Porsche Holding has reported a staggering loss of 20 billion Euros for the fiscal year 2024, primarily due to significant write-downs on its investments in Volkswagen and Porsche AG. This announcement, made on March 26, 2025, marks a dramatic shift from the previous year, where the company recorded a profit of 5.1 billion Euros. The financial turmoil reflects the broader challenges faced by the automotive sector, which has been grappling with various market pressures.
The losses stem from necessary value adjustments on the company's two main investments, which Porsche SE had anticipated weeks prior to the announcement. Despite this record loss, the company has decided to distribute a dividend of 1.91 Euros per preferred share, albeit a reduction from the 2.56 Euros paid in the previous year. This decision signals a cautious optimism regarding the company's underlying business performance.
According to the company, when adjusted for the value write-downs, Porsche SE achieved a positive adjusted consolidated profit after tax of 3.2 billion Euros for 2024. This figure, while lower than the previous year's profit, indicates that the core operations remain robust despite the extraordinary challenges.
Looking ahead, Porsche Holding is cautiously optimistic about 2025. The management expects an adjusted consolidated profit after tax to range between 2.4 billion and 4.4 billion Euros. Analysts are leaning towards the upper end of this range, reflecting a belief in a potential recovery as the automotive industry stabilizes.
Furthermore, the group's net debt is projected to be between 4.9 billion and 5.4 billion Euros, a slight increase from 5.2 billion Euros in 2024. This expected stability in net debt suggests that Porsche SE is managing its financial obligations effectively, even amidst significant write-downs.
The stock market reacted to the news with a slight decline in Porsche shares, which closed 0.85 percent lower at 37.38 Euros in XETRA trading. This decline reflects investor sentiment amid the company's significant loss announcement.
Porsche SE, owned by the Porsche and Piech families, has emphasized its commitment to improving profitability through cost-cutting measures at Volkswagen and Porsche AG. These efforts are seen as crucial for the future performance of the company, as both investments are pivotal to its financial health.
Lutz Meschke, the board member responsible for investment management at Porsche SE, stated, "We continuously assess promising investment opportunities, both in the portfolio area and with potential core investments. We also have the financial capacity to make larger investments." This statement underscores the company's strategy to diversify its investment portfolio and seek new growth avenues.
Despite the challenges, the company remains focused on its long-term objectives. The management's cautious optimism reflects a belief that the automotive sector will eventually rebound, allowing Porsche SE to recover from its current financial difficulties.
In conclusion, Porsche Holding's recent financial results paint a picture of a company facing significant challenges but still holding onto a glimmer of hope for recovery. The record loss for 2024 serves as a stark reminder of the volatility in the automotive industry, yet the planned dividend and optimistic outlook for 2025 suggest that Porsche SE is taking proactive steps to navigate these turbulent waters.
