswagen is currently evolving around 56-57 euros per share, 30% less than its introductory course.

The company has suffered from the comparison with Ferrari, whose stock market status remains apart, with doubts about its faculty to draw the prices. Porsche also, like all German car manufacturers, suffered in China, where its volumes plunged 28% in 2024.

The communication of the company, Thursday evening, hardly helps to restore its stock market. The German group pre-announced results for 2024 and delivered its prospects for 2025.

These announcements are sanctioned by investors, the title Porsche AG losing 5.6% in the middle of the afternoon on the Frankfurt Stock Exchange.

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2025 felt perspectives

Based on preliminary results, the company indicates its margin of net cash flow of the automobile had exceeded 10% in 2024 and that its operating profit was located at the bottom of its previous indications (14% to 15%). According to Stifel, consensus awaited a margin of cash flow of 7.6% and an operating margin of 14.3%.

Bernstein notes that these indications are consistent with previous messages delivered earlier this month by the company. “But the severe deterioration in Porsche’s prospects for 2025 is a concern,” added the design office.

For the current year, Porsche AG is counting on sales between 39 billion and 40 billion euros, an operating margin of 10% to 12% and a margin of net cash flow of the automobile located between 7% and 9%.

However, according to UBS, consensus was 39.4 billion euros for revenues of 2025, 14.4% for the operating margin and 8.8% for the margin of cash. The Swiss Bank evokes a “warning on results”.

Porsche invoked, to justify these gloomy perspectives, the “drop in sales forecasts induced by the market” and additional expenses, having an impact of 800 million euros on its operating profit. Porsche refers in particular to the expansion of its product portfolio, including rechargeable thermal and hybrid vehicles, expenses related to the development of models and battery activities, as well as costs caused by “organizational adjustments ‘business”.

A strategy to review?

“If we think that ‘adjustments to the organization of the company’ are punctual (and can lead to workforce reductions), we consider that all other elements are the normal business course and are therefore part underlying performance, “notes UBS. In other words, the costs reported by Porsche have, largely, nothing exceptional.

“Less than a year ago, the Director General Oliver Blume assured the market, when the results of the year 2023 were published, that the range of forecasts of 15% -17% for 2024, recently announced, n ‘was that transitory and that Porsche would return to its objective of margin of 17-19 % in 2025, “recalls Bernstein.

“The announcement of (Thursday evening) provides an additional context” for the steep dismissals of the “director financial director and deputy managing director Lutz Meschke and the sales manager Detlev von Platen who were announced during the last weekend”, deduces The design office.

UBS believes that now that this truth operation has been carried out and that certain members of the Management (notably the financial director) have been dismissed, the company has the opportunity to restore its activity.

This should be accompanied by “an adjustment of the product strategy with internal generation internal combustion motor vehicles (we are waiting for Cayenne, Panamera and Macan)”, adds the Swiss bank. “However, this should take time (we think until 2027) and investments should remain high in the meantime. Consequently, the reversal of the negative tendency of profits is not the business of only a few quarters” , she warns.

“In recent months, we have repeatedly analyzed that Porsche should go through a volatile adjustment phase this year, adjusting its capacity to compensate for the weakness of China, spending more for thermal vehicles, increasing the Part of personalization and by changing direction (…) The company has taken a big step forward in this direction, but unfortunately at a higher cost than expected, “said Deutsche Bank.