STUTTGART (dpa-AFX) - Porsche Automobil Holding SE (POAHF.PK, PAH3.DE) or Porsche SE has revised its earnings forecast for the 2025 financial year, reflecting updated guidance from both Dr. Ing. h.c. F. Porsche AG and Volkswagen AG. The changes stem from strategic shifts, project adjustments, and revised return expectations at both companies, which significantly influence Porsche SE's financial outlook due to its equity stakes in each.
Porsche AG now expects an operating return on sales of slightly positive to 2%, down from the previously projected 5% to 7%. In parallel, Volkswagen AG has updated its forecast for the same period, anticipating an operating return on sales of 2% to 3%, compared to the earlier range of 4% to 5%. This revision is partly attributed to a non-cash goodwill impairment of approximately 3 billion euros, linked to the Porsche operating segment within the Volkswagen Group.
Porsche SE, which holds a direct equity stake of around 12.5% in Porsche AG, is impacted by these developments through the at-equity result attributable to Porsche SE, which reflects the result after tax at the Porsche AG Group level. Additionally, Porsche SE's earnings are influenced by its approximately 31.9% equity investment in Volkswagen AG, which holds over 75% of Porsche AG's subscribed capital. Consequently, Porsche SE's adjusted group result after tax is significantly shaped by the performance of both Porsche AG and Volkswagen Group.
In response to these changes, Porsche SE has revised its earnings forecast for the 2025 financial year. The adjusted group result after tax is now expected to range between 0.9 billion euros and 2.9 billion euros, compared to the previous forecast of 1.6 billion euros to 3.6 billion euros. However, the 3 billion euros non-cash impairment at the Volkswagen Group level will not affect Porsche SE's adjusted or total group result after tax, as relevant adjustments had already been made in prior years.
Importantly, the earnings forecast adjustment does not impact the liquidity of the Porsche SE Group. Porsche SE reaffirms its projection for net debt as of December 31, 2025, which is expected to be between 4.9 billion euros and 5.4 billion euros.
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