Porsche Powers Ahead With Bold 2025 Investment and EV Surge
During the first quarter of 2025, Porsche AG continued to press ahead with strategic investments, channelling capital into its model range, software development, battery projects, and organisational reshaping. These decisive moves briefly impacted earnings, yet group sales revenue still reached €8.86 billion, with operating profit at €0.76 billion and an operating margin of 8.6%. Automotive net cash flow increased to €198 million as the company navigated economic headwinds and its restructuring program. Dr Jochen Breckner, Executive Board member for Finance and IT, noted: “As we expected, the first quarter has been weaker. Furthermore, the macroeconomic situation is expected to remain challenging. We can't completely escape this, but we are doing everything within our power to counteract it.”
Porsche recalibrated its product and corporate plans to suit shifting conditions and booked €1.3 billion in extraordinary expenses to sharpen profitability and resilience over the short and medium term. The firm invested about €200 million in specific projects during the quarter. Dr Breckner added: “We are investing decisively in the future of Porsche – in products, software and measures with which we want to strengthen the company sustainably and position ourselves robustly for the future. As announced, the special expenses will have a short-term impact on the results of the 2025 financial year.”
In March, Porsche strengthened its battery strategy by acquiring a majority stake in V4Smart GmbH & Co. KG, following an agreement with VARTA AG. The deal funds the development and production of large-format lithium-ion round cells, securing a supply of high-performance battery technology and complementing Porsche’s existing stake in VARTA.
Deliveries totalled 71,470 vehicles, with electrified models accounting for 39 per cent; purely electric cars represented 26 per cent, and plug-in hybrids made up 13 per cent. Customers welcomed 14,185 all-electric Macan SUVS, lifting overall Macan deliveries 14 per cent year-over-year to 23,555 units. Panamera led growth among the six model lines with deliveries up 27 per cent to 7,769.
Regional trends diverged. North American deliveries surged 37 per cent, partially recovering from last year’s import delays, while Chinese deliveries slid 42 per cent amid intense competition in the luxury EV segment. Porsche upholds its “value over volume” philosophy and maintains a balanced global sales mix to bolster resilience.
The Board has revised its 2025 outlook to reflect special charges and market pressures. Management now expects revenue of €37–38 billion, a return on sales of 6.5–8.5 per cent, an automotive net cash flow margin of 4–6 per cent, an automotive EBITDA margin of 16.5–18.5 per cent and a battery-electric vehicle share of 20–22 per cent.
A slower EV ramp-up prompted a strategic pivot in battery operations. Porsche will no longer independently expand Cellforce Group GmbH’s high-performance battery production; associated costs and other battery-related impacts increase 2025 extraordinary expenses to €1.3 billion.
The company also refined its supply strategy to manage geopolitical pressures, particularly in China, and noted additional supplier costs that disproportionately affect cash flow. Newly introduced US import tariffs will impact results in April and May 2025; however, Porsche has not quantified any further tariff effects for the remainder of the year.
By investing assertively while adjusting forecasts, Porsche aims to emerge from 2025 with stronger technology, a richer electric vehicle portfolio, and a more robust financial foundation, despite short-term pressures.